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SC Consulting, a supply chain consulting firm, must decide on the location of its home offices. Its clients are located primarily in the 16 states

SC Consulting, a supply chain consulting firm, must decide on the location of its home offices. Its clients are located primarily in the 16 states listed in Table 5-5 of the textbook (shown below).

Travel Costs ($) Number of trips
State Los Angeles Tulsa Denver Seattle
Washington 150 250 200 25 40
Oregon 150 250 200 75 35
California 75 200 150 125 100
Idaho 150 200 125 125 25
Nevada 100 200 125 150 40
Montana 175 175 125 125 25
Wyoming 150 175 100 150 50
Utah 150 150 100 200 30
Arizona 75 200 100 250 50
Colorado 150 125 25 250 65
New Mexico 125 125 75 300 40
North Dakota 300 200 150 200 30
South Dakota 300 175 125 200 20
Nebraska 250 100 125 250 30
Kansas 250 75 75 300 40
Oklahoma 250 25 125 300 55

There are four potential sites for home offices: Los Angeles, Tulsa, Denver, and Seattle. The annual fixed cost of locating an office in Los Angeles is $165,428, Tulsa is $131,230, Denver is $140,000, and Seattle is $145,000. The expected number of trips to each state and the travel costs from each potential site are shown in Table 5-5. Each consultant is expected to take at most 25 trips each year.

There are three scenarios to be analyzed and presented.

If there are no restrictions on the number of consultants at a site and the goal is to minimize costs, where should the home office(s) be located and how many consultants should be assigned to the selected office(s)? What is the annual cost in terms of the facility and travel to service every state?

If 10 consultants are to be assigned to a home office, at most, where should the offices be set up? How many consultants should be assigned to each office? What is the annual cost of this network?

What do you think of a rule by which all consulting projects out of a given state are assigned to one home office? How much is this policy likely to add to cost compared to allowing multiple offices to handle a single state?

For each scenario, A, B and C, prepare an analyses with supporting logic answering each question in the scenario.

In the submission, describe the logic, answer each question of the scenario, prepare and submit supporting calculations supporting your recommendations for each scenario A, B and C. The submission must convey the recommendations through effective business explanations.

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