1- Sunchem, a manufacturer of printing inks, has five manufacturing plants worldwide. Their locations and capacities are shown in the following table with the cost of producing 1 ton of ink at each facility. The major markets for the inks are North America, Europe, Japan, South America, and the rest of Asia. Demand at each market, and transportation costs from each plant to each market are shown in the table as well. Management must come up with a production plan for the next year. a. How much should each plant produce and which markets should each plant supply? b. Can adding 10 tons of capacity in just one plant reduce costs? Which plant is the better choice for adding the capacity? N. America Europe Japan S. America Rest of Capacity Production (tons/year) (cost/ton) Asia USA $600 $1300 $2000 $1200 $1700 185 $10000 Germany $1300 $600 $1400 $1400 $1300 475 $7,530 Japan $2000 $1400 $300 $2100 $900 50 $16,740 Brazil $1200 $1400 $2100 $800 $2100 200 $7,306 India $2200 $1300 $1000 $2300 $800 80 $9,200 Demand 270 200 120 190 100 (tons/year) 1- Sunchem, a manufacturer of printing inks, has five manufacturing plants worldwide. Their locations and capacities are shown in the following table with the cost of producing 1 ton of ink at each facility. The major markets for the inks are North America, Europe, Japan, South America, and the rest of Asia. Demand at each market, and transportation costs from each plant to each market are shown in the table as well. Management must come up with a production plan for the next year. a. How much should each plant produce and which markets should each plant supply? b. Can adding 10 tons of capacity in just one plant reduce costs? Which plant is the better choice for adding the capacity? N. America Europe Japan S. America Rest of Capacity Production (tons/year) (cost/ton) Asia USA $600 $1300 $2000 $1200 $1700 185 $10000 Germany $1300 $600 $1400 $1400 $1300 475 $7,530 Japan $2000 $1400 $300 $2100 $900 50 $16,740 Brazil $1200 $1400 $2100 $800 $2100 200 $7,306 India $2200 $1300 $1000 $2300 $800 80 $9,200 Demand 270 200 120 190 100 (tons/year)