Case Study : Designing the Production Network at CoolWipes
SCMG610 – Intro to Supply Chain Management
Axelle Sterkendries
Christabell Offei
1. What is the annual cost of serving the entire nation from Chicago?
The total cost to serve the entire nation from Chicago is $32,661.40 as shown
below.
2. Do you recommend adding any plant(s)? If so, where should the plant(s) be
built and what lines should be included? Assume that the Chicago plant will be
maintained at its current capacity but could be run at lower utilization. Would your
decision be different if transportation costs are half of their current value? What if they
were double their current value?
-As total costs decrease to $29,189, we recommend building a plant in
Princeton, LA and Atlanta with all plants producing both the Wipes and Ointment.
