Anthony Gms 805 - Assignment 1 PDF

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CoolWipes Case Study Assignment Simerprit Bajwa- 500517797 Navtaj Dhaliwal- 500572780 Emily Leduc - 500681890 Anvesha Patel-500511808

GMS 805: Section 011 Submitted to: Dr. Nikoofal Ryerson University April 13, 2018

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Question 1 What is the annual cost of serving (production and transportation) the entire nation from Chicago?

Total Cost =¿ Costs+(Variable costs x Units)+¿ TransportationCosts per unit ∈each region x Units transported (¿ each region) Total Cost (Wipes) = ¿ Costs for wipes +(Variable costs for wipes x Units)+¿ TransportationCosts per unit ∈each region x Units transported (¿ each region) = $73 464 000 Total Cost (ointment) = ¿ Costs for ointment +(Variable costs for ointment x Units)+¿

TransportationCosts per unit ∈each region x Units transported (¿ each region) =$14 497 000 Total Cost (Wipes)+ Total Cost (Ointment) = $87 961 000 Therefore, the annual cost of serving (production and transportation) the entire nation from Chicago is $ 87 961 000.

Question 2 Do you recommend adding any plant(s)? If so, where should the plant(s) be built and what lines should be included? Please write the mathematical model, including cost function and required constraints. All demand should be met in each market.

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Answer: Based on the solver from excel we do not recommend adding any plants due to the fact that the plant in Chicago has the ability to handle the total capacity (5000000). Furthermore, the transportation costs of Northwest, Southwest, Northeast is being higher in Chicago, the total cost to produce is cheaper compared to opening a new plant in Princeton, Atlanta or LA which totals $40,726.60 according to the solver. This shows that is is cheaper to produce at the Chicago plant despite the constraints, as Chicago having a larger capacity is able to produce for the Wipes and Ointment without having to open a new plant. Operating solely from Chicago is beneficial for the company as it will allow lower operating costs. Question 3

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If the manager could design a new network from scratch (assume the manager did not have the Chicago plant but could build it at the cost and capacity specified in the case), what production network would you recommend?...