2. DryIce, Inc. is a manufacturer of air conditioners that has seen its demand
The company anticipates nationwide demand as shown in
Managers at DryIce are designing the manufacturing network and
have selected four potential sites -- New York, Atlanta, Chicago, and San
Plants could have a capacity of either 200,000 or 400,000 units.
annual fixed costs at the four locations are shown in Table 5-6, along with
the cost of producing and shipping an air conditioner to each of the four
TABLE 5-6 Production and Transport Costs for DryIce, Inc.
TABLE 5-6A Production and Transport Quantities for DryIce, Inc.