Demand

Zone Wipes Ointment Total

Norrthwest NW 500 50 550
Southwest SW 700 90 790
Upper Midwest UM 900 120 1020
Lower Midwest LM 800 65 865
Northeast NE 1000 120 1120
Southeast SE 600 70 670

Transportation cost per unit NW SW UM

Chicago $6.32 $6.32 $63.68
Princeton $6.60 $6.60 $5.76
Atlanta $6.72 $6.48 $5.92
Los Angeles $4.36 $3.68 $6.32

Transportation cost per unit $

NW SW UM LM NE
Chicago 6.32 6.32 3.68 4.04 5.76

Demand
Wipes 500 700 900 800 1000
Ointment 50 90 120 65 120

Wipes
Fixed Cost 5000
Variable cost 45000
Transportation cost 23464
Total cost (Wipes) 73464

Ointment
Fixed Cost 1500
Variable cost 10300
Transportation cost 2697.4
Total cost (Ointment) 14497.4

Total Cost 87961.4

 Fixed cost Variable cost per unit
Wipes 5000 10
Ointment 1500 20

LM NE SE
$4.04 $5.76 $5.96
$5.92 $3.68 $4.08
$4.08 $4.04 $3.64
$6.32 $6.72 $6.60

SE
5.96

600
70
Wipes Transportation cost per unit NW SW UM
Chicago 0 0 900
Princeton 0 0 0
Atlanta 0 0 0
Los Angeles 500 700 0
500 700 900
Demand 500 700 900

Ointment Transportation cost per unit NW SW UM

Chicago 50 90 120
Princeton 0 0 0
Atlanta 0 0 0
Los Angeles 0 0 0
50 90 120
Demand 50 90 120

Transportation cost per unit $ NW SW UM

Chicago 6.32 6.32 3.68
Princeton 6.6 6.6 5.76
Atlanta 6.72 6.48 5.92
Los Angeles 4.36 3.68 6.32

Fixed cost Variable cost per unit

Wipes 5000 10
Ointment 1500 20

Wipes
Fixed Cost 9400
Variable cost 45000
Transportation cost 17524
Total cost (Wipes) 71924

Ointment
Fixed Cost 1500
Variable cost 10300
Transportation cost 2697.4
Total cost (Ointment) 14497.4
Total Cost 86421.4
LM NE SE Total Fixed cost multiplier Capacity
800 0 0 1700 1 5000
0 0 0 0 0 0
0 1000 600 1600 1 2000
0 0 0 1200 1 2000
800 1000 600
800 1000 600 4500

LM NE SE Total Fixed cost multiplier Capacity

65 120 70 515 1 1000
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
65 120 70
65 120 70 515

LM NE SE Transportation cost per unit for Wipes

4.04 5.76 5.96 Chicago
5.92 3.68 4.08 Princeton
4.08 4.04 3.64 Atlanta
6.32 6.72 6.6 Los Angeles

Transportation cost per unit for Ointment

Chicago
Princeton
Atlanta
Los Angeles
 Fixed cost
5000
2200
2200
2200

Fixed cost
1500
1500
1500
1500

nit for Wipes Total

6544
0
6224
4756 17524

nit for Ointment Total

2697.4
0
0
0 2697.4
Wipes Transportation cost per unit NW SW UM
Chicago 0 0 0
Princeton 0 0 0
Atlanta 0 0 0
Los Angeles 0 0 0
Demand 500 700 900

Ointment Transportation cost per unit NW SW UM

Chicago 0 0 0
Princeton 0 0 0
Atlanta 0 0 0
Los Angeles 0 0 0
Demand 50 90 120

Transportation cost per unit $ NW SW UM

Chicago $6.32 $6.32 $3.68
Princeton $6.60 $6.60 $5.76
Atlanta $6.72 $6.48 $5.92
Los Angeles $4.36 $3.68 $6.32

Fixed cost Variable cost per unit

Wipes 5000 10
Ointment 1500 20

Wipes
Fixed Cost 0
Variable cost 45000
Transportation cost 0
Total cost (Wipes) 45000

Ointment
Fixed Cost 0
Variable cost 10300
Transportation cost 0
Total cost (Ointment) 10300
Total Cost 55300
LM NE SE Total Fixed cost multiplier Capacity
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
800 1000 600 4500

LM NE SE Total Fixed cost multiplier Capacity

0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
65 120 70 515

LM NE SE
$4.04 $5.76 $5.96
$5.92 $3.68 $4.08
$4.08 $4.04 $3.64
$6.32 $6.72 $6.60
Fixed cost
5000
2200
2200
2200

Fixed cost
1500
1500
1500
1500
Wipes Transportation cost per unit NW SW UM
Chicago 500 700 900
Princeton 0 0 0
Atlanta 0 0 0
Los Angeles 0 0 0
500 700 900
Demand 500 700 900

