Supply Chain Management

Exercise 5

Nama: Genta Yusuf Madhani

NIM: 1201174352

Kelas: TI-41-03

SOAL

1. SC Consulting, a supply chain consulting firm, must decide on the location of its home
offices. Its clients are located primarily in the 16 states listed in Table 5-5. There are four
potential sites for home offices: Los Angeles, Tulsa, Denver, and Seattle. The annual fixed
cost of locating an office in Los Angeles is $165,428, Tulsa is $131,230, Denver is
$140,000, and Seattle is $145,000. The expected number of trips to each state and the travel
costs from each potential site are shown in Table 5-5. Each consultant is expected to take
at most 25 trips each year.
Travel Cost
State Number of Trips
Los Angeles Tulsa Denver Seattle
Washington 150 250 200 25 40
Orgeon 150 250 200 75 35
California 75 200 150 125 100
Idaho 150 200 125 125 25
Nevada 100 200 125 150 40
Montana 175 175 125 125 25
Wyoming 150 175 100 150 50
Utah 150 150 100 200 30
Arizona 75 200 100 250 50
Colorado 150 125 25 250 65
New Mexico 125 125 75 300 40
North Dakota 300 200 150 200 30
South Dakota 300 175 125 200 20
Nebraska 250 100 125 250 30
Kansas 250 75 75 300 40
Oklahoma 250 25 125 300 55

Los Angeles Tulsa Denver Seattle

Fixed Cost
165428 131230 140000 145000

a. If there are no restrictions on the number of consultants at a site and the goal is to
minimize costs, where should the home offices be located and how many consultants
 should be assigned to each office? What is the annual cost in terms of the facility and
travel?
b. If 10 consultants are to be assigned to a home office, at most, where should the offices
be set up? How many consultants should be assigned to each office? What is the annual
cost of this network?
c. What do you think of a rule by which all consulting projects out of a given state are
assigned to one home office? How much is this policy likely to add to cost compared
to allowing multiple offices to handle a single state?

JAWAB

1.
a. Tujuan yang diminta merupakan minimasi biaya, maka:
State Los Angeles Trip Tulsa Trip Denver Trip Seattle Trip Total Trip
Washington 150 0 250 0 200 0 25 40 40
Orgeon 150 0 250 0 200 0 75 35 35
California 75 100 200 0 150 0 125 0 100
Idaho 150 0 200 0 125 0 125 25 25
Nevada 100 40 200 0 125 0 150 0 40
Montana 175 0 175 0 125 25 125 0 25
Wyoming 150 0 175 0 100 50 150 0 50
Utah 150 0 150 0 100 30 200 0 30
Arizona 75 50 200 0 100 0 250 0 50
Colorado 150 0 125 0 25 65 250 0 65
New Mexico 125 0 125 0 75 40 300 0 40
North Dakota 300 0 200 0 150 30 200 0 30
South Dakota 300 0 175 0 125 20 200 0 20
Nebraska 250 0 100 30 125 0 250 0 30
Kansas 250 0 75 40 75 0 300 0 40
Oklahoma 250 0 25 55 125 0 300 0 55

Yang bertanda kuning dikarenakan terdapat perjalanan yang memiliki biaya yang sama,
maka dari itu terdapat alternatif solusi yang lain. Dapat dilihat untuk diagram kantor ke
kota tujuan:
 Dan dengan kapasitas konsultan yang hanya dapat melakukan 25 kali perjalanan, maka:
Los Angeles Tulsa Seattle Total
Total Trip 190 125 100 415
Consultant 8 5 4 17

Berikut pula untuk rincian biaya yang terjadi:

Los Angeles Tulsa Denver Seattle Total
Fix Cost 165428 131230 140000 145000 581658
Trip Cost 15250 7375 22750 6750 52125
Total Cost 180678 138605 162750 151750 633783

b. Dikarenakan rincian jumlah konsultan dari jawaban 1a tidak ada yang melebihi 10,
maka solusi telah optimal.
c. Aturan tersebut dapat menguntungkan, ataupun sebaliknya. Apabila 1 negara bagian
untuk 1 kantor, maka jumlah kantor yang dimiliki haruslah ditambah menyesuaikan
dengan jumlah negara bagian, dan apabila terdapat lost sales, kantor lain tidak dapat
membantu untuk mendapatkan sales tersebut. Sementara apabila 1 negara bagian dapat
diatur oleh beberapa kantor, maka lost sales dan minimasi biaya kantor dapat diperoleh.

