2. Titan Susan Li, vice president for operations of HHN, Inc., a manufacturer of cabinets...
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2. Titan Susan Li, vice president for operations of HHN, Inc., a manufacturer of cabinets for telephone switches, is constrained from meeting her 5-year forecast by limited capacity at the company's three existing plants. These plants are Waterloo, Pusan, and Bogota. As her able assistant, you have been told that because of existing capacity constraints and the expanding world market for HHN cabinets, a fourth plant is to be added. The real estate department has advised Susan that two sites seem particularly good because of stable political situations and tolerable exchange rates. These two locations are Dublin, Ireland and Fontainebleau, France. Susan suggests that from the data collected in the following table, which provide production and transportation costs, you should be able to determine where the fourth plant should be located. Solve this problem and explain the selected choice to Susan. Also, provide the delivery schedule of your solution.
Plant
Location
Market Area
Waterloo
Pusan
Bogota
Fontainebleau
Dublin
Canada:
Demand 4000
Production Cost
50
30
40
50
45
Transportation Cost
10
25
20
25
25
South America: Demand 5000
Production Cost
50
30
40
50
45
Transportation Cost
20
25
10
30
30
Pacific Rim:
Demand 10000
Production Cost
50
30
40
50
45
Transportation Cost
25
10
25
40
40
Europe:
Demand 5000
Production Cost
50
30
40
50
45
Transportation Cost
25
40
30
10
20
Capacity
8000
2000
5000
9000
9000
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