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Case Study (C) ABccola operatesaplant in the northerm section ofeheisland nation of Tawanda The plant produces soft drinks in three types of packages that include retumable glass bottles, aluminum cans, and nonreturnable plastic beeles. Retumable (empty)bottles are shipped to the distribution warehouses for reuse in the plant. Because of the continued growth in demand, ABC wants to build another plant. The demand for the soft drinks in cases) over the next 5 years is given in Table 1.The planned production capacities for the existing plant extrapolated over the same 5-year horizon are given in Table 2 The company owns six distribution warehouses and N2 in the north, c1 and c2 in the central section, S1 and s2 in the southThe share of sales by each warehouse within its zoneis given in Table 3.Approximately 60% ofthe sales occur in the north, 15% in the central section, and 25% in the south. The company wants to construct the new plant either in the centralsection or in the south. The transportation cost per case ofretumable bottles is given in Table 4. It is estimated that the transportation costs per case ofcans and per case of nonretumables are, and 70% of that of the retumable bottles. Should the new plant be located in the central or the southerm section of the country? Table 1 2400 2450 2600 2800 3100 1750 2000 2300 2650 3050 Table 2 1800 1400 1900 2050 2150 Nonreturnables 350 380 400 400 450 Table 4 Table 3 Transportation cost per case G) Warebouse Share percentage Warehouse Existing plant Central Plant South plant 150 150 Case Study (C) ABccola operatesaplant in the northerm section ofeheisland nation of Tawanda The plant produces soft drinks in three types of packages that include retumable glass bottles, aluminum cans, and nonreturnable plastic beeles. Retumable (empty)bottles are shipped to the distribution warehouses for reuse in the plant. Because of the continued growth in demand, ABC wants to build another plant. The demand for the soft drinks in cases) over the next 5 years is given in Table 1.The planned production capacities for the existing plant extrapolated over the same 5-year horizon are given in Table 2 The company owns six distribution warehouses and N2 in the north, c1 and c2 in the central section, S1 and s2 in the southThe share of sales by each warehouse within its zoneis given in Table 3.Approximately 60% ofthe sales occur in the north, 15% in the central section, and 25% in the south. The company wants to construct the new plant either in the centralsection or in the south. The transportation cost per case ofretumable bottles is given in Table 4. It is estimated that the transportation costs per case ofcans and per case of nonretumables are, and 70% of that of the retumable bottles. Should the new plant be located in the central or the southerm section of the country? Table 1 2400 2450 2600 2800 3100 1750 2000 2300 2650 3050 Table 2 1800 1400 1900 2050 2150 Nonreturnables 350 380 400 400 450 Table 4 Table 3 Transportation cost per case G) Warebouse Share percentage Warehouse Existing plant Central Plant South plant 150 150