SOAL

2. DryIce, Inc., is a manufacturer of air conditioners that has seen its demand grow
significantly. The company anticipates nationwide demand for the next year to be 180,000
units in the South, 120,000 units in the Midwest, 110,000 units in the East, and 100,000
units in the West. Managers at DryIce are designing the manufacturing network and have
selected four potential sites—New York, Atlanta, Chicago, and San Diego. Plants could
have a capacity of either 200,000 or 400,000 units. The annual fixed costs at the four
locations are shown in Table 5-6, along with the cost of producing and shipping an air
 conditioner to each of the four markets. Where should DryIce build its factories and how
large should they be?

JAWAB

2. Dari soal diatas, dapat disimpulkan pada tabel di bawah ini:

Cost from
Region Demand
New York Atalanta Chicago San Diego
East $211 $232 $238 $299 110000
South $232 $212 $230 $280 180000
Midwest $240 $230 $215 $270 120000
West $300 $280 $270 $225 100000

Dan, dari tabel di atas, dapat ditentukan pabrik yang melakukan supply pada region tertentu,
dapat dilihat pada tabel di bawah:
Cost from
Region Demand
New York Atalanta Chicago San Diego
East 110000 110000
South 180000 180000
Midwest 120000 120000
West 100000 100000

Maka, dapat disimpulkan bahwa Dryice, Inc. dapat membangun pabrik pada New York,
Atalanta, Chicago, San Diego dengan kapasitas 200.000 yang selanjutnya akan
memproduksi 110.000 untuk New York yang memenuhi permintaan daerah timur, 180.000
untuk Atalanta yang memenuhi permintaan dearah selatan, 120.000 untuk Chicago yang
memenuhi permintaan daerah Midwest, dan 100.000 untuk San Diego yang memenuhi
permintaan daerah Barat.

Soal

3. Sunchem, a manufacturer of printing inks, has five manufacturing plants worldwide. Their
locations and capacities are shown in Table 5-7 along with the cost of producing 1 ton of
 ink at each facility. The production costs are in the local currency of the country where the
plant is located. The major markets for the inks are North America, South America, Europe,
Japan, and the rest of Asia. Demand at each market is shown in Table 5-7. Transportation
costs from each plant to each market in U.S. dollars are shown in Table 5-7. Management
must come up with a production plan for the next year.
a. If exchange rates are expected as in Table 5-8, and no plant can run below 50 percent
of capacity, how much should each plant produce and which markets should each plant
supply?
b. If there are no limits on the amount produced in a plant, how much should each plant
produce?
c. Can adding 10 tons of capacity in any plant reduce costs?
d. How should Sunchem account for the fact that exchange rates fluctuate over time?

JAWAB

3.
a. Dicari harga paling minimum, dengan melihat exchange rate. Dan didapatkan:
 Factory
Region Demand
United States Germany Japan Brazil India
North America $600 $1,300 $200 $1,200 $2,200.00 270
Europe $1,300 $600 $1,400 $1,400 $1,300.00 200
Japan $2,000 $1,400 $300 $2,100 $1,000.00 120
South America $1,200 $1,400 $2,100 $800 $2,300.00 190
Asia $1,700 $1,300 $900 $2,100 $800.00 100
Capacity 185 475 50 200 80
Production Cost $10,000 $7,530 $16,740 $7,306 $9,200.00

Tabel di atas untuk ongkos produksi telah dirubah menjadi US Dollar. Dan dengan
ketentuan bahwa setiap pabrik minimal memproduksi 50% dari kapasitasnya, maka:

Shipment
Region Total Demand
United States Germany Japan Brazil India
North America 100 160 - 10 - 270 270
Europe - 200 - - - 200 200
Japan - 95 25 - - 120 120
South America - - - 190 - 190 190
Asia - 20 - - 80 100 100
Total 100 475 25 200 80
Capacity 185 475 50 200 80

