ABC company is a manufacturing company of room heaters that had seen its demand grow significantly.the company anticipates nationwide demand for the year 2008 to be 140,000 units in the South,130,000 units in the Midwest,120.000 units in the East and 110,000 units in the west. Managers at ABC company 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 cost at the four locations are shown in the following table along with cost of producing and shipping a room heater to each of the four markets. calculate total costs, if ABC satisfied the demand in the South and Midwest from Chicago through 400,000unit plant and rest of the demand is fulfilled through two 200,000 unit(small) plants? various costs involved in decision making.
New york Atlanta Chicago San Diego .annual fixed cost
of200,000 plant $5000000 $5100000 $5,900,000 $ 6000000
annual fixed cost
of 400000 plant $11000000 $930000 $9500000 $10,500,000
East $211 $232 $238 $299
South $232 $212 $230 $280
Midwest $240 $230 $215 $270
West $300 $280 $270 $225
total v.c?
total f.c?
t.c?