Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sleekfon and Sturdyfon are two major cell phone manufacturers that have recently merged. Their current market sizes are as shown in Table 5-9. All demand

Sleekfon and Sturdyfon are two major cell phone manufacturers that have recently merged. Their current market sizes are as shown in Table 5-9. All demand is in millions of units................................................................................................. Sleekfon has three production facilities in Europe (EU), North America, and South America. Sturdyfon also has three production facilities in Europe (EU), North America, and the rest of Asia/Australia. The capacity (in millions of units), annual fixed cost (in millions of $), and variable production costs ($ per unit) for each plant are as shown in Table 5-10................................................................................................ Transportation costs between regions are as shown in Table 5-11. All transportation costs are shown in dollars per unit. Duties are applied on each unit based on the fixed cost per unit capacity, variable cost per unit, and transportation cost. Thus, a unit currently shipped from North America to Africa has a fixed cost per unit of capacity of $5.00, a variable production cost of $5.50, and a transportation cost of $2.20. The 25 percent import duty is thus applied on $12.70 (5.00 + 5.50 + 2.20) to give a total cost on import of $15.88. For the questions that follow, assume that market demand is as in Table 5-9................................................................................................. The merged company has estimated that scaling back a 20-million-unit plant to 10 million units saves 30 percent in fixed costs. Variable costs at a scaled-back plant are unaffected. Shutting a plant down (either 10 million or 20 million units) saves 80 percent in fixed costs. Fixed costs are only partially recovered because of severance and other costs associated with a shutdown................................................................................................. FOR THIS REVIEW QUESTION I NEED TO FIGURE OUT 1-5.................................................................. 1. What is the lowest cost achievable for the production and distribution network prior to the merger? Which plants serve which markets? 2. What is the lowest cost achievable for the production and distribution network after the merger if none of the plants is shut down? Which plants serve which markets? 3. What is the lowest cost achievable for the production and distribution network after the merger if plants can be scaled back or shut down in batches of 10 million units of capacity? Which plants serve which markets? 4. How is the optimal network configuration affected if all duties are reduced to 0? 5. How should the merged network be configured?..................................................................................... Required- All of the sections in question should be answered in an excel file , but different worksheets ( Screenshot of excel sheet should be fine if you can't share excel file here).......................................................................................::: pick the question when, if you sure that you're able to give the answer, i don't need any guess/ wrong answer, please

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Operations and Supply Chain Management

Authors: Cecil B. Bozarth, Robert B. Handfield

3rd edition

132747324, 978-0132747325

More Books

Students also viewed these General Management questions