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Global Electronics. Inc. Manufacturing Planning Problem Constants Direct Material Cost: Circuit Board $8.00 Case $1.00 Battery $3.00 Touchscreen $7.00 Air Freight Shipping Cost: (Cost per
Global Electronics. Inc. Manufacturing Planning Problem | |||||||||
Constants | |||||||||
Direct Material Cost: | |||||||||
Circuit Board | $8.00 | ||||||||
Case | $1.00 | ||||||||
Battery | $3.00 | ||||||||
Touchscreen | $7.00 | ||||||||
Air Freight Shipping Cost: | (Cost per mile for a 10,000 unit container) | ||||||||
Freight-In (Parts) | $1.00 | ||||||||
Freight-Out (Finished Goods) | $1.20 | ||||||||
Other Costs by Mfg Site: | Phoenix | Shanghai | Monterrey | Brussels | |||||
Direct Labor Cost per Unit | $1.00 | $0.40 | $0.50 | $1.20 | |||||
Overhead Cost per Unit | $3.00 | $1.00 | $2.00 | $4.00 | |||||
Site Capacity (units per month) | 500,000 | 200,000 | 400,000 | 250,000 | |||||
Monthly Demand by Distribution Center (finished units): | |||||||||
Atlanta, U.S. | 220,000 | ||||||||
Lagos, Nigeria | 180,000 | ||||||||
Rio De Janeiro, Brazil | 210,000 | ||||||||
Osaka, Japan | 400,000 | ||||||||
Frankfurt, Germany | 200,000 | ||||||||
Air Freight Distance Tables | To/From: Manufacturing Site | ||||||||
(in miles) | Phoenix | Shanghai | Monterrey | Brussels | |||||
From Supplier Site | |||||||||
Singapore (Battery) | 6,515 | 665 | 7,340 | 4,960 | |||||
Beijing (circuit Board) | 1,255 | 8,035 | 440 | 5,755 | |||||
Mexico City (Case) | 9,100 | 2,360 | 9,980 | 6,565 | |||||
Nagoya (Touchscreen) | 5,940 | 935 | 6,825 | 5,845 | |||||
To: Distribution Center | |||||||||
Atlanta, U.S. | 1,600 | 7,655 | 965 | 4,400 | |||||
Lagos, Nigeria | 7,410 | 7,610 | 6,875 | 3,060 | |||||
Rio De Janeiro, Brazil | 5,970 | 11,340 | 5,080 | 5,850 | |||||
Osaka, Japan | 6,030 | 850 | 6,910 | 5,840 | |||||
Frankfurt, Germany | 5,640 | 5,495 | 5,660 | 200 | |||||
Manufacturing Cost | Manufacturing Site | ||||||||
by site (per unit): | Phoenix | Shanghai | Monterrey | Brussels | |||||
Direct Material Cost | $19.00 | $19.00 | $19.00 | $19.00 | |||||
Air Freight In | 2.28 | $1.20 | 2.46 | 2.31 | |||||
Direct Labor Cost | $1.00 | $0.40 | $0.50 | $1.20 | |||||
Overhead Cost | $3.00 | $1.00 | $2.00 | $4.00 | ` | ||||
Total Mfg Cost per Unit | $25.28 | $21.60 | $23.96 | $26.51 | |||||
Production Assigned | From: Manufacturing Site | Total | Total Freight | Total Cost | |||||
To: Distribution Center: | Phoenix | Shanghai | Monterrey | Brussels | Subtotal | Mfg Cost | Out Cost | by Destination | |
Atlanta, U.S. | 41225 | 56600 | 100000 | 28165 | 225990 | $5,407,315 | $86,359 | $5,493,675 | |
Lagos, Nigeria | 768 | 8776 | 60000 | 50000 | 119544 | $2,972,108 | $76,557 | $3,048,665 | |
Rio De Janeiro, Brazil | 643 | 70000 | 50000 | 55000 | 175643 | $4,184,333 | $164,807 | $4,349,140 | |
Osaka, Japan | 76000 | 50000 | 67000 | 84000 | 277000 | $6,833,601 | $174,517 | $7,008,118 | |
Frankfurt, Germany | 59225 | 11655 | 100000 | 29765 | 200645 | $4,934,004 | $116,403 | $5,050,407 | |
Subtotal | 177861 | 197031 | 377000 | 246930 | $24,331,361 | $618,643 | $24,950,004 | ||
Total | |||||||||
Legend: | Changing Cells | Operating Cost | |||||||
Optimization Cell | |||||||||
You have been hired by Tommy Wong to optimize the assignment of production from the manufacturing sites to the distribution centers. Prepare a single page report in which you summarize your findings. In your report, clearly state what you would recommend to Wong and explain why (You may use the dataset given to you and Tableau to arrive at your conclusion).
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