Dan dengan produksi serta shipment tabel di atas, dapat dilihat untuk total ongkosnya:
United States Germany Japan Brazil India Total
Production Cost $1,000,000 $3,576,750 $418,500 $1,461,200 $736,000 $7,192,450
Transportation Cost 60000 487000 7500 164000 64000 $782,500
Total Cost $1,060,000 $4,063,750 $426,000 $1,625,200 $800,000 $7,974,950

Maka, untuk pabrik yang berlokasi di United States, akan memproduksi sebanyak 100
ton tinta dan memberikannya ke pasar North America. Untuk pabrik yang berlokasi di
Germany, akan memproduksi sebanyak 160 ton untuk North America, 200 ton untuk
Europe, 95 ton untuk Japan, dan 20 ton untuk Asia. Untuk pabrik yang berlokasi di
Japan, akan memproduksi 25 ton untuk Japan itu sendiri. Untuk pabrik yang berlokasi
di Brazil, akan memproduksi 10 ton untuk North America, dan 190 ton untuk South
America. Dan untuk pabrik yang berlokasi di India, akan memproduksi sebanyak 80
ton untuk Asia. Dengan hal tersebut, seluruh permintaan telah terpenuhi dan pabrik
yang masih memiliki kapasitas tersisa adalah United States sebesar 85 ton dan Japan
sebesar 25 ton.
b. Dan apabila tidak terdapat batasan minimal pabrik memproduksi 50%nya dan tidak
terdapat batasan kapasitas dari tiap pabriknya, maka produksi serta pengantaran pada
market akan menjadi seperti:
 Shipment
Region Total Demand
United States Germany Japan Brazil India
North America 270 270 270
Europe 200 200 200
Japan 120 120 120
South America 190 190 190
Asia 100 100 100
Total 0 420 0 460 0
Capacity 185 475 50 200 80

Dan dengan jumlah produksi serta pengisian market seperti di atas, maka total biaya
yang terjadi akan seperti:
United States Germany Japan Brazil India Total
Production Cost $0 $3,162,600 $0 $3,360,760 $0 $6,523,360
Transportation Cost $0 $418,000 $0 $476,000 $0 $894,000
Total Cost $0 $3,580,600 $0 $3,836,760 $0 $7,417,360

c. Ya, dapat dicoba melakukan penambahan kapasitas 10 ton pada Brazil dikarenakan
lokasi tersebut sangat ekonomis untuk memproduksi lebih banyak barang. Maka akan
menjadi seperti:
Shipment
Region Total Demand
United States Germany Japan Brazil India
North America 115 135 20 270 270
Europe 200 200 200
Japan 120 120 120
South America 190 190 190
Asia 20 80 100 100
Total 115 475 0 210 80
Capacity 185 475 50 210 80

Dan dengan jumlah produksi serta pemenuhan market seperti di atas, maka jumlah
biaya yang dikeluarkannya berupa:
United States Germany Japan Brazil India Total
Production Cost $1,150,000 $3,576,750 $0 $1,534,260 $736,000 $6,997,010
Transportation Cost $69,000 $489,500 $0 $176,000 $64,000 $798,500
Total Cost $1,219,000 $4,066,250 $0 $1,710,260 $800,000 $7,795,510

d. Perubahan kurs mata uang selalu sangat cepat dan tidak dapat ditebak. Perubahan
tersebut dapat mempengaruhi lokasi produksi dan jumlah market yang akan
dipenuhinya. Seperti misalnya apabila menjadi terlalu tinggi, maka akan dipindahkan
ke yang lebih rendah, dan sebaliknya apabila menjadi sangat rendah, maka akan
dialokasikan secara maksimal ke yang rendah tersebut.

