8 35 points Sunchem, a manufacturer of printing inks, has three chemical suppliers worldwide. Their locations and capacities are given below. They have located potential sites for manufacturing facilities in China, Philippines, Indonesia and Bangladesh. The capacities and the cost of producing and transporting 1 ton of ink to each facility from the suppliers is also given below. Given that their primary market is in North America and Europe, they have also located potential warehouse locations in Chicago, Louisville, Alberta, Vancouver, Amsterdam, Cologne and Leipzig, The capacities and transportation costs at each warehouse are given below. Management must come up with a plan to decide which facilities are going to be open and how to manage the whole supply chain. 1. Do the suppliers have unutilized capacities? How much are they? 2. Which manufacturing facilities are open? List any unused capacities at the manufacturing facilities. 3. Which warehouses are open? List any unused capacities at each warehouse. 4. What is the total cost of this supply chain? Supplier - Plants: Variable Transportation Costs Suppliers Plants Locations (Costs p/ton) China Philippines Indonesia Bangladesh China 2.8 2.51 2.8 India 3 3 2.8 2.71 Japan 3 3 3.21 3.21 Supplier capacity 2.91 60 2.9 70 3.2 70 Factory-Warehouse: Costs of Production & Transportations Costs Factories Warehouse Locations (Costs p/ton) Chicago Louisville Alberta Vancouver China 7.2 7.61 7.1 Philippines 6.6 7.7 8 8 Indonesia 7.9 7.21 7.91 Bangladesh 6.2 7.9 6.21 Amsterdam 7 6 7 7.6 Cologne 7.7 7.6 7.3 6.6 Leipzig 8 6.91 8 8 8 fixed cost factory capacity 7.2 350000 50 7.1 450000 65 7.7 380000 50 6.9 290000 55 Warehouse-Demand: Locations Warehousing & Transportation Costs Warehouse Demand Locations (Costs p/ton) North America Europe fixed cost warehouse capacity Chicago 3.2 4 300001 301 Louisville 3.1 3 40000 30 Alberta 3.6 3.1 350001 30 Vancouver 3.1 3.4 200001 301 Amsterdam 3.4 3.21 38000 30 Cologne 3.2 3.4 42000 30 Leipzig 3.5 3.3 390001 30 demand 75 105