Background:

Customer ABC is evaluating various supply chain strategies for their next generation server product for the US Market. Their current manufacturing location is based in Columbus, Ohio. The Columbus facility makes all the components and final configuration/assembly of the server. The end customer points are the top 4 locations (states) in the US by Population. The annual volume of demand for this server product in the US is estimated to be 50K units. The product flows directly from Columbus to the end customer locations. The mode of transport in general is FTL with 5% of the product shipments expedited via Air. BOM Structure# The BOM of the server product is composed of the following components: 2 PCBA's Power Supply Unit Chassis Backplane Fan Tray Alternative Scenarios# The customer has expressed interest in setting up an alternative manufacturing facility either in Guadalajara, Mexico or Zhuhai China. With the proposed Guadalajara solution, the split in regular/expedited shipments will be the same as in the case of shipments from the Columbus facility to US customers. With the proposed Zhuhai solution, there is to be a DC located in Fontana, California where product is warehoused before being shipped to final end customer locations. The amount of inventory held in the Fontana DC facility is 21 DOI to cover for transit time of shipments from China. It is estimated that 10% of shipments from China will need to be expedited and 10% of shipments out of the Fontana DC are expedited as well. All manufacturing facilities are to hold 2 weeks worth of components in inventory. No FG inventory is held in any of the locations apart from the DC in Fontana.

Product Properties

Product	Inventory Value (USD)	Weight (lbs)	Items Per Pallet
Server	12,000	153	4
Chassis	750	100	8
PCBA	4,000	5	120
Blackplane	800	25	20
PSU	200	8	80
Fan Tray	250	10	48

Material & Value Added Costs

Facility	Product	Material Costs (USD)	Value (USD)
Columbus	Server		325.00
	Chassis	575.00	150.00
	PCBA	3,600.00	1,100.00
	Backplane	648.00	152.00
	PSU	164.00	36.00
	Fan Tray	200.00	50.00
Zhuhai	Server		225.00
	Chassis	575.00	110.00
	PCBA	3,500.00	850.00
	Backplane	600.00	100.00
	PSU	160.00	25.00
	Fan Tray	200.00	40.00
Guadalajara	Server		250.00
	Chassis	560.00	120.00
	PCBA	3,600.00	900.00
	Backplane	650.00	120.00
	PSU	160.00	30.00
	Fan Tray	200.00	45.00

Fixed Costs of Sites

	Columbus	Zhuhai	Guadlajara	Fontana DC
Fixed Costs (USD)	1,200,000	1,080,000	1,134,000	200,000

Warehousing Costs:

Fontana DC	Warehousing costs (USD)
Dispatching Storage Unit	2.00
Monthly Cost per Storage Unit	2.00
Reception of Storage Unit	1.50

Use the SimFlex Lite tool to evaluate the trade-offs among the proposed supply chains. Where would you locate the manufacturing facilityColumbus, Guadalajara, or Zhuhai? Provide a brief report with supporting tables to justify your choice.

****Please show what was used for the production cost for all 3.