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    Argosy University/ Phoniex University/
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Category > Management Posted 28 Feb 2018 My Price 9.00

DryIce Inc

DryIce Inc., is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand for the next year to be 180,000 units in the South, 120,000 units in the Midwest, 110,000 units in the East, and 100,000 units in the West. Managers at DryIce are designing the manufacturing network and have selected four potential sites- New York, Atlanta, Chicago, and San Diego. Plants could have the capacity of either 200,000 or 400,000 units. The annual fixed costs at the four locations are shown in the table below, along with the cost of producing and shipping an air conditioner to each of the four markets. Where should DryIce build its factories and how large should they be?

Production and transport costs for DryIce Inc.

Demand Region

Supply City East South Midwest West
New York $211 $232 $240 $300
Atlanta $232 $212 $230 $280
Chicago $238 $230 $215 $270
San Diego $299 $280 $270 $225
Demand 110,000 180,000 120,000 100,000

Plant Option

Capacity Fixed Cost Capacity Fixed Cost  
200,000 $6,000,000 400,000 $10,000,000  
200,000 $5,500,000 400,000 $9,200,000
200,000 $5,600,000 400,000 $9,300,000  
200,000 $6,100,000 400,000 $10,200,000  

Answers

Maurice Tutor
(5)
Status NEW Posted 28 Feb 2018 08:02 PM My Price 9.00

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