Applichem Cost Analysis
Essay by people • July 9, 2011 • Case Study • 352 Words (2 Pages) • 2,254 Views
Applichem - The Transportation Problem
Product Made and Shipped During Past Year (in 100,000 lb units)
Plant/Country Mexico Canada Venezuela Europe United States Japan Total
Mexico City 3.0 6.3 7.9 17.2
Windsor, Ontario 2.6 2.6
Caracas, Venezuela 4.1 4.1
Frankfort, Germany 5.6 20.0 12.4 38.0
Gary, Indiana 14.0 14.0
Osaka, Japan 4.0 4.0 79.9
Total 3.0 2.6 16.0 20.0 26.4 11.9
79.9
Plant Production Costs and Capacity
Production Cost (per 1,000 lbs.) Plant Capacity (100,000 lb units)
Mexico City 95.01 22.0
Windsor, Ontario 97.35 3.7
Caracas, Venezuela 116.34 4.5
Frankfort, Germany 76.69 47.0
Gary, Indiana 102.93 18.5
Osaka, Japan 153.80 5.0
100.7
Transportation Cost (per 1,000 lbs), Import Duties and Demands for Release-ease
Plant/Country Mexico Canada Venezuela Europe United States Japan
Mexico City 0.00 11.40 7.00 11.00 11.00 14.00
Windsor, Ontario 11.00 0.00 9.00 11.50 6.00 13.00
Caracas, Venezuela 7.00 10.00 0.00 13.00 10.40 14.30
Frankfort, Germany 10.00 11.50 12.50 0.00 11.20 13.30
Gary, Indiana 10.00 6.00 11.00 10.00 0.00 12.50
Osaka, Japan 14.00 13.00 12.50 14.20 13.00 0.00
Total Demand 3.00 2.60 16.00 20.00 26.40 11.90
Import Duty 0.0% 0.0% 50.0% 9.5% 4.5% 6.0%
Base Costs
Plant/Country Mexico Canada Venezuela Europe United States Japan Plant Capacity
Mexico City $0.00 $11.40 $7.00 $11.00 $11.00 $14.00 22.0
Windsor, Ontario 11.00 0.00 9.00 11.50 6.00 13.00 3.7
Caracas, Venezuela 7.00 10.00 0.00 13.00 10.40 14.30 4.5
Frankfort, Germany 10.00 11.50 12.50 0.00 11.20 13.30 47.0
Gary, Indiana 10.00 6.00 11.00 10.00 0.00 12.50 18.5
Osaka, Japan 14.00 13.00 12.50 14.20 13.00 0.00 5.0
Total Demand 3.0 2.6 16.0 20.0 26.4 11.9
Production Costs $95.01 $97.35 $116.34 $76.69 $102.93 $153.80
Import Duty 0.0% 0.0% 50.0% 9.5% 4.5% 6.0%
Combined Costs
Plant/Country Mexico Canada Venezuela Europe United States Japan
Mexico City $95.01 $106.41 $153.02 $116.08 $110.78 $115.55
Windsor, Ontario 108.35 97.35 155.03 118.10 107.73 116.19
Caracas, Venezuela 123.34 126.34 116.34 141.63 132.44 138.48
Frankfort, Germany 86.69 88.19 133.79 76.69 91.85 95.39
Gary, Indiana 86.69 108.93 170.90 123.66 102.93 94.54
Osaka, Japan 167.80 166.80 249.45 183.96 174.31 153.80
"Candidate
Solution" Mexico Canada Venezuela Europe United States Japan "Total
Shipped"
Mexico City 3.0 6.3 7.9 17.2
Windsor Ontario 2.6 2.6
Caracas, Venezuela 4.1 4.1
Frankfort, Germany 5.6 20.0 12.4 38.0
Gary, Indiana 14.0 14.0
Osaka, Japan 4.0 4.0
Requirements 3.0 2.6 16.0 20.0 26.4 11.9 79.9
"Cost
Calculations" Mexico Canada Venezuela Europe United States Japan
Mexico City $285.03 $0.00 $963.99 $0.00 $0.00 $912.85
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