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Cameron University Operations And Supply Chain Management Assignment Help - Supply Chain Design

Question - The following data are related to the operating costs of three possible locations for Fountains Manufacturing: Location 1 Location 2 Location 3 Fixed Costs $165,000 $125,000 $180,000 Direct material cost per unit 8.5 8.4 8.6 Direct labor cost per unit 4.2 3.9 3.7 Overhead per unit 1.1 1.1 1.0 Transportation costs per 1,00 units 800 1,100 950 Which location would minimize the total costs, given an annual productoi of 50,000 units? For what levels of manufacture and distribution would each location be best?

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