Question 12 20 pts Incorporating Differing Transportation Rates Instead of building regional shipping and receiving warehouses we are considering building a new manufacturing plant with 5 buildings. One of those buildings will be a receiving warehouse located on the north side of our manufacturing building which RECEIVES directly from our suppliers. Another building will be a shipping warehouse located on the west side of our manufacturing building which SHIPS directly to our customers. Assume we decide to change to rail transportation for our inbound shipments and will continue to use truck for our outbound shipments. Transportation cost per pound for outbound truck shipments are three times the inbound rail transportation cost per pound. Considering our change to our transportation costs what the optimal LONGITUDE of this location? Rail und Resean Developer MANUFACTURINO Highway Frontage -------- Supplier Data Location Brooklyn, NY Chippawa Falls, WI Eureka, CA Helena, MT Lexington, KY Moorehead, MN New York, NY San Francisco, CA San Jose, CA Sault St Marie, MI Seattle, WA St. Cloud, MN St. Louis, MO Traverse City, MI Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Longitude 73.58 W 91.39 W 124.00 W 112.02 W 84.30 W 96.76 W 74.00 W 122.30 W 122.00 W 84.37 W 122.40 W 94.13 W 90.00 W 85.60 W Latitude 40.22 N 44.93 N 40.45 N 46.60 N 38.00 N 46.86 N 40.48 N 37.55 N 37.00 N 46.48 N 47.32 N 45.55 N 38.42 N 44.75 N Yrs as a Annual Trading Units Partner Bought/Sold 6 144,000 2 120,000 9 2,160,000 3 512,000 7 100,000 4 780,000 5 80,000 7 3,600,000 2 1,520,000 5 584,000 1 360,000 2 720,000 1 24,000 2 800,000 Annual Purchases FROM: $3,420,000 $3,000,000 $13,500,000 $8,960,000 $2,625,000 $9,750,000 $2,200,000 $6,750,000 $13,300,000 $9,490,000 $7,200,000 $9,900,000 $720,000 $9,000,000 Annual Weight Shipped 180,000 150,000 2,700,000 640,000 125,000 975,000 100,000 4,500,000 1,900,000 730,000 450,000 900,000 30,000 1,000,000 Average Variation in Transit Time Transit Time (Days) (+/- Days) 5.6 1.5 4.8 1.4 4.6 1.9 4.8 1.8 5.6 1.4 4.1 1.3 5.8 1.7 4.0 1.9 4.7 1.2 5.5 1.6 4.2 1.9 4.9 1.3 5.6 1.4 4.0 1.9 Customer Locations Supplier Locations + Location Chicago, IL Chippawa Falls, WI Edgewater, FL Houghton, MI Ironwood, MI Jaab Lake, Ontario Jacksonville, FL Jessup, MD London, Ontario Marquette, WI Moosonee, Ontario New York, NY Phillipsburg, NJ Portland.MA Saginaw, MI Sarnia, Ontario Thunder Bay, Ontario Traverse City, MI Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Longitude 87.86 W 91.39 W 80.90 W 89.00 W 89.74 W 82.97 W 81.66 W 76.77 W 81.50 W 89.14 W 80.83 W 74.00 W 75.11 W 70.25 W 83.95 W 82.50 W 89.50 W 85.60 W Latitude 42.32 N 44.93 N 29.00 N 47.50 N 47.50 N 51.08 N 30.33 N 39.15 N 42.00 N 43.74 N 53.80 N 40.48 N 40.44 N 43.52 N 43.42 N 42.93 N 48.00 N 44.75 N Yrs as a Annual Trading Units Partner Bought/Sold 3 7,000 3 100 7 425,200 8 360 5 200 11 103,680 9 87,000 8 160,560 9 1,292,000 9 340 6 546,740 4 1,000 8 2,200 9 200,320 6 1,600 8 47,000 7 300 2 400 Annual Sales TO: $805,000 $16,500 $12,760,000 $52,200 $32,000 $7,776,000 $7,395,000 $9,633,600 $6,460,000 $51,000 $8,201,100 $135,000 $275,000 $8,012,800 $208,000 $4,230,000 $46,500 $56,000 Annual Weight Shipped 35,000 500 2,126,000 1,800 1,000 518,400 435,000 802,800 6,460,000 1,700 2,733,700 5,000 11,000 1,001,600 8,000 235,000 1,500 2,000 Average Variation in Transit Time Transit Time (Days) (+/- Days) 5.7 1.9 5.5 1.3 4.3 1.4 4.1 1.6 4.6 1.2 5.9 1.8 4.8 1.1 5.8 1.7 5.9 1.1 5.0 1.5 4.0 1.2 4.4 1.3 4.9 2.0 4.3 1.5 4.9 1.1 4.7 1.6 4.7 1.3 5.6 1.6 