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Sunchem, a manufacturer of printing inks, has five manufacturing plants worldwide. Their locations and capacities are shown in the table below along with the
Sunchem, a manufacturer of printing inks, has five manufacturing plants worldwide. Their locations and capacities are shown in the table below along with the cost of producing 1 ton of ink (in U.S. dollars) at each facility. The major markets for the inks are North America, South America, Europe, Japan, and the rest of Asia. Demand at each market is shown in the table. Transportation costs (per ton) from each plant to each market in U.S. dollars are shown in the table. Management must come up with a production plan for the next year. There is a requirement that no plant can run below 50 percent of capacity. North Europe Japan America South America Capacity Asia Production (Tons/Year) Cost/Ton United States 600 1,300 2,000 1,200 1,700 95 10,000 Germany 1,300 600 1,400 1,400 1,300 475 7,500 Japan 2,000 1,400 300 2,100 900 50 11,000 Brazil 1,200 1,400 2,100 800 2,100 200 7,000 India 2,200 1,300 1,000 2,300 800 80 9,000 Demand 270 200 120 190 100 (Tons/Year)
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