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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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