Question 1

Demand Transportation Cost

Zone
Wipes Ointment Chicago Princeton Atlanta Los Angeles
North West 500 50 $ 6.32 $ 6.60 $ 6.72 $ 4.36
South West 700 90 $ 6.32 $ 6.60 $ 6.48 $ 3.68
Upper Midwest 900 120 $ 3.68 $ 5.76 $ 5.92 $ 6.32
Lower Midwest 800 65 $ 4.04 $ 5.92 $ 4.08 $ 6.32
North East 1000 120 $ 5.76 $ 3.68 $ 4.04 $ 6.72
South East 600 70 $ 5.96 $ 4.08 $ 3.64 $ 6.60

Wipes Ointment
Fixed Cost 5000 1500
Variable Cost 45000 10300
Transportation Cost 23464 2697.4
Total Cost 73464 14497.4 $ 87,961.40 Total
 Question 2
Regional Annual Demand (1000s)
Zone Northwest Southwest Upper Midwest Lower Midwest
Wipes Demand 500 700 900 800
Ointment Demand 50 90 120 65

Transportation Costs / Unit

Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago $ 6.32 $ 6.32 $ 3.68 $ 4.04
Princeton $ 6.60 $ 6.60 $ 5.76 $ 5.90
Atlanta $ 6.72 $ 6.48 $ 5.92 $ 4.08
Los Angeles $ 4.36 $ 3.68 $ 6.32 $ 6.32

Plant Costs (1000)

Wipes Ointment
Plant Fixed Costs Variable Costs Capacity Fixed Costs
Chicago $ 5,000.00 $ 10.00 5000 $ 1,500.00
Princeton $ 2,200.00 $ 10.00 2000 $ 1,500.00
Atlanta $ 2,200.00 $ 10.00 2000 $ 1,500.00
Los Angeles $ 2,200.00 $ 10.00 2000 $ 1,500.00

Wipes
Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago 0 0 900 800
Princeton 0 0 0 0
Atlanta 0 0 0 0
Los Angeles 500 700 0 0
Demand not fulfilled 0 0 0 0

Ointment
Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago 50 90 120 65
Princeton 0 0 0 0
Atlanta 0 0 0 0
Los Angeles 0 0 0 0
Demand not fulfilled 0 0 0 0

Total Cost $ 86,325.40

Question 2

Northeast Southeast Total

1000 600 4500
120 70 515

Northeast Southeast
$ 5.76 $ 5.96
$ 3.68 $ 4.08
$ 4.04 $ 3.64
$ 6.72 $ 6.60

Ointment
Variable Costs Capacity
$ 20.00 1000
$ 20.00 1000
$ 20.00 1000
$ 20.00 1000

Northeast Southeast Plant Open/Closed Capacity left Demand Fulfilled

0 0 1 3300 1700
1000 600 1 400 1600
0 0 0 0 0
0 0 1 800 1200
0 0

Northeast Southeast Plant Open/Closed Capacity left Demand Fulfilled

120 70 1 485 515
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0
 Questi
Regional Annual Demand (1000s)
Zone Northwest Southwest Upper Midwest Lower Midwest
Wipes Demand 500 700 900 800
Ointment Demand 50 90 120 65

Transportation Costs per unit

Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago $ 3.16 $ 3.16 $ 1.84 $ 2.02
Princeton $ 3.30 $ 3.30 $ 2.88 $ 2.95
Atlanta $ 3.36 $ 3.24 $ 2.96 $ 2.04
Los Angeles $ 2.18 $ 1.84 $ 3.16 $ 3.16

Plant Costs (1000)

Wipes Ointment
Plant Fixed Costs Variable Costs Capacity Fixed Costs
Chicago $ 5,000.00 $ 10.00 5000 $ 1,500.00
Princeton $ 2,200.00 $ 10.00 2000 $ 1,500.00
Atlanta $ 2,200.00 $ 10.00 2000 $ 1,500.00
Los Angeles $ 2,200.00 $ 10.00 2000 $ 1,500.00

Wipes
Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago 500 700 900 800
Princeton 0 0 0 0
Atlanta 0 0 0 0
Los Angeles 0 0 0 0
Demand not fulfilled 0 0 0 0