SOAL

4. Sleekfon and Sturdyfon are two major cell phone manufacturers that have recently merged.
Their current market sizes are as shown in Table 5-9. All demand is in millions sizes are as
shown in Table 5-9. All demand is in millions of units.
Sleekfon has three production facilities in Europe (EU), North America, and South
America. Sturdyfon also has three production facilities in Europe (EU), North America,
and the rest of Asia/Australia. The capacity (in million of units), annual fixed cost (in
millions of $), and variable production costs ($ per unit) for each plant are as shown in
Table 5-10.
Transportation costs between regions are as shown in Table 5-11. All transportation costs
are shown in dollars per unit.
Duties are applied on each unit based on the fixed cost per unit capacity, variable cost per
unit, and transportation cost. Thus, a unit currently shipped from North America to Africa
has fixed cost per unit of capacity of $5,00, a variable production cost of $5,50, and a
transportation cost of $2,20. The 25 percent import duty is thus applied on $12.70 (5.00 +
5.50 + 2.20) to give a total cost on import of $15.88. For the questions that follow, assume
that market demand is as in Table 5-9.
The merged company has estimated that scaling back a 20-million-unit plant to 10 million
units saves 30 percent in fixed costs. Variable costs at a scaled-back plant are
unaffected. Shutting a plant down (either 10 million or 20 million units) saves 80 percent
in fixed costs. Fixed costs are only partially recovered because of severance and other costs
associated with a shutdown.
a. What is the lowest cost achievable for the production and distribution network prior to
the merger? Which plants serve which markets?
b. What is the lowest cost achievable for the production and distribution network after the
merger if none of the plants is shut down? Which plants serve which markets?
c. What is the lowest cost achievable for the production and distribution network after the
merger if plants can be scaled back or shut down in batches of 10 million units of
capacity? Which plants serve which markets?
d. How is the optimal network configuration affected if all duties are reduced to 0?
e. How should the merged network be configured?
Jawaban

4.
a. Untuk menjawab poin a, perhitungan dilihat masih dari aspek Sleekfon dan Sturdyfon.
Untuk pemenuhan permintaan Sleekfon yaitu:
North South Non- Rest of
Sleekfon Europe Japan Africa Total Capacity
America America Europe Asia/Australia
North America 10 3 2 2 17 20
South America 4 1 5 10
Europe 20 20 20
Total 10 4 20 3 2 2 1
Demand 10 4 20 3 2 2 1

Total biaya pada solusi di atas adalah $564,39

Untuk pemenuhan permintaan Sturdyfon yaitu:
North South Non- Rest of
Sturdyfon Europe Japan Africa Total Capacity
America America Europe Asia/Australia
North America 12 1 13 20
Rest of Asia 7 3 10 10
Europe 4 8 1 13 20
Total 12 1 4 8 7 3 1
Demand 12 1 4 8 7 3 1

Total biaya pada solusi di atas adalah $512,68

b. Penggabungan yang dilakukan Sleekfon dan Sturdyfon dalam perhitungannya juga
dijumlahkan. Demand dari setiap daerah dijumlahkan, dan dengan kapasitas yang
dimiliiki sekarang terdapat pabrik yang lebih banyak. Dapat dilihat di bawah:
 North South Non- Rest of
Europe Japan Africa Total Capacity
America America Europe Asia/Australia
North
16 4 20 20
America
Sleekfon South
5 5 10
America
Europe 4 11 2 17 20
North
6 6 20
America
Sturdyfon Rest of
5 5 10 10
Asia
Europe 20 20 20
Total 22 5 24 11 9 5 2
Demand 22 5 24 11 9 5 2

Total biaya yang digunakan dalam penggabungan kedua perusahaan tersebut sebesar
$1066,82
c. A

SOAL

5. Return to the Sleekfon and Sturdyfon data in Exercise 4, Management has estimated that
demand in global markets is likely to grow. North America, Japan, and Europe (EU) are
relatively saturated and expect no growth. South America, Africa, and Europe (Non-EU)
markets expect a growth of 20 percent. The rest of Asia/Australia anticipates a growth of
200 percent.
A. How should the merged company configure its network to accommodate the anticipated
growth? What is the annual cost of operating the network?
B. There is an option of adding capacity at the plant in the rest of Asia/Australia. Adding
10 million units of capacity incurs an additional fixed cost of $40 million per year.
Adding 20 million units of additional capacity incurs an additional fixed cost of $70
million per year. If shutdown costs and duties are as in Exercise 4, how should the
merged company configure its network to accommodate anticipated growth? What is
the annual cost of operating the new network?
C. If all duties are reduced to 0, how does your answer to Exercise 5(b) change?
How should the merged network be configured given the option of adding to the plant in
the rest of Asia/Australia?