Ointment Transportation cost per unit NW SW UM

Chicago 50 90 120
Princeton 0 0 0
Atlanta 0 0 0
Los Angeles 0 0 0
50 90 120
Demand 50 90 120

Transportation cost per unit NW SW UM

Chicago $6.32 $6.32 $3.68
Princeton $6.60 $6.60 $5.76
Atlanta $6.72 $6.48 $5.92
Los Angeles $4.36 $3.68 $6.32

Fixed cost Variable cost per unit

Wipes 5000 10
Ointment 1500 20

Consider the transportation cost as the half of current value

Wipes
Fixed Cost 5000
Variable cost 45000
Transportation cost 11732
Total cost (Wipes) 61732

Ointment
Fixed Cost 1500
Variable cost 10300
Transportation cost 1348.7
Total cost (Ointment) 13148.7
Total Cost 74880.7
LM NE SE Total Fixed cost multiplier Capacity
800 1000 600 4500 1 5000
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
800 1000 600
800 1000 600 4500

LM NE SE Total Fixed cost multiplier Capacity

65 120 70 515 1 1000
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
65 120 70
65 120 70 515

LM NE SE
$4.04 $5.76 $5.96
$5.92 $3.68 $4.08
$4.08 $4.04 $3.64
$6.32 $6.72 $6.60
Fixed cost
5000
2200
2200
2200

Fixed cost
1500
1500
1500
1500
Wipes Transportation cost per unit NW SW UM
Chicago 0 0 900
Princeton 0 0 0
Atlanta 0 0 0
Los Angeles 500 700 0
500 700 900
Demand 500 700 900

Ointment Transportation cost per unit NW SW UM

Chicago 50 90 120
Princeton 0 0 0
Atlanta 0 0 0
Los Angeles 0 0 0
50 90 120
Demand 50 90 120

Transportation cost per unit $ NW SW UM

Chicago 6.32 6.32 3.68
Princeton 6.6 6.6 5.76
Atlanta 6.72 6.48 5.92
Los Angeles 4.36 3.68 6.32

Fixed cost Variable cost per unit

Wipes 5000 10
Ointment 1500 20

When doubled the transportation cost

Wipes
Fixed Cost 9400
Variable cost 45000
Transportation cost 35048
Total cost (Wipes) 89448

Ointment
Fixed Cost 1500
Variable cost 10300
Transportation cost 5394.8
Total cost (Ointment) 17194.8
Total Cost 106642.8
LM NE SE Total Fixed cost multiplier Capacity
800 0 0 1700 1 5000
0 0 0 0 0 0
0 1000 600 1600 1 2000
0 0 0 1200 1 2000
800 1000 600
800 1000 600 4500

LM NE SE Total Fixed cost multiplier Capacity

65 120 70 515 1 1000
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
65 120 70
65 120 70 515

LM NE SE Transportation cost per unit for Wipes

4.04 5.76 5.96 Chicago
5.92 3.68 4.08 Princeton
4.08 4.04 3.64 Atlanta
6.32 6.72 6.6 Los Angeles

Transportation cost per unit for Ointment

Chicago
Princeton
Atlanta
Los Angeles

0
 Fixed cost
5000
2200
2200
2200

Fixed cost
1500
1500
1500
1500

nit for Wipes Total

6544
0
6224
4756 17524

nit for Ointment Total

2697.4
0
0
0 2697.4
Wipes Transportation cost per unit NW SW UM
Chicago 0 5.40091E-11 0
Princeton 421.7682384 99.9417048 821.7682436
Atlanta 78.23176162 100.0582953 78.23175643
Los Angeles 0 500 0
500 700 900
Demand 500 700 900

Ointment Transportation cost per unit NW SW UM

Chicago 50 89.99999933 120
Princeton 2.06481E-14 3.33747E-07 2.07692E-14
Atlanta 2.06481E-14 3.33747E-07 2.07692E-14
Los Angeles 0 0 0
50 90 120
Demand 50 90 120

Transportation cost per unit $ NW SW UM

Chicago 6.32 6.32 3.68
Princeton 6.6 6.6 5.76
Atlanta 6.72 6.48 5.92
Los Angeles 4.36 3.68 6.32

Fixed cost Variable cost per unit

Wipes 5000 10
Ointment 1500 20

Wipes
Fixed Cost 6600
Variable cost 45000
Transportation cost 19068
Total cost (Wipes) 70668