Ointment
Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago 50 90 120 65
Princeton 0 0 0 0
Atlanta 0 0 0 0
Los Angeles 0 0 0 0
Demand not fulfilled 0 0 0 0

Total Cost $ 74,880.70

 Question 2.1

Northeast Southeast Total

1000 600 4500
120 70 515

Transportation Cost factor 0.5

Northeast Southeast Northwest Southwest Upper Mid
$ 2.88 $ 2.98 $ 6.32 $ 6.32 $ 3.68
$ 1.84 $ 2.04 $ 6.60 $ 6.60 $ 5.76
$ 2.02 $ 1.82 $ 6.72 $ 6.48 $ 5.92
$ 3.36 $ 3.30 $ 4.36 $ 3.68 $ 6.32

Ointment
Variable Costs Capacity
$ 20.00 1000
$ 20.00 1000
$ 20.00 1000
$ 20.00 1000

Northeast Southeast Plant Open/Closed Capacity left Demand Fulfilled

1000 600 1 499.999999999999 4500
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0

Northeast Southeast Plant Open/Closed Capacity left Demand Fulfilled

120 70 1 485 515
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0
Lower MidNortheast Southeast
$ 4.04 $ 5.76 $ 5.96
$ 5.90 $ 3.68 $ 4.08
$ 4.08 $ 4.04 $ 3.64
$ 6.32 $ 6.72 $ 6.60
 Questi
Regional Annual Demand (1000s)
Zone Northwest Southwest Upper Midwest Lower Midwest
Wipes Demand 500 700 900 800
Ointment Demand 50 90 120 65

Transportation Costs per unit

Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago $ 12.64 $ 12.64 $ 7.36 $ 8.08
Princeton $ 13.20 $ 13.20 $ 11.52 $ 11.80
Atlanta $ 13.44 $ 12.96 $ 11.84 $ 8.16
Los Angeles $ 8.72 $ 7.36 $ 12.64 $ 12.64

Plant Costs (1000)

Wipes Ointment
Plant Fixed Costs Variable Costs Capacity Fixed Costs
Chicago $ 5,000.00 $ 10.00 5000 $ 1,500.00
Princeton $ 2,200.00 $ 10.00 2000 $ 1,500.00
Atlanta $ 2,200.00 $ 10.00 2000 $ 1,500.00
Los Angeles $ 2,200.00 $ 10.00 2000 $ 1,500.00

Wipes
Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago 0 0 900 800
Princeton 0 0 0 0
Atlanta 0 0 0 0
Los Angeles 500 700 0 0
Demand not fulfilled 0 0 0 0

Ointment
Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago 50 90 120 65
Princeton 0 0 0 0
Atlanta 0 0 0 0
Los Angeles 0 0 0 0
Demand not fulfilled 0 0 0 0

Total Cost $ 106,450.80

 Question 2.2

Northeast Southeast Total

1000 600 4500
120 70 515

Transportation Cost factor 2

Northeast Southeast Northwest Southwest Upper Mid
$ 11.52 $ 11.92 $ 6.32 $ 6.32 $ 3.68
$ 7.36 $ 8.16 $ 6.60 $ 6.60 $ 5.76
$ 8.08 $ 7.28 $ 6.72 $ 6.48 $ 5.92
$ 13.44 $ 13.20 $ 4.36 $ 3.68 $ 6.32

Ointment
Variable Costs Capacity
$ 20.00 1000
$ 20.00 1000
$ 20.00 1000
$ 20.00 1000

Northeast Southeast Plant Open/Closed Capacity left Demand Fulfilled

0 0 1 3300 1700
1000 600 1 400 1600
0 0 0 0 0
0 0 1 800 1200
0 0

Northeast Southeast Plant Open/Closed Capacity left Demand Fulfilled

120 70 1 485 515
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0
Lower MidNortheast Southeast
$ 4.04 $ 5.76 $ 5.96
$ 5.90 $ 3.68 $ 4.08
$ 4.08 $ 4.04 $ 3.64
$ 6.32 $ 6.72 $ 6.60
 Questi
Regional Annual Demand (1000s)
Zone Northwest Southwest Upper Midwest Lower Midwest
Wipes Demand 500 700 900 800
Ointment Demand 50 90 120 65

