Input Data
North East South West Capacity
Annual
Fixed
Cost
Tax Rate
France 100 110 110 100 50 1,000 0.25
Germany 95 105 105 105 50 1,000 0.25
Finland 90 100 115 110 40 850 0.3
30 15 20 35
U.K. 105 120 115 90 50 1,000 0.2
Italy 110 105 85 115 60 1,150 0.35
15 20 30 20
45 35 50 55
Sale Price = 300
Total Demand
Variable Production and Shipping Costs
Hot&Cold
Demand
CaldoFreddo
Demand
Input Data
North East South West Capacity
Annual
Fixed Cost
Tax Rate
France 100 110 110 100 50 1,000 0.25
Germany 95 105 105 105 50 1,000 0.25
Finland 90 100 115 110 40 850 0.30
30 20 20 35
U.K. 105 120 115 90 50 1,000 0.20
Italy 110 105 85 115 60 1,150 0.35
15 20 30 20
45 35 50 55
Sale Price = 300
Decision Variables
North East South West Capacity
Annual
Cost
Annual
Profit
After Tax
Profit
France 0.0 0.0 0.0 35.0 15 4,500.0 6,000.0 4,500.0
Germany 10.0 0.0 20.0 0.0 20 4,050.0 4,950.0 3,712.5
Finland 20.0 20.0 0.0 0.0 0 4,650.0 7,350.0 5,145.0
0 0 0 0
13,200.0 13,357.5
CaldoFreddo
Demand
Hot&Cold
Demand
Quantity Shipped (million units)
Variable Production and Shipping Costs
Hot&Cold
Demand
Total Demand
Input Data
North East South West Capacity
Annual
Fixed Cost
Tax Rate
France 100 110 110 100 50 1,000 0.25
Germany 95 105 105 105 50 1,000 0.25
Finland 90 100 115 110 40 850 0.30
30 20 20 35
U.K. 105 120 115 90 50 1,000 0.20
Italy 110 105 85 115 60 1,150 0.35
15 20 30 20
45 35 50 55
Sale price = 300
Decision Variables
Capacity Annual Cost
Annual
Profit
After Tax
Profit
U.K. 15 0 0 20 15 4,375$ 6,125$ 4,900$
Italy 0 20 30 010 5,800$ 9,200$ 5,980$
0 0 0 0
10,175$ 10,880$
Demand
Quantity Shipped (million units)
Variable Production and Shipping Costs
Hot&Cold
Demand
Total Demand
CaldoFreddo
Demand
CaldoFreddo
Input Data
North East South West Capacity
Annual
Fixed Cost
Tax Rate
France 100 110 110 100 50 1,000 0.25
Germany 95 105 105 105 50 1,000 0.25
Finland 90 100 115 110 40 850 0.30
30 20 20 35
U.K. 105 120 115 90 50 1,000 0.20
Italy 110 105 85 115 60 1,150 0.35
15 20 30 20
45 35 50 55
Sale Price = 300
Decision Variables
Open (1) /
Shut (0)
Capacity
Annual
Cost
Annual
Profit
After Tax
Profit
France 0 0 0 5 145 1,500$ –$ –$
Germany 5 35 0 0 110 5,150$ 6,850$ 4,453$
Finland 40 0 0 0 1 0 4,450$ 7,550$ 7,550$
U.K. 0 0 0 50 1 0 5,500$ 9,500$ 7,600$
Italy 0 0 50 0110 5,400$ 9,600$ 6,240$
Demand 0.0E+00 0.0E+00 0.0E+00 0.0E+00
22,000$ 25,843$
Variable Production and Shipping Costs
Hot&Cold
Demand
Total Demand
CaldoFreddo
Demand
Merged
Company
Quantity Shipped (million units)
Input Data
North East South West Capacity
Annual
Fixed Cost
Tax Rate
France 100 110 110 100 50 1,000 0.25
Germany 95 105 105 105 50 1,000 0.25
Finland 90 100 115 110 40 850 0.30
30 20 20 35
U.K. 105 120 115 90 50 1,000 0.20
Italy 110 105 85 115 60 1,150 0.35
15 20 30 20
45 35 50 55
Sale Price = 300
Decision Variables
Open (1) /
Shut (0)
Capacity
Annual
Cost
Annual
Profit
After Tax
Profit
France 0 0 0 0 0 0 –$ –$ –$
Germany 5 35 0 5 1 5 5,675$ 7,825$ 5,086$
Finland 40 0 0 0 1 0 4,450$ 7,550$ 7,550$
U.K. 0 0 0 50 1 0 5,500$ 9,500$ 7,600$
Italy 0 0 50 0110 5,400$ 9,600$ 6,240$
Demand 0.0E+00 0.0E+00 0.0E+00 0.0E+00
21,025$ 26,476$
CaldoFreddo
Demand
Total Demand
Quantity Shipped (million units)
Merged
Company
Variable Production and Shipping Costs
Hot&Cold
Demand