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a) Company X wants to set-up a new manufacturing facility in Ireland to service customers. Based on the source and market information provided above, calculate
a) Company X wants to set-up a new manufacturing facility in Ireland to service customers. Based on the source and market information provided above, calculate the least-cost center/location on the grid. Which source center would you recommend?
b) It is anticipated that in 2020 the Waterford market will grow by 250 tons and that this will be served from Dublin, will this affect the position of the least cost center/location on the grid?
c) In your opinion what are some strengths and weaknesses to this technique.
Sources | Rate/ton-km | Tons | Horizontal | Vertical |
Limerick (S1) | 0.85 | 650 | 800 | 1120 |
Dublin (S2) | 0.9 | 350 | 850 | 1110 |
Cork (S3) | 0.7 | 400 | 650 | 850 |
Market | Rate/ton-km | Tons | Horizontal | Vertical |
Waterford (m1) | 3.5 | 152 | 600 | 500 |
Kilkenny (m2) | 3.5 | 253 | 1050 | 1200 |
Nenagh (m3) | 3.5 | 450 | 800 | 300 |
Belfast (m4) | 3.5 | 250 | 925 | 975 |
Galway (m5) | 3.5 | 400 | 1000 | 1080 |
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