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A Supply chain manager is considering opening a new factory in Abha, Jizan or Jeddah to produce high-quality products. He has collected the following
A Supply chain manager is considering opening a new factory in Abha, Jizan or Jeddah to produce high-quality products. He has collected the following costs data: Location Abha Jizan Jeddah Annual Fixed cost SR 200,000 SR 180,000 SR 170,000 Material SR 0.20 SR 0.25 SR 1.00 Per-Unit Costs Labor SR 0.40 SR 0.75 SR 1.00 Handling SR 0.40 SR 0.75 SR 1.00 a) Draw the total cost lines for each location. b) Over what range of volume should the company choose each location? c) What is the volume at the intersection of Jizan and Jeddah lines?
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Operations Management Processes And Supply Chains
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
13th Global Edition
129240986X, 978-1292409863
