SETZER_HW02_02 - SETZER_HW02_02.pdf Page 1 of 2 2. DryIce,...

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2. DryIce, Inc. is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand as shown in Table 5-6A. Managers at DryIce are designing the manufacturing network and have selected four potential sites -- New York, Atlanta, Chicago, and San Diego. Plants could have a capacity of either 200,000 or 400,000 units. The 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 markets. TABLE 5-6 Production and Transport Costs for DryIce, Inc. Fac Region NY Cost ATL Cost CHI Cost SD Cost 200000 $6,000,000 $5,500,000 $5,600,000 $6,100,000 400000 $10,000,000 $9,200,000 $9,300,000 $10,200,000 East Cost $211 $232 $238 $299 South Cost $232 $212 $230 $280 Midwest Cost $240 $230 $215 $270 West Cost $300 $280 $270 $225 FacCost := B2 : E3 Cost := B2 : E7 TABLE 5-6A Production and Transport Quantities for DryIce, Inc. Fac Region NY Qty ATL Qty CHI Qty
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This note was uploaded on 05/12/2010 for the course ESI 6323 taught by Professor Guan during the Summer '09 term at University of Florida.

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SETZER_HW02_02 - SETZER_HW02_02.pdf Page 1 of 2 2. DryIce,...

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