Transportation Costs per unit

Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago $ 6.32 $ 6.32 $ 3.68 $ 4.04
Princeton $ 6.60 $ 6.60 $ 5.76 $ 5.90
Atlanta $ 6.72 $ 6.48 $ 5.92 $ 4.08
Los Angeles $ 4.36 $ 3.68 $ 6.32 $ 6.32

Plant Costs (1000)

Wipes Ointment
Plant Fixed Costs Variable Costs Capacity Fixed Costs
Chicago $ 5,000.00 $ 10.00 5000 $ 1,500.00
Princeton $ 2,200.00 $ 10.00 2000 $ 1,500.00
Atlanta $ 2,200.00 $ 10.00 2000 $ 1,500.00
Los Angeles $ 2,200.00 $ 10.00 2000 $ 1,500.00

Wipes
Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago 0 0 900 800
Princeton 0 0 0 0
Atlanta 0 0 0 0
Los Angeles 500 700 0 0
Demand not fulfilled 0 0 0 0

Ointment
Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago 50 90 120 65
Princeton 0 0 0 0
Atlanta 0 0 0 0
Los Angeles 0 0 0 0
Demand not fulfilled 0 0 0 0

Total Cost $ 86,325.40

 Question 3.1

Northeast Southeast Total

1000 600 4500
120 70 515

Transportation Cost factor 1

Northeast Southeast Northwest Southwest Upper Mid
$ 5.76 $ 5.96 $ 6.32 $ 6.32 $ 3.68
$ 3.68 $ 4.08 $ 6.60 $ 6.60 $ 5.76
$ 4.04 $ 3.64 $ 6.72 $ 6.48 $ 5.92
$ 6.72 $ 6.60 $ 4.36 $ 3.68 $ 6.32

Ointment
Variable Costs Capacity
$ 20.00 1000
$ 20.00 1000
$ 20.00 1000
$ 20.00 1000

Northeast Southeast Plant Open/Closed Capacity left Demand Fulfilled

0 0 1 3300 1700
1000 600 1 400 1600
0 0 0 0 0
0 0 1 800 1200
0 0

Northeast Southeast Plant Open/Closed Capacity left Demand Fulfilled

120 70 1 485 515
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0
Lower MidNortheast Southeast
$ 4.04 $ 5.76 $ 5.96
$ 5.90 $ 3.68 $ 4.08
$ 4.08 $ 4.04 $ 3.64
$ 6.32 $ 6.72 $ 6.60
 Quest
Regional Annual Demand (1000s)
Zone Northwest Southwest Upper Midwest Lower Midwest
Wipes Demand 500 700 900 800
Ointment Demand 50 90 120 65

Transportation Costs per unit

Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago $ 3.16 $ 3.16 $ 1.84 $ 2.02
Princeton $ 3.30 $ 3.30 $ 2.88 $ 2.95
Atlanta $ 3.36 $ 3.24 $ 2.96 $ 2.04
Los Angeles $ 2.18 $ 1.84 $ 3.16 $ 3.16

Plant Costs (1000)

Wipes Ointment
Plant Fixed Costs Variable Costs Capacity Fixed Costs
Chicago $ 5,000.00 $ 10.00 5000 $ 1,500.00
Princeton $ 2,200.00 $ 10.00 2000 $ 1,500.00
Atlanta $ 2,200.00 $ 10.00 2000 $ 1,500.00
Los Angeles $ 2,200.00 $ 10.00 2000 $ 1,500.00

Wipes
Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago 500 700 900 800
Princeton 0 0 0 0
Atlanta 0 0 0 0
Los Angeles 0 0 0 0
Demand not fulfilled 0 0 0 0

Ointment
Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago 50 90 0 65
Princeton 0 0 0 0
Atlanta 0 0 0 0
Los Angeles 0 0 0 0
Demand not fulfilled 0 0 0 0

