Can you please answer these questions

Designing the Production Network at CoolWipes Matt O'Grady. vice president of supply chain at CoolWipes thought that his current production and distribution net work not appropriate giun the significant increase in transmutation costs over the past few years. Compared to when company had set up its vyoduction fwility in Olicago. transBM1ation costs increased by a Of nuve than Knar and were exvxcted to continue growing in tlR next few years. A quick decision on building one or more new plants could save the company significant in transmrtatiml in the future. CoolWipes CoolWivrs was founded in the late 1980s and produced baby Wipes and diaper ointment. Demand for the two products was as shown in Table 5-18. 'Ille company currently had one titctory in Chicago that produced both products for the entire country. The Wipes line in the Chicago facility had a capacity of million units. an annualized fixed Cost of SS million a year. and a variable cost of SIO per unit. The ointment line in the Chicago had a capacity Of I million units. an annualized fixed cost of Sl.5 million a year. and a variable cost of S20 per unit. current transportation costs per unit (for both Wipes and ointment) are shown in Table 5-19. New Network Options Matt had identified Princeton. New Jersey: Atlanta: and I-os Angeles as potential sites for new plants. Each new plant could have a Wipes line. an ointment line. or both. A new wipes line had a capacity of 2 million units. an 1 gable 5-18 Regional Demand at CoolWipes (in '0009 Wipes Ointment Demand Demand Northwest Southwest Upper Midwest 1 ble 5-19 90 900 Lower Mid.vest Northeast Southeast per nit Upper South west M idwest Chicago Princeton Atlanta LOS Angeles Northwest $6.32 $6.60 $6.72 $4.36 S6,32 3660 S648 S36S Lower Midwest $4.04 $5.92 $4.08 S6.32 Wipes Demand N ortheast S5,76 S3,68 S404 So 72 Ointmen t Demand 70 So utheast sr..96 $3.64 $6.60 annual fixed cost of S2_2 million. and a variable produc- tion cost of SIO per unit. A new ointment line had a capacity of I million units. an annual fixed cost of Sl.5 million. and a variable cost of S20 per unit. The current transportation costs per unit are shown in Table 5-19. Matt had to decide Whether to build a new plant and if So. which pmduction lines to put into the new plant. Questions l. What the annual COSI Of serving the entire nation from Chicago? 2. Do you recommend adding any plant(s)? If so. where should the plant(s) be built and what lines should 53,68 55,76 55.92 3. included? that thc Chicago plant Will be main. taincd at its capacity could run at lower utilization. Would your decision be different if transvxula lion costs are half of their current value? What if they were double Value? If Matt could design a new rxtwork from scratch (assume he did not have the Chicago plant but could INIiId it al the cost and capacity specified in the ease). what production network Assume that any plants built besides Chicago would be at thc cost and capacity under new options. your decision different if transponation costs were half of their current value? What if they were double their Value'!