JAWABAN

5.
a. A
b. B
c. C

SOAL
 6. StayFresh, a manufacturer of refrigerators in India, has two plants—one in Mumbai and the
other in Chennai. Each plant has a capacity of 300,000 units. The two plants serve the entire
country, which is divided into four regional markets: the north, with a demand of 100,000
units; the west, with a demand of 150,000 units; the south, with a demand of 150,000 units;
and the east, with a demand of 50,000 units. Two other potential sites for plants include
Delhi and Kolkata. The variable production and transport costs (in thousands of rupees; 1
U.S. dollar is worth about 65 rupees) per refrigerator from each potential production site to
each market are as shown in Table 5-12.
StayFresh is anticipating a compounded growth in demand of 20 percent per year for the
next five years and must plan its network investment decisions. Demand is anticipated to
stabilize after five years of growth. Capacity can be added in increments of either 150,000
or 300,000 units. Adding 150,000 units of capacity incurs a one-time cost of 2 billion
rupees, whereas adding 300,000 units of capacity incurs a one-time cost of 3.4 billion
rupees. Assume that StayFresh plans to meet all demand (prices are sufficiently high) and
that capacity for each year must be in place by the beginning of the year. Also assume that
the cost for the fifth year will continue for the next 10 years—that is, years 6 to 15. The
problem can now be solved for different discount factors. To begin with, assume a discount
factor of 0.2—that is, 1 rupee spent next year is worth 1 - 0.2 = 0.8 rupee this year.
A. How should the production network for the company evolve over the next five years?
B. How does your answer change if the anticipated growth is 15 percent? 25 percent?
C. How does your decision change for a discount factor of 0.25? 0.15?
D. What investment strategy do you recommend for the company?

JAWABAN
6.
a. Demand disusun menjadi 5 tahun kedepan, dapat dilihat pada:
DEMAND
Tahun North East West South Total
0 100000 50000 150000 150000 450000
1 120000 60000 180000 180000 540000
2 144000 72000 216000 216000 648000
3 172800 86400 259200 259200 777600
4 207360 103680 311040 311040 933120
5 248832 124416 373248 373248 1119744

Demand yang dimiliki pada tahun ke 5 adalah sebesar 1.119.744, sementara StayFresh
telah memiliki 600.000 kapasitas unit produksi, maka sisanya sebesar 519.744. Untuk
mengetahui pilihan menambahkan kapasitas unit produksi, menggunakan NPV (Net
Present Value) dengan harga penambahan 2 billion rupee untuk 150.000 unit dan 3.4
billion rupee untuk 300.000 unit dan asumsi discount factor 0.2, terdapat 3 pilihan:
1. 150.000 tiap tahun
NPV= 2/ (1.2) +2/ (1.2) (1.2) +2/ (1.2) (1.2) (1.2) +2/ (1.2) (1.2) (1.2) (1.2) = 5.1
billion rupee
2. 600.000 di tahun 1
NPV= 2*3.4/1.2= (5.67) billion rupee
3. 300.000 di tahun 1 dan 3
NPV= 3.4/ (1.2) +3.4 / (1.2) (1.2) = (4.8) billion rupee.
Dari NPV tersebut, dapat disimpulkan bahwa penambahan pabrik yang menguntungkan
merupakan 300.000 unit di tahun ke 1 dan tahun ke-3, dan lokasi yang akan
ditempatkannya Delhi dan Kolkata.
Untuk produksi tahun awal (0):
Cost to
Supply Capacity
North East West South
Chennai 20 19 17 15 300000
Mumbai 17 20 15 17 300000
Demand
Supply Total Capacity
North East West South
Chennai 50000 150000 200000 300000
Mumbai 100000 150000 250000 300000
Total 100000 50000 150000 150000
Demand 100000 50000 150000 150000

Untuk produksi tahun pertama (1):

Cost to
Supply Capacity
North East West South
Chennai 20 19 17 15 300000
Mumbai 17 20 15 17 300000
Delhi 15 18 17 20 300000
Demand
Supply Total Capacity
North East West South
Chennai 180000 180000 300000
Mumbai 180000 180000 300000
Delhi 120000 60000 180000 300000
Total 120000 60000 180000 180000
Demand 120000 60000 180000 180000

Untuk produksi tahun kedua (2)

 Demand
Supply Total Capacity
North East West South
Chennai 216000 216000 300000
Mumbai 216000 216000 300000
Delhi 144000 72000 216000 300000
Total 144000 72000 216000 216000
Demand 144000 72000 216000 216000

Untuk produksi tahun ketiga (3)