Total Cost $ 72,259.90

 Question 3.2

Northeast Southeast Total

1000 600 4500
120 70 515

Transportation Cost factor 0.5

Northeast Southeast Northwest Southwest
$ 2.88 $ 2.98 $ 6.32 $ 6.32
$ 1.84 $ 2.04 $ 6.60 $ 6.60
$ 2.02 $ 1.82 $ 6.72 $ 6.48
$ 3.36 $ 3.30 $ 4.36 $ 3.68

Ointment
Variable Costs Capacity
$ 20.00 1000
$ 20.00 1000
$ 20.00 1000
$ 20.00 1000

Northeast Southeast Plant Open/Closed Capacity left Demand Fulfilled

1000 600 1 499.999999999999 4500
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0

Northeast Southeast Plant Open/Closed Capacity left Demand Fulfilled

120 70 1 605 395
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0
Upper MidLower MidNortheast Southeast
$ 3.68 $ 4.04 $ 5.76 $ 5.96
$ 5.76 $ 5.90 $ 3.68 $ 4.08
$ 5.92 $ 4.08 $ 4.04 $ 3.64
$ 6.32 $ 6.32 $ 6.72 $ 6.60
 Questi
Regional Annual Demand (1000s)
Zone Northwest Southwest Upper Midwest Lower Midwest
Wipes Demand 500 700 900 800
Ointment Demand 50 90 120 65

Transportation Costs per unit

Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago $ 12.64 $ 12.64 $ 7.36 $ 8.08
Princeton $ 13.20 $ 13.20 $ 11.52 $ 11.80
Atlanta $ 13.44 $ 12.96 $ 11.84 $ 8.16
Los Angeles $ 8.72 $ 7.36 $ 12.64 $ 12.64

Plant Costs (1000)

Wipes Ointment
Plant Fixed Costs Variable Costs Capacity Fixed Costs
Chicago $ 5,000.00 $ 10.00 5000 $ 1,500.00
Princeton $ 2,200.00 $ 10.00 2000 $ 1,500.00
Atlanta $ 2,200.00 $ 10.00 2000 $ 1,500.00
Los Angeles $ 2,200.00 $ 10.00 2000 $ 1,500.00

Wipes
Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago 0 0 900 800
Princeton 0 0 0 0
Atlanta 0 0 0 0
Los Angeles 500 700 0 0
Demand not fulfilled 0 0 0 0

Ointment
Zone Northwest Southwest Upper Midwest Lower Midwest
Chicago 50 90 0 65
Princeton 0 0 0 0
Atlanta 0 0 0 0
Los Angeles 0 0 0 0
Demand not fulfilled 0 0 0 0

Total Cost $ 103,167.60

 Question 3.3

Northeast Southeast Total

1000 600 4500
120 70 515

Transportation Cost factor 2

Northeast Southeast Northwest Southwest Upper Mid
$ 11.52 $ 11.92 $ 6.32 $ 6.32 $ 3.68
$ 7.36 $ 8.16 $ 6.60 $ 6.60 $ 5.76
$ 8.08 $ 7.28 $ 6.72 $ 6.48 $ 5.92
$ 13.44 $ 13.20 $ 4.36 $ 3.68 $ 6.32

Ointment
Variable Costs Capacity
$ 20.00 1000
$ 20.00 1000
$ 20.00 1000
$ 20.00 1000

Northeast Southeast Plant Open/Closed Capacity left Demand Fulfilled

0 0 1 3300 1700
1000 600 1 400 1600
0 0 0 0 0
0 0 1 800 1200
0 0

Northeast Southeast Plant Open/Closed Capacity left Demand Fulfilled

120 70 1 605 395
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0
Lower MidNortheast Southeast
$ 4.04 $ 5.76 $ 5.96
$ 5.90 $ 3.68 $ 4.08
$ 4.08 $ 4.04 $ 3.64
$ 6.32 $ 6.72 $ 6.60
 Case Study 3
Question Total Cost
Q1 $ 87,961.40
Q2.1 $ 86,325.40
Q2.2 $ 74,880.70
Q2.3 $ 106,450.80
Q3.1 $ 86,325.40
Q3.2 $ 72,259.90
Q3.3 $ 103,167.60
s