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Table 1a. Location A Toilet Lotion Spray Sanitizer Splitting and Mixing Cooling and Finishing Packing 4 5 10 1.5 2 1 1 1.5 1 Table

Table 1a. Location A Toilet Lotion Spray

Sanitizer

Splitting and Mixing

Cooling and Finishing Packing

4

5

10

1.5

2

1

1

1.5

1

Table 1b. Location B Toilet Lotion Spray

Sanitizer

Splitting and Mixing

Cooling and Finishing Packing

4

5

10

1.5

2

1

2

2

1

At Location A, the production cycle the company expects to spend 38,400 minutes in Splitting and Mixing process, 9,600 minutes in Cooling and Finishing, and 6,000 in Packing. The expected revenues will be for each unit is 3.75 EGP for Toilet Sanitizer, 8 EGP Lotion, and 8.07 for Spray. Additionally, the marketing team recommends testing the new market by putting a ceiling on the maximum number of Lotion as 1,000 units and Spray as 3,000.

At Location B, the production cycle consumes the same times as shown in the table 1b. The revenues however will be different: 10 EGP for Toilet Sanitizer, 14 EGP Lotion, and 6 for Spray. The constraints are the same.

The expected per box cost of transportation, storage and handling is shown in the next table (2) so you can use it in determining the new location of the factory given that the companys budget for the new transportation location is 760,000 EGP.

The company has 3 existing factories and ship their capacity to 4 different distribution areas in which area 1 needs 6,000 boxes, area 2 demands 7,000 boxes, area 3 has a demand of 6,500 and area 4 needs 3,000 boxes.

Each factory has a certain capacity; 1st plant has capacity of 7,200 boxes, 2nd plant can supply up to 3,800 boxes and the 3rd ones maximum production capacity is 4,600 boxes. The company wishes its new factory to supply the shortage in its supply.

Table 2

Area 1

Area 2

Area 3

Area 4

1st Zone

October

Shipping cost

8

9

4

4

Storage and handling cost

30

32

30

35

2nd Zone October

Shipping cost

5

6

8

5

Storage and handling cost

25

30

35

40

10th of

Ramadan Zone

Shipping cost

7

9

6

8

Storage and handling cost

38

25

42

37

Loc A (AlSafa)

Shipping cost

3

4

5

6

Storage and handling cost

30

31

41

37

Loc B (Almenia)

Shipping cost

2

6

5

7

Storage and handling cost

30

40

27

38

Please explain how you did it. Thank you so much

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