COOL WIPES

Regional Annual Demand at CoolWipes (in thousands)

Wipes Ointment Wipes
Zone Demand Demand Zone Demand
Northwest 500 50 Lower Midwest 800
Southwest 700 90 Northeast 1000
Upper Midwest 900 120 Southwest 600

Q1. Annual Cost of Serving Entire Nation using Existing Plant at Chicago

Wipes Line
Capacity 5000000 units
Fixed Cost 5000000 per yerar in $
Variable Cost 10 per unit in $
Total Supply 4500000 units
Total Variable Cost 45000000 in $

Transportation Cost 23464000 in $

Total Cost (Wipes) 73464000 in $

Ointment Line
Capacity 1000000 units
Fixed Cost 1500000 per yerar in $
Variable Cost 20 per unit in $
Total Supply 515000 units
Total Variable Cost 10300000 in $

Transportation Cost 2697400 in $

Total Cost (oitment) 14497400 in $

Total Cost 87961400 in $

 Transportation Costs per Unit
Ointment Northwest Southwest Upper Midwest Lower Midwest
Demand Chicago 6.32 6.32 3.68 4.04
65 Princeton 6.6 6.6 5.76 5.92
120 Atlanta 6.72 6.48 5.92 4.08
70 Los Angeles 4.36 3.68 6.32 6.32

Plant at Chicago

Transportation Costs per Unit

Northwest Southwest Upper Midwest Lower Midwest Northeast Southeast
Chicago 6.32 6.32 3.68 4.04 5.76 5.96

Northwest Southwest Upper Midwest Lower Midwest Northeast Southeast

Demand 500000 700000 900000 800000 1000000 600000

Total 3160000 4424000 3312000 3232000 5760000 3576000

Transport
ation Cost

Transportation Costs per Unit

Northwest Southwest Upper Midwest Lower Midwest Northeast Southeast
Chicago 6.32 6.32 3.68 4.04 5.76 5.96

Northwest Southwest Upper Midwest Lower Midwest Northeast Southeast

Demand 50000 90000 120000 65000 120000 70000

Total 316000 568800 441600 262600 691200 417200

Transport
ation Cost
Northeast Southeast
5.76 5.96
3.68 4.08
4.04 3.64
6.72 6.6
 Regional Annual Demand at CoolWipes (in thousands)
Wipes Ointment Wipes
Zone Demand Demand Zone Demand
Northwest 500 50 Lower Midwest 800
Southwest 700 90 Northeast 1000
Upper Midwest 900 120 Southwest 600

WIPES
Transportation + Variable Cost per unit
Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 16.32 16.32 13.68 14.04 15.76
Princeton 16.6 16.6 15.76 15.92 13.68
Atlanta 16.72 16.48 15.92 14.08 14.04
Los Angeles 14.36 13.68 16.32 16.32 16.72
Demand 500000 700000 900000 800000 1000000

Wipes Units Transported from Plants to Demand Zones

Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 0 0 900000 800000 0
Princeton 0 0 0 0 0
Atlanta 0 0 0 0 1000000
Los Angeles 500000 700000 0 0 0
Units Received 500000 700000 900000 800000 1000000

Fixed Cost 9400000

Variable Cost 62524000
Total Cost 71924000

OINTMENT
Transportation + Variable Cost per unit
Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 26.32 26.32 23.68 24.04 25.76
Princeton 26.6 26.6 25.76 25.92 23.68
Atlanta 26.72 26.48 25.92 24.08 24.04
Los Angeles 24.36 23.68 26.32 26.32 26.72
Demand 50000 90000 120000 65000 120000

Oitment Units Transported from Plants to Demand Zones

Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 50000 90000 120000 65000 120000
Princeton 0 0 0 0 0
Atlanta 0 0 0 0 0
Los Angeles 0 8.7311E-11 0 0 0
Units Received 50000 90000 120000 65000 120000

Fixed Cost 1500000

Variable Cost 12997400
Total Cost 14497400

Objective Function 86421400

 Transportation Costs per Unit
Ointment Northwest Southwest
Upper Midwest Lower MidNortheast Southeast
Demand Chicago 6.32 6.32 3.68 4.04 5.76 5.96
65 Princeton 6.6 6.6 5.76 5.92 3.68 4.08
120 Atlanta 6.72 6.48 5.92 4.08 4.04 3.64
70 Los Angeles 4.36 3.68 6.32 6.32 6.72 6.6

