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Tyrell, a manufacturer of pens, has three plastic suppliers worldwide. Their locations and capacities are given below. They have located potential sites for manufacturing facilities

Tyrell, a manufacturer of pens, has three plastic suppliers worldwide. Their locations and capacities are given below. They have located potential sites for manufacturing facilities in China, Philippines, Indonesia, Bangladesh and Cambodia. The capacities and the cost of producing and transporting 1 million pens to each facility from the suppliers is also given below. Given that their primary market is in North America and Europe, they have also located potential warehouse locations in Chicago, Louisville, Alberta, Vancouver, Amsterdam and Cologne. The capacities and transportation costs at each warehouse are given. Management must come up with a plan to decide which facilities are going to be open and how to manage the whole supply chain.

1. Do they have unutilized capacities are our suppliers? How much are they?

2. Which manufacturing facilities are open? List any unused capacities at the manufacturing facilities.

3. Which warehouses are open? List any unused capacities at each warehouse.

4. What is the total cost of this supply chain?

answer in excel

Supplier - Plants: Variable Transportation Costs
Suppliers Plants Locations (Costs p/million units)
China Phillippines Indonesia Bangladesh Cambodia Supplier capacity
China 2.3 2.7 2.8 3 2.9 60
India 2.6 2.9 2.8 2.4 2.8 70
Japan 2.5 3.3 3.3 3.3 2.2 70
Factory-Warehouse: Costs of Production & Transportations Costs
Factories Warehouse Locations (Costs p/million units)
Chicago Louisville Alberta Vancouver Amsterdam Cologne fixed cost factory capacity
China 7 7.6 6.9 6.8 7.6 7.8 350000 50
Phillippines 6.4 7.7 8 6 7.6 6.8 450000 65
Indonesia 7.8 7.1 7.8 6.9 7.2 7.8 380000 50
Bangladesh 6.1 7.8 6.2 7.6 6.4 7.8 290000 55
Cambodia 6.8 7.1 7.2 7.3 6.8 6.9 250000 45
Warehouse-Demand: Locations Warehousing & Transportation Costs
Warehouse Demand Locations (Costs p/million units)
North America Europe fixed cost warehouse capacity
Chicago 2.8 3.3 30000 35
Louisville 2.6 2.6 40000 35
Alberta 3 2.7 35000 35
Vancouver 2.4 2.9 20000 35
Amsterdam 2.7 2.7 38000 35
Cologne 2.6 3 42000 35
demand 75 105

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