By way of example in the North East the process is as follows In the North East

By way of example in the north east the process is as

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By way of example in the North East, the process is as follows: In the North East US, the Rochester plant manufactures the product based on the demand in the North East and then ships it to the Philadelphia Distribution Center. From this center in Philadelphia, it is then shipped to all the stores in the North East. Since the products are identical from each plant, in theory they can close 4 of the plants and have only one do all the manufacturing. However there are cost implications from shipping the product between a plant and a far-away distribution center. There are also a variety of other implications. As such, the current process is that all the products required in a region of the US comes from the plant within that region.
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Typical Orders Each Month (in Units) Retailers Volume North East 103,000 Currently all volume ordered by retailers is East Coast 64,000 manufacturered by the corresponding Plant Southern 56,000 and shipped to the retailers from the Central and Mid West 84,000 corresponding Distribution Center. Western US 113,000 Total 420,000 Costs to Ship from Plant to Distribution Center (costs per Unit) Rochester, NY Plant $0.80 $2.12 $2.54 $2.30 $3.70 Altanta, GA Plant $2.06 $0.70 $1.14 $1.34 $2.32 Houston, TX Plant $1.10 $1.12 $1.00 $1.06 $1.44 Minneapolis, MN Plant $1.32 $1.40 $1.04 $0.86 $1.34 San Diego, CA Plant $2.50 $2.40 $1.52 $1.32 $1.85 Costs to Manufacture in Each Plant (costs per Unit) Rochester, NY Plant $9.60 Altanta, GA Plant $8.80 Houston, TX Plant $9.20 Minneapolis, MN Plant $8.25 San Diego, CA Plant $11.20 Due to Labor Union rules… no one plant can manufacture more than 35% of all units each plant must manufacture at least 10% of all units Philadelphia, PA Distribution Center Altanta, GA Distribution Center Dallas, TX Distribution Center Minneapolis, MN Distribution Center Los Angeles, CA Distribution Center
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Every week a sample of 20 products is selected from each plants and tested for quality issues. The products are randomly selected and weighed. The most recent 18 weeks of sampling are listed below. Week 1 175.2 195.6 202.1 198.9 188.2 Week 1 208.4 205.2 203.9 195.7 182.3 1 Week 1 234.2 190.8 201.5 199.8 203.5 2 Week 1 211.1 202.4 200.4 195.2 184.9 3 Week 1 145.2 193.6 196.9 194.4 179.8 4 Week 1 234.1 205.6 197.2 209.3 208.4 5 Week 1 177.7 198.3 200.8 202.7 205.2 6 Week 1 151.1 204.4 201.3 202.9 203.9 7 Week 1 186.2 203.3 196.9 203.3 178.6 8 Week 1 210.7 198.0 198.7 194.8 183.5 9 Week 1 204.8 190.2 200.1 194.9 214.7 10 Week 1 230.6 197.4 204.6 197.4 213.5 11 Week 1 195.0 205.6 205.7 210.8 209.5 12 Week 1 189.5 191.4 197.2 210.6 211.1 13 Week 1 218.0 195.9 197.3 194.1 200.4 14 Week 1 220.9 198.0 199.4 194.4 213.3 15 Week 1 213.5 213.3 197.2 185.3 208.4 16 Week 1 164.2 211.3 199.6 208.1 200.1 17 Week 1 223.9 203.6 197.1 195.7 203.4 18 Week 1 205.7 196.0 202.1 211.8 207.2 19 20 Week 2 194.7 203.0 203.4 192.7 208.2 Week 2 241.6 202.2 201.7 193.8 216.5 Average Week 2 201.3 197.1 197.7 189.7 183.6 Range Week 2 153.3 189.4 202.8 199.1 202.7 Week 2 187.7 206.4 203.6 201.9 193.9 Week 2 179.5 201.5 199.7 213.8 208.7 Week 2 214.1 206.4 200.0 205.3 200.6 Week 2 221.1 199.3 196.7 205.5 208.1 1 Week 2 204.3 196.5 196.0 215.3 183.1 2 Week 2 239.1 204.4 200.7 205.9 192.7 3 Week 2 198.6 192.0 196.5 191.8 213.7 4 Week 2 174.2 209.7 198.3 198.4 202.4 5 Week 2 144.7 207.7 199.7 186.8 196.3 6 Week 2 213.9 196.7 202.1 192.3 212.2 7 Week 2 202.6 205.5 203.0 215.1 202.6 8 Week 2 211.9 192.6 205.1 202.4 193.0 9 Week 2 149.4 202.6 197.1 187.2 204.3 10 Sample Taken Rochester, NY Plant Altanta, GA Plant Houston, TX Plant Minneapolis, MN Plant San Diego, CA Plant
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Week 2 221.5 196.7 196.9 190.6 189.9 11 Week 2 244.3 194.5 196.0 210.9 177.1 12 Week 2 202.4 195.8 203.0 201.3 210.6 13 14 Week 3 144.7 207.7 199.7 186.8 196.3 15 Week 3 239.1 204.4 200.7 205.9 192.7 16 Week 3 198.6 192.0 196.5 191.8 213.7 17 Week 3 221.1 199.3 196.7 205.5 208.1 18 Week 3 174.2 209.7 198.3 198.4 202.4 19 Week 3 179.5 201.5 199.7 213.8 208.7 20 Week 3 211.9 192.6 205.1 202.4 193.0 Week 3 202.6 205.5 203.0 215.1 202.6 Average Week 3 213.9 196.7 202.1 192.3 212.2 Range Week 3 214.1 206.4 200.0 205.3 200.6 Week 3 244.3 194.5 196.0 210.9 177.1 Week 3 202.4 195.8 203.0 201.3 210.6 Week 3 204.3 196.5 196.0 215.3 183.1 Week 3 153.3 189.4 202.8
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