Cost to
Supply Capacity
North East West South
Chennai 20 19 17 15 300000
Mumbai 17 20 15 17 300000
Delhi 15 18 17 20 300000
Kolkata 18 15 20 19 300000
Demand
Supply Total Capacity
North East West South
Chennai 259200 259200 300000
Mumbai 259200 259200 300000
Delhi 172800 172800 300000
Kolkata 86400 86400 300000
Total 172800 86400 259200 259200
Demand 172800 86400 259200 259200

Untuk produksi tahun empat (4)

Demand
Supply Total Capacity
North East West South
Chennai 300000 300000 300000
Mumbai 300000 300000 300000
Delhi 207360 11040 218400 300000
Kolkata 103680 11040 114720 300000
Total 207360 103680 311040 311040
Demand 207360 103680 311040 311040

Untuk produksi tahun lima (5)

Demand
Supply Total Capacity
North East West South
Chennai 300000 300000 300000
Mumbai 300000 300000 300000
Delhi 248832 51168 300000 300000
Kolkata 124416 22080 73248 219744 300000
Total 248832 124416 373248 373248
Demand 248832 124416 373248 373248

b. Apabila pertumbuhan menjadi 15% atau 25%, keseluruhannya akan berubah, karena
demand pun berubah. Untuk kasus 25% dapat dilihat demand di bawah ini
DEMAND
Tahun North East West South Total
0 100000 50000 150000 150000 450000
1 125000 62500 187500 187500 562500
2 156250 78125 234375 234375 703125
3 195313 97656 292969 292969 878906
4 244141 122070 366211 366211 1098633
5 305176 152588 457764 457764 1373291
Untuk NPV, masih tetap sama karena tidak ada perubahan pada fixed cost penambahan
unit dan discount. Maka penambahan 2 pabrik 300.000 unit pada tahun 1 di Delhi dan
tahun 3 di Kolkata tetap terjadi.
Untuk produksi tahun awal (0)
Demand
Supply Total Capacity
North East West South
Chennai 50000 150000 200000 300000
Mumbai 100000 150000 250000 300000
Total 100000 50000 150000 150000
Demand 100000 50000 150000 150000

Untuk produksi tahun pertama (1)

Demand
Supply Total Capacity
North East West South
Chennai 187500 187500 300000
Mumbai 187500 187500 300000
Delhi 125000 62500 187500 300000
Total 125000 62500 187500 187500
Demand 125000 62500 187500 187500

Untuk produksi tahun kedua (2)

Demand
Supply Total Capacity
North East West South
Chennai 234375 234375 300000
Mumbai 234375 234375 300000
Delhi 156250 78125 234375 300000
Total 156250 78125 234375 234375
Demand 156250 78125 234375 234375

Untuk produksi tahun ketiga (3)

Demand
Supply Total Capacity
North East West South
Chennai 292969 292969 300000
Mumbai 292969 292969 300000
Delhi 195313 195313 300000
Kolkata 97656 97656 300000
Total 195313 97656 292969 292969
Demand 195313 97656 292969 292969

Untuk produksi tahun empat (4)

Demand
Supply Total Capacity
North East West South
Chennai 300000 300000 300000
Mumbai 300000 300000 300000
Delhi 244141 66211 310352 300000
Kolkata 122070 66211 188281 300000
Total 244141 122070 366211 366211
Demand 244141 122070 366211 366211

Untuk produksi tahun lima (5)

 Demand
Supply Total Capacity
North East West South
Chennai 300000 300000 300000
Mumbai 300000 300000 300000
Delhi 300000 300000 300000
Kolkata 152588 147412 300000 300000
Total 300000 152588 300000 447412
Demand 305176 152588 457764 457764

Terdapat lost sales pada permintaan di West sebanyak 157.764 dan pada South
sebanyak 10.352
c. Apabila discount rate menjadi 0.25 atau 0.15, maka terdapat perubahan pada
pendapatan dan perhitungan NPV.
Apabila
NPV > 0, maka pendapatan makin besar. Semakin besar NPV, semakin besar
pendapatan.
NPV < 0, maka pendapatan lebih kecil daripada discount rate
NPV = 0, maka pendapatan sama dengan discount rate.
d. Strategi untuk investasi masih belum dapat ditentukan apakah hal tersebut
menguntungkan atau tidak, diperlukan data lebih lanjut mengenai financial dari
StayFresh itu sendiri.