Capacity (Units) Fixed Cost ($)

southeast Fixed Cost Capacity
15.96 5000000 5000000 5000000 5000000
14.08 2000000 2200000 0 0
13.64 2000000 2200000 2200000 2000000
16.6 2000000 2200000 2200000 2000000
600000

d Zones
southeast Units Supplied Plants (open=1)
0 1700000 1
0 0 0
600000 1600000 1
0 1200000 1
600000

Capacity (Units) Fixed Cost ($)

southeast Fixed Cost Capacity
25.96 1000000 1500000 1500000 1000000
24.08 1000000 1500000 0 0
23.64 1000000 1500000 0 0
26.6 1000000 1500000 0 0
70000

nd Zones
southeast Units Supplied Plants (open=1)
70000 515000 1
0 0 0
0 0 0
 0 8.73114914E-11 0
70000
 Regional Annual Demand at CoolWipes (in thousands)
Wipes Ointment Wipes
Zone Demand Demand Zone Demand
Northwest 500 50 Lower Midwest 800
Southwest 700 90 Northeast 1000
Upper Midwest 900 120 Southwest 600

WIPES
Transportation + Variable Cost per unit
Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 13.16 13.16 11.84 12.02 12.88
Princeton 13.3 13.3 12.88 12.96 11.84
Atlanta 13.36 13.24 12.96 12.04 12.02
Los Angeles 12.18 11.84 13.16 13.16 13.36
Demand 500000 700000 900000 800000 1000000

Wipes Units Transported from Plants to Demand Zones

Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 500000 700000 900000 800000 1000000
Princeton 0 0 0 0 0
Atlanta 0 0 0 0 0
Los Angeles 0 0 0 0 0
Units Received 500000 700000 900000 800000 1000000

Fixed Cost 5000000

Variable Cost 56732000
Total Cost 61732000

OINTMENT
Transportation + Variable Cost per unit
Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 23.16 23.16 21.84 22.02 22.88
Princeton 23.3 23.3 22.88 22.96 21.84
Atlanta 23.36 23.24 22.96 22.04 22.02
Los Angeles 22.18 21.84 23.16 23.16 23.36
Demand 50000 90000 120000 65000 120000

Oitment Units Transported from Plants to Demand Zones

Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 50000 90000 120000 65000 120000
Princeton 0 0 0 0 0
Atlanta 0 0 0 0 0
Los Angeles 0 8.7311E-11 0 0 0
Units Received 50000 90000 120000 65000 120000
Fixed Cost 1500000
Variable Cost 11648700
Total Cost 13148700

Objective Function 74880700

 Transportation Costs per Unit
Ointment Northwest Southwest
Upper Midwest Lower MidNortheast Southeast
Demand Chicago 3.16 3.16 1.84 2.02 2.88 2.98
65 Princeton 3.3 3.3 2.88 2.96 1.84 2.04
120 Atlanta 3.36 3.24 2.96 2.04 2.02 1.82
70 Los Angeles 2.18 1.84 3.16 3.16 3.36 3.3

Capacity (Units) Fixed Cost ($)

southeast Fixed Cost Capacity
12.98 5000000 5000000 5000000 5000000
12.04 2000000 2200000 0 0
11.82 2000000 2200000 0 0
13.3 2000000 2200000 0 0
600000

d Zones
southeast Units Supplied Plants (open=1)
600000 4500000 1
0 0 0
0 0 0
0 0 0
600000

Capacity (Units) Fixed Cost ($)

southeast Fixed Cost Capacity
22.98 1000000 1500000 1500000 1000000
22.04 1000000 1500000 0 0
21.82 1000000 1500000 0 0
23.3 1000000 1500000 0 0
70000

nd Zones
southeast Units Supplied Plants (open=1)
70000 515000 1
0 0 0
0 0 0
0 0 0
70000
 Regional Annual Demand at CoolWipes (in thousands)
Wipes Ointment Wipes
Zone Demand Demand Zone Demand
Northwest 500 50 Lower Midwest 800
Southwest 700 90 Northeast 1000
Upper Midwest 900 120 Southwest 600

