SUPPLY CHAIN MANAGEMENT
"please solve in Excel and can you show the steps with solution"
Q: Sunchem, a manufacturer of printing inks, has five manufac-
turing plants worldwide. Their locations and capacities are
shown in Table 5-7 along with the cost of producing 1 ton of ink
at each facility. The production costs are in the local currency of the country where the plant is located. 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
Table 5-7. Transportation costs from each plant to each market
in U.S. dollars are shown in Table 5-7. Management must come
up with a production plan for the next year.
a. If exchange rates are expected as in Table 5-8, and no plant
can run below 50 percent of capacity, how much should each
plant produce and which markets should each plant supply?
b. If there are no limits on the amount produced in a plant,
how much should each plant produce?
c. Can adding 10 tons of capacity in any plant reduce costs?
d. How should Sunchem account for the fact that exchange
rates fluctuate over time?
- Supply Chain Management Please Solve In Excel And Can You Show The Steps With Solution Q Sunchem A Manufacturer Of P 1 (50.29 KiB) Viewed 68 times
sow soultion with steps
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3. Sunchem, a manufacturer of printing inks, has five manufac. turing plants worldwide. Their locations and capacities shown in Table 5-7 along with the cost of producing 1 ton of are ink at each facility. The production costs are in the local cur- rency of the country where the plant is located. 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 Table 5-7. Transportation costs from each plant to each market in U.S. dollars are shown in Table 5-7. Manage- ment must come up with a production plan for the next year. a. If exchange rates are expected as in Table 5-8, and no plant can run below 50 percent of capacity, how much should each plant produce and which markets should each plant supply? b. If there are no limits on the amount produced in a plant. Chow much should each plant produce? TABLE 5-8 Anticipated Exchange Rates for the Next Year USS Euro 1.993 Yen 107.7 54.07 USS 1.000 Euro 0.502 Yen 0.0093 Real 0.562 Rupee 0.023 Real 1.78 0.89 0.016 Rupee 43.55 21.83 0.405 24.52 1 0.0185 1.124 0.046 1 60.65 2.47 0.041 TABLE 5-7 Capacity. Demand, Production, and Transportation Costs for Suchem North South Capacity Production America Europe Japan America Asia Tons/Year Cost/Ton United States 5600 $1,300 52.000 51.200 51,700 185 510.000 Germany $1,300 S600 51.400 $1,400 31 300 15.000 euro Japan $2,000 51.400 $300 52100 50 10,coopers $1,200 51.400 52.100 5800 52100 200 TEODO India 52,200 51300 $1.000 52300 580 00.000 naman 270 200 120196 100