SOLUTIONS PLUS $$ MANAGERIAL REPORT

You are asked to make recommendations that will help Solutions Plus prepare a bid. Your

report should address, but not be limited to$,$ the following issues:

$1.$ Draw the network that shows the origin and destination points, routes, and costs

associated with each route. $(10$ points$)$

$2.$ Formulate and solve the distribution network problem using Excel Solver and

answer the following questions. $(15$ points$)$

a$.$ If Solutions Plus wins the bid, which production facility $($Cincinnati or Oakland$)$

should supply the cleaning fluid to the locations where the railroad

locomotives are cleaned? How much should be shipped from each facility to

each location? $(7$ points$)$

b$.$ What is the breakeven point for Solutions Plus? That is$,$ how low can the

company go on its bid without losing money? $(6$ points$)$

c$.$ If Solutions Plus wants to use its standard $15\%$ markup, how much should it

bid? $(4$ points$)$

d$.$ Freight costs are significantly affected by the price of oil. The contract on which

Solutions Plus is bidding is for two years. Discuss how fluctuation in freight

costs might affect the bid Solutions Plus submits. $(3$ points$)$