WIPES
Transportation + Variable Cost per unit
Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 22.64 22.64 17.36 18.08 21.52
Princeton 23.2 23.2 21.52 21.84 17.36
Atlanta 23.44 22.96 21.84 18.16 18.08
Los Angeles 18.72 17.36 22.64 22.64 23.44
Demand 500000 700000 900000 800000 1000000

Wipes Units Transported from Plants to Demand Zones

Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 0 0 900000 800000 0
Princeton 0 0 0 0 0
Atlanta 0 0 0 0 1000000
Los Angeles 500000 700000 0 0 0
Units Received 500000 700000 900000 800000 1000000

Fixed Cost 9400000

Variable Cost 80048000
Total Cost 89448000

OINTMENT
Transportation + Variable Cost per unit
Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 32.64 32.64 27.36 28.08 31.52
Princeton 33.2 33.2 31.52 31.84 27.36
Atlanta 33.44 32.96 31.84 28.16 28.08
Los Angeles 28.72 27.36 32.64 32.64 33.44
Demand 50000 90000 120000 65000 120000

Oitment Units Transported from Plants to Demand Zones

Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 50000 90000 120000 65000 120000
Princeton 0 0 0 0 0
Atlanta 0 0 0 0 0
Los Angeles 0 8.7311E-11 0 0 0
Units Received 50000 90000 120000 65000 120000
Fixed Cost 1500000
Variable Cost 15694800
Total Cost 17194800

Objective Function 106642800

 Transportation Costs per Unit
Ointment Northwest SouthwestUpper Midwest Lower MidNortheast Southeast
Demand Chicago 12.64 12.64 7.36 8.08 11.52 11.92
65 Princeton 13.2 13.2 11.52 11.84 7.36 8.16
120 Atlanta 13.44 12.96 11.84 8.16 8.08 7.28
70 Los Angeles 8.72 7.36 12.64 12.64 13.44 13.2

Capacity (Units) Fixed Cost ($)

southeast Fixed Cost Capacity
21.92 5000000 5000000 5000000 5000000
18.16 2000000 2200000 0 0
17.28 2000000 2200000 2200000 2000000
23.2 2000000 2200000 2200000 2000000
600000

d Zones
southeast Units Supplied Plants (open=1) Transportation Costs per Unit
0 1700000 1 NorthwestSouthwest
Upper MidwestLower Mid
0 0 0 Chicago 6.32 6.32 3.68 4.04
600000 1600000 1 Princeton 6.6 6.6 5.76 5.92
0 1200000 1 Atlanta 6.72 6.48 5.92 4.08
600000 Los Angeles 4.36 3.68 6.32 6.32

Capacity (Units) Fixed Cost ($)

southeast Fixed Cost Capacity
31.92 1000000 1500000 1500000 1000000
28.16 1000000 1500000 0 0
27.28 1000000 1500000 0 0
33.2 1000000 1500000 0 0
70000

d Zones
southeast Units Supplied Plants (open=1)
70000 515000 1
0 0 0
0 0 0
0 0 0
70000
s per Unit
Northeast Southeast
5.76 5.96
3.68 4.08
4.04 3.64
6.72 6.6
 Regional Annual Demand at CoolWipes (in thousands)
Wipes Ointment Wipes
Zone Demand Demand Zone Demand
Northwest 500 50 Lower Midwest 800
Southwest 700 90 Northeast 1000
Upper Midwest 900 120 Southwest 600

WIPES
Transportation + Variable Cost per unit
Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 16.32 16.32 13.68 14.04 15.76
Princeton 16.6 16.6 15.76 15.92 13.68
Atlanta 16.72 16.48 15.92 14.08 14.04
Los Angeles 14.36 13.68 16.32 16.32 16.72
Demand 500000 700000 900000 800000 1000000

Wipes Units Transported from Plants to Demand Zones

Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 0 0 900000 800000 0
Princeton 0 0 0 0 0
Atlanta 0 0 0 0 1000000
Los Angeles 500000 700000 0 0 0
Units Received 500000 700000 900000 800000 1000000

