George Heller was so successful in his previous assignment that he was promoted
tutor4helpyou
MGMT 511
Location Problem
George Heller was so successful in his previous assignment that he was promoted to the coveted position of Infrastructure Manager on the Mergers and Acquisitions Team.
Again Agame has recently acquired a competitive company with a plant and a warehouse in a nearby city. Management has decided to keep the additional warehouse. However, they are unsure if they need to keep the additional manufacturing plant. All products can be manufactured in either plant and shipped from either warehouse. Each plant and each warehouse has sufficient capacity to meet the total forecasted demand individually.
Prepare a report for management with your recommendation. Three possible choices exist. 1) Close the Competitor plant and satisfy all demand from the Again Agame plant; 2) Close the Again Agame plant and satisfy all demand from the Competitor plant; 3)Keep both plants open.
Your recommendation should include a solution for each of the five years in question. Include your calculations and spreadsheets in support of your recommendations.
Sales Forecast (cases) | |||||
| 2011 | 2012 | 2013 | 2014 | 2015 |
Competitor Warehouse (WH1) | 15,000,000 | 20,000,000 | 26,000,000 | 34,000,000 | 44,000,000 |
Again Agame Warehouse (WH2) | 6,000,000 | 7,000,000 | 10,000,000 | 15,000,000 | 21,000,000 |
Fixed Costs | |||||
| 2011 | 2012 | 2013 | 2014 | 2015 |
Competitor Plant (P1) | 900,000 | 900,000 | 900,000 | 900,000 | 900,000 |
Again Agame Plant (P2) | 800,000 | 800,000 | 800,000 | 800,000 | 800,000 |
Transportation Costs | |||||
$1.00 / 1,000 cases / mile | |||||
12 years ago
Purchase the answer to view it
data.xlsx- answer.docx