Ointment
Fixed Cost 1500
Variable cost 10300
Transportation cost 2986.8
Total cost (Ointment) 14786.8
Total Cost 85454.8
LM NE SE Total Fixed cost multiplier
2.906179E-11 8.38979E-11 0 1.66969E-10 0
1.0359867E-13 656.5218133 5.9921246E-14 2000 1
800 343.4781867 599.99999988 2000 1
0 0 1.2272625E-07 500 1
800 1000 600
800 1000 600 4500

LM NE SE Total Fixed cost multiplier

64.999998028 120 70.000001956 514.9999993 1
0 2.07692E-14 2.3325666E-10 3.3398E-07 0
0 2.07692E-14 2.3325666E-10 3.3398E-07 0
1.9564771E-06 0 0 1.95648E-06 0
64.999999985 120 70.000001956
65 120 70 515

LM NE SE
4.04 5.76 5.96
5.92 3.68 4.08
4.08 4.04 3.64
6.32 6.72 6.6
Capacity Fixed cost
0 5000
2000 2200
2000 2200
2000 2200

Capacity Fixed cost

1000 1500
0 1500
0 1500
0 1500
Wipes Transportation cost per unit NW SW UM
Chicago 1.17498E-11 0 0
Princeton 0 5.55687E-11 900
Atlanta 0 0 0
Los Angeles 500 700 0
500 700 900
Demand 500 700 900

Ointment Transportation cost per unit NW SW UM

Chicago 0 0 0
Princeton 0 0 0
Atlanta 50 90 120
Los Angeles 0 0 0
50 90 120
Demand 50 90 120

Transportation cost per unit $ NW SW UM

Chicago 6.32 6.32 3.68
Princeton 6.6 6.6 5.76
Atlanta 6.72 6.48 5.92
Los Angeles 4.36 3.68 6.32

Fixed cost Variable cost per unit

Wipes 5000 10
Ointment 1500 20

Consider the transportation cost as the half of current value

Wipes
Fixed Cost 6600
Variable cost 45000
Transportation cost 9534
Total cost (Wipes) 61134

Ointment
Fixed Cost 1500
Variable cost 10300
Transportation cost 1317.2
Total cost (Ointment) 13117.2
Total Cost 74251.2
LM NE SE Total Fixed cost multiplier Capacity
0 0 0 1.17498E-11 0 0
1.75522E-10 1000 0 1900 1 2000
800 0 600 1400 1 2000
0 0 0 1200 1 2000
800 1000 600
800 1000 600 4500

LM NE SE Total Fixed cost multiplier Capacity

0 0 0 0 0 0
0 0 0 0 0 0
65 120 70 515 1 1000
0 0 0 0 0 0
65 120 70
65 120 70 515

LM NE SE Transportation cost per unit for Wipes

4.04 5.76 5.96 Chicago
5.92 3.68 4.08 Princeton
4.08 4.04 3.64 Atlanta
6.32 6.72 6.6 Los Angeles

Transportation cost per unit for Ointment

Chicago
Princeton
Atlanta
Los Angeles
 Fixed cost
5000
2200
2200
2200

Fixed cost
1500
1500
1500
1500

nit for Wipes Total

7.4259E-11
8864
5448
4756 19068

nit for Ointment Total

0
0
2634.4
0 2634.4
Wipes Transportation cost per unit NW SW UM
Chicago 0 0 900
Princeton 0 0 0
Atlanta 0 0 0
Los Angeles 500 700 0
500 700 900
Demand 500 700 900

Ointment Transportation cost per unit NW SW UM

Chicago 0 0 0
Princeton 0 0 0
Atlanta 0 0 0
Los Angeles 50 90 120
50 90 120
Demand 50 90 120

Transportation cost per unit $ NW SW UM

Chicago 12.64 12.64 7.36
Princeton 13.2 13.2 11.52
Atlanta 13.44 12.96 11.84
Los Angeles 8.72 7.36 12.64

Fixed cost Variable cost per unit

Wipes 5000 10
Ointment 1500 20

Consider the transportation cost as the half of current value

Wipes
Fixed Cost 9400
Variable cost 45000
Transportation cost 35048
Total cost (Wipes) 89448

Ointment
Fixed Cost 1500
Variable cost 10300
Transportation cost 5268.8
Total cost (Ointment) 17068.8
Total Cost 106516.8
LM NE SE Total Fixed cost multiplier Capacity
800 0 0 1700 1 5000
0 0 0 0 0 0
0 1000 600 1600 1 2000
0 0 0 1200 1 2000
800 1000 600
800 1000 600 4500

LM NE SE Total Fixed cost multiplier Capacity

0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 1 1000
65 120 70 515 0 0
65 120 70
65 120 70 515

LM NE SE
8.08 11.52 11.92
11.84 7.36 8.16
8.16 8.08 7.28
12.64 13.44 13.2
Fixed cost
5000
2200
2200
2200

Fixed cost
1500
1500
1500
1500