Fixed Cost 6600000

Variable Cost 62524000
Total Cost 69124000

OINTMENT
Transportation + Variable Cost per unit
Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 26.32 26.32 23.68 24.04 25.76
Princeton 26.6 26.6 25.76 25.92 23.68
Atlanta 26.72 26.48 25.92 24.08 24.04
Los Angeles 24.36 23.68 26.32 26.32 26.72
Demand 50000 90000 120000 65000 120000

Oitment Units Transported from Plants to Demand Zones

Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 0 0 0 0 0
Princeton 0 0 0 0 0
Atlanta 0 0 0 0 0
Los Angeles 50000 90000 120000 65000 120000
Units Received 50000 90000 120000 65000 120000
Fixed Cost 1500000
Variable Cost 13286800
Total Cost 14786800

Objective Function 83910800

 Transportation Costs per Unit
Ointment Northwest Southwest
Upper Midwest Lower MidNortheast Southeast
Demand Chicago 6.32 6.32 3.68 4.04 5.76 5.96
65 Princeton 6.6 6.6 5.76 5.92 3.68 4.08
120 Atlanta 6.72 6.48 5.92 4.08 4.04 3.64
70 Los Angeles 4.36 3.68 6.32 6.32 6.72 6.6

Capacity (Units) Fixed Cost ($)

southeast Fixed Cost Capacity
15.96 2000000 2200000 2200000 2000000
14.08 2000000 2200000 0 0
13.64 2000000 2200000 2200000 2000000
16.6 2000000 2200000 2200000 2000000
600000

d Zones
southeast Units Supplied Plants (open=1)
0 1700000 1
0 0 0
600000 1600000 1
0 1200000 1
600000

Capacity (Units) Fixed Cost ($)

southeast Fixed Cost Capacity
25.96 1000000 1500000 0 0
24.08 1000000 1500000 0 0
23.64 1000000 1500000 0 0
26.6 1000000 1500000 1500000 1000000
70000

nd Zones
southeast Units Supplied Plants (open=1)
0 0 0
0 0 0
0 0 0
70000 515000 1
70000
 Regional Annual Demand at CoolWipes (in thousands)
Wipes Ointment Wipes
Zone Demand Demand Zone Demand
Northwest 500 50 Lower Midwest 800
Southwest 700 90 Northeast 1000
Upper Midwest 900 120 Southwest 600

WIPES
Transportation + Variable Cost per unit
Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 13.16 13.16 11.84 12.02 12.88
Princeton 13.3 13.3 12.88 12.96 11.84
Atlanta 13.36 13.24 12.96 12.04 12.02
Los Angeles 12.18 11.84 13.16 13.16 13.36
Demand 500000 700000 900000 800000 1000000

Wipes Units Transported from Plants to Demand Zones

Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 0 0 900000 800000 0
Princeton 0 0 0 0 1000000
Atlanta 0 0 0 0 0
Los Angeles 500000 700000 0 0 0
Units Received 500000 700000 900000 800000 1000000

Fixed Cost 6600000

Variable Cost 53714000
Total Cost 60314000

OINTMENT
Transportation + Variable Cost per unit
Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 23.16 23.16 21.84 22.02 22.88
Princeton 23.3 23.3 22.88 22.96 21.84
Atlanta 23.36 23.24 22.96 22.04 22.02
Los Angeles 22.18 21.84 23.16 23.16 23.36
Demand 50000 90000 120000 65000 120000

Oitment Units Transported from Plants to Demand Zones

Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 0 0 0 0 0
Princeton 0 0 0 0 0
Atlanta 50000 90000 120000 65000 120000
Los Angeles 0 0 0 0 0
Units Received 50000 90000 120000 65000 120000
Fixed Cost 1500000
Variable Cost 11617200
Total Cost 13117200

Objective Function 73431200

 Transportation Costs per Unit
Ointment Northwest Southwest
Upper Midwest Lower MidNortheast Southeast
Demand Chicago 3.16 3.16 1.84 2.02 2.88 2.98
65 Princeton 3.3 3.3 2.88 2.96 1.84 2.04
120 Atlanta 3.36 3.24 2.96 2.04 2.02 1.82
70 Los Angeles 2.18 1.84 3.16 3.16 3.36 3.3

