978-0134731889 Case Coolwipes

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CoolWipes

1) The total cost to serve the entire nation from Chicago is $32,661.40 as illustrated below:

CoolWipes

2) Based upon a reduction in total costs to $31,025, we would recommend building new plants in

Princeton and LA for Wipes. All ointment would continue to be produced in Chicago. The

production quantities at various plants are as outlined below:

CoolWipes

If the transportation costs were half their current amount, it would be optimal to maintain only the

Chicago plant. The total cost of serving all markets from Chicago would decline to $19,580 as

illustrated below:

CoolWipes

If transportation costs were double their current levels, the recommendation would be to build new

plants for wipes at Princeton and LA and leave ointment in Chicago. The total cost would rise to

$51,150 and the markets served by various plants would be as shown below:

CoolWipes

3) As illustrated below in the three spreadsheets, the recommendations change if we do not

CoolWipes