SOAL

7. Blue Computers, a major server manufacturer in the United States, currently has plants in
Kentucky and Pennsylvania. The Kentucky plant has a capacity of 1 million units a year,
and the Pennsylvania plant has a capacity of 1.5 million units a year. The firm divides the
United States into five markets: northeast, southeast, midwest, south, and west. Each server
sells for $1,000. The firm anticipates a 50 percent growth in demand (in each region) this
year (after which demand will stabilize) and wants to build a plant with a capacity of 1.5
million units per year to accommodate the growth. Potential sites being considered are in
North Carolina and California. Currently the firm pays federal, state, and local taxes on the
income from each plant. Federal taxes are 20 percent of income, and all state and local taxes
are 7 percent of income in each state. North Carolina has offered to reduce taxes for the
next 10 years from 7 percent to 2 percent. Blue Computers would like to take the tax break
into consideration when planning its network. Consider income over the next 10 years in
your analysis. Assume that all costs remain unchanged over the 10 years. Use a discount
factor of 0.1 for your analysis. Annual fixed costs, production and shipping costs per unit,
and current regional demand (before the 50 percent growth) are shown in Table 5-13.
a. If Blue Computers sets an objective of minimizing total fixed and variable costs, where
should it build the new plant? How should the network be structured?
b. If Blue Computers sets an objective of maximizing aftertax profits, where should it
build the new plant? How should the network be structured?
JAWABAN
7.
a. Asumsi North Carolina dan California akan membuat plant dengan kapasitas 1.500.000
unit.
Northeast Southeast Midwest South West Fix Cost Capacity
Kentucky 185 180 175 175 200 150000000 1000000
Pennsylvania 170 190 180 200 220 200000000 1500000
North Calorina 180 180 185 185 215 150000000 1500000
California 220 220 195 195 175 150000000 1500000
Demand 700 400 400 300 600

Untuk demand tersebut, pembuatan pabrik masih belum diperlukan. Karena

penambahan demand terdapat pada tahun berikutnya. Maka untuk pada tahun awal
Northeast Southeast Midwest South West Total Capacity
Kentucky 400000 400000 200000 1000000 1000000
Pennsylvania 700000 100000 600000 1400000 1500000
Total 700000 400000 400000 300000 600000
Demand 700000 400000 400000 300000 600000

Total biaya yang dikeluarkan atas produksi serta shipping cost di atas sebesar
$798,000,000.
Dan untuk tahun berikutnya, maka
Northeast Southeast Midwest South West Total Capacity
Kentucky 550000 450000 1000000 1000000
Pennsylvania 1050000 50000 1100000 1500000
North Calorina 600000 600000 1500000
California 900000 900000 1500000
Total 1050000 600000 600000 450000 900000
Demand 1050000 600000 600000 450000 900000

Total biaya yang dikeluarkan atas produksi serta shipping cost di atas sebesar
$1,278,000,000.
b. A

SOAL

8. Hot&Cold and CaldoFreddo are two European manufacturers of home appliances that have
merged. Hot&Cold has plants in France, Germany, and Finland, whereas CaldoFreddo has
plants in the United Kingdom and Italy. The European market is divided into four regions:
north, east, west, and south. Plant capacities (millions of units per year), annual fixed costs
(millions of euros per year), regional demand (millions of units), and variable production
and shipping costs (euros per unit) are as shown in Table 5-14.
Each appliance sells for an average price of 300 euros. All plants are currently treated as
profit centers, and the company pays taxes separately for each plant. Tax rates in the various
countries are as follows: France, 0.25; Germany, 0.25; Finland, 0.3; UK, 0.2; and Italy,
0.35.
a. Before the merger, what is the optimal network for each of the two firms if their goal is
to minimize costs? What is the optimal network if the goal is to maximize after-tax
profits?
b. After the merger, what is the minimum cost configuration if none of the plants is shut
down? What is the configuration that maximizes after-tax profits if none of the plants
is shut down?
c. After the merger, what is the minimum cost configuration if plants can be shut down
(assume that a shutdown saves 100 percent of the annual fixed cost of the plant)? What
is the configuration that maximizes after-tax profits?