Question 12 20 pts Incorporating Differing Transportation Rates Instead of building regional shipping and receiving warehouses we are considering building a new manufacturing plant with 5 buildings. One of those buildings will be a receiving warehouse located on the north side of our manufacturing building which RECEIVES directly from our suppliers. Another building will be a shipping warehouse located on the west side of our manufacturing building which SHIPS directly to our customers. Assume we decide to change to rail transportation for our inbound shipments and will continue to use truck for our outbound shipments. Transportation cost per pound for outbound truck shipments are three times the inbound rail transportation cost per pound. Considering our change to our transportation costs what the optimal LONGITUDE of this location? Rail und Resean Developer MANUFACTURINO Highway Frontage -------- Supplier Data Location Brooklyn, NY Chippawa Falls, WI Eureka, CA Helena, MT Lexington, KY Moorehead, MN New York, NY San Francisco, CA San Jose, CA Sault St Marie, MI Seattle, WA St. Cloud, MN St. Louis, MO Traverse City, MI Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Longitude 73.58 W 91.39 W 124.00 W 112.02 W 84.30 W 96.76 W 74.00 W 122.30 W 122.00 W 84.37 W 122.40 W 94.13 W 90.00 W 85.60 W Latitude 40.22 N 44.93 N 40.45 N 46.60 N 38.00 N 46.86 N 40.48 N 37.55 N 37.00 N 46.48 N 47.32 N 45.55 N 38.42 N 44.75 N Yrs as a Annual Trading Units Partner Bought/Sold 6 144,000 2 120,000 9 2,160,000 3 512,000 7 100,000 4 780,000 5 80,000 7 3,600,000 2 1,520,000 5 584,000 1 360,000 2 720,000 1 24,000 2 800,000 Annual Purchases FROM: $3,420,000 $3,000,000 $13,500,000 $8,960,000 $2,625,000 $9,750,000 $2,200,000 $6,750,000 $13,300,000 $9,490,000 $7,200,000 $9,900,000 $720,000 $9,000,000 Annual Weight Shipped 180,000 150,000 2,700,000 640,000 125,000 975,000 100,000 4,500,000 1,900,000 730,000 450,000 900,000 30,000 1,000,000 Average Variation in Transit Time Transit Time (Days) (+/- Days) 5.6 1.5 4.8 1.4 4.6 1.9 4.8 1.8 5.6 1.4 4.1 1.3 5.8 1.7 4.0 1.9 4.7 1.2 5.5 1.6 4.2 1.9 4.9 1.3 5.6 1.4 4.0 1.9 Customer Locations Supplier Locations + Location Chicago, IL Chippawa Falls, WI Edgewater, FL Houghton, MI Ironwood, MI Jaab Lake, Ontario Jacksonville, FL Jessup, MD London, Ontario Marquette, WI Moosonee, Ontario New York, NY Phillipsburg, NJ Portland.MA Saginaw, MI Sarnia, Ontario Thunder Bay, Ontario Traverse City, MI Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Longitude 87.86 W 91.39 W 80.90 W 89.00 W 89.74 W 82.97 W 81.66 W 76.77 W 81.50 W 89.14 W 80.83 W 74.00 W 75.11 W 70.25 W 83.95 W 82.50 W 89.50 W 85.60 W Latitude 42.32 N 44.93 N 29.00 N 47.50 N 47.50 N 51.08 N 30.33 N 39.15 N 42.00 N 43.74 N 53.80 N 40.48 N 40.44 N 43.52 N 43.42 N 42.93 N 48.00 N 44.75 N Yrs as a Annual Trading Units Partner Bought/Sold 3 7,000 3 100 7 425,200 8 360 5 200 11 103,680 9 87,000 8 160,560 9 1,292,000 9 340 6 546,740 4 1,000 8 2,200 9 200,320 6 1,600 8 47,000 7 300 2 400 Annual Sales TO: $805,000 $16,500 $12,760,000 $52,200 $32,000 $7,776,000 $7,395,000 $9,633,600 $6,460,000 $51,000 $8,201,100 $135,000 $275,000 $8,012,800 $208,000 $4,230,000 $46,500 $56,000 Annual Weight Shipped 35,000 500 2,126,000 1,800 1,000 518,400 435,000 802,800 6,460,000 1,700 2,733,700 5,000 11,000 1,001,600 8,000 235,000 1,500 2,000 Average Variation in Transit Time Transit Time (Days) (+/- Days) 5.7 1.9 5.5 1.3 4.3 1.4 4.1 1.6 4.6 1.2 5.9 1.8 4.8 1.1 5.8 1.7 5.9 1.1 5.0 1.5 4.0 1.2 4.4 1.3 4.9 2.0 4.3 1.5 4.9 1.1 4.7 1.6 4.7 1.3 5.6 1.6