Capacity (Units) Fixed Cost ($)

southeast Fixed Cost Capacity
12.98 2000000 2200000 2200000 2000000
12.04 2000000 2200000 2200000 2000000
11.82 2000000 2200000 0 0
13.3 2000000 2200000 2200000 2000000
600000

d Zones
southeast Units Supplied Plants (open=1)
0 1700000 1
600000 1600000 1
0 0 0
0 1200000 1
600000

Capacity (Units) Fixed Cost ($)

southeast Fixed Cost Capacity
22.98 1000000 1500000 0 0
22.04 1000000 1500000 0 0
21.82 1000000 1500000 1500000 1000000
23.3 1000000 1500000 0 0
70000

nd Zones
southeast Units Supplied Plants (open=1)
0 0 0
0 0 0
70000 515000 1
0 0 0
70000
 Regional Annual Demand at CoolWipes (in thousands)
Wipes Ointment Wipes
Zone Demand Demand Zone Demand
Northwest 500 50 Lower Midwest 800
Southwest 700 90 Northeast 1000
Upper Midwest 900 120 Southwest 600

WIPES
Transportation + Variable Cost per unit
Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 22.64 22.64 17.36 18.08 21.52
Princeton 23.2 23.2 21.52 21.84 17.36
Atlanta 23.44 22.96 21.84 18.16 18.08
Los Angeles 18.72 17.36 22.64 22.64 23.44
Demand 500000 700000 900000 800000 1000000

Wipes Units Transported from Plants to Demand Zones

Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 0 0 900000 800000 0
Princeton 0 0 0 0 0
Atlanta 0 0 0 0 1000000
Los Angeles 500000 700000 0 0 0
Units Received 500000 700000 900000 800000 1000000

Fixed Cost 6600000

Variable Cost 80048000
Total Cost 86648000

OINTMENT
Transportation + Variable Cost per unit
Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 32.64 32.64 27.36 28.08 31.52
Princeton 33.2 33.2 31.52 31.84 27.36
Atlanta 33.44 32.96 31.84 28.16 28.08
Los Angeles 28.72 27.36 32.64 32.64 33.44
Demand 50000 90000 120000 65000 120000

Oitment Units Transported from Plants to Demand Zones

Northwest Southwest Upper midwest Lower midwest Northeast
Chicago 0 0 0 0 0
Princeton 0 0 0 0 0
Atlanta 50000 90000 120000 65000 120000
Los Angeles 0 0 0 0 0
Units Received 50000 90000 120000 65000 120000
Fixed Cost 1500000
Variable Cost 15568800
Total Cost 17068800

Objective Function 103716800

 Transportation Costs per Unit
Ointment Northwest SouthwestUpper Midwest Lower MidNortheast Southeast
Demand Chicago 12.64 12.64 7.36 8.08 11.52 11.92
65 Princeton 13.2 13.2 11.52 11.84 7.36 8.16
120 Atlanta 13.44 12.96 11.84 8.16 8.08 7.28
70 Los Angeles 8.72 7.36 12.64 12.64 13.44 13.2

Capacity (Units) Fixed Cost ($)

southeast Fixed Cost Capacity
21.92 2000000 2200000 2200000 2000000
18.16 2000000 2200000 0 0
17.28 2000000 2200000 2200000 2000000
23.2 2000000 2200000 2200000 2000000
600000

d Zones
southeast Units Supplied Plants (open=1) Transportation Costs per Unit
0 1700000 1 NorthwestSouthwest
Upper MidwestLower Mid
0 0 0 Chicago 6.32 6.32 3.68 4.04
600000 1600000 1 Princeton 6.6 6.6 5.76 5.92
0 1200000 1 Atlanta 6.72 6.48 5.92 4.08
600000 Los Angeles 4.36 3.68 6.32 6.32

Capacity (Units) Fixed Cost ($)

southeast Fixed Cost Capacity
31.92 1000000 1500000 0 0
28.16 1000000 1500000 0 0
27.28 1000000 1500000 1500000 1000000
33.2 1000000 1500000 0 0
70000

d Zones
southeast Units Supplied Plants (open=1)
0 0 0
0 0 0
70000 515000 1
0 0 0
70000
s per Unit
Northeast Southeast
5.76 5.96
3.68 4.08
4.04 3.64
6.72 6.6