Essays on Supply Chain Management Assignment

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Generally, the paper "Supply Chain Management" is an outstanding example of a management assignment. In order to determine if there is any need to add a new plant in the proposed new locations, the cost of the production and distribution will be calculated and compared with the current location in Chicago.   In this case, since the production cost is constant irrespective of the new location of the three, the expected cost of production is as shown below (Nagurney 2006). Wipes Ointment Capacity =2000000 Capacity =1000000 Cost analysis Cost analysis Fixed cost- $ 2200000 Variable cost(10* capacity)- $20000000 Fixed cost- $1500000 Variable cost(20*capacity)- $20000000 Total production cost =$22200000 Total production cost= $21500000 Total production cost=43700000 $43,700,000 Now regarding the transportation issue, a calculation of the three areas, Princeton, Los Angeles and Atlanta will be done and compared with the current Chicago plant. Princeton Region Cost per unit ($) Wipes unit Ointment units Total units demanded (Wipes units+ Ointment units) The total cost of transport (Total units demanded*cost per unit) Princeton-Northwest 6.6 500,000 50,000 550,000 3630000 Princeton-Southwest 6.6 700,000 90,000 790,000 5214000 Princeton-Upper Midwest 5.76 900,000 120,000 1,020,000 5875200 Princeton-Lower Midwest 5.92 800,000 65,000 865,000 5120800 Princeton-Northeast 3.68 1,000,000 120,000 1,120,000 4121600 Princeton-Southeast 4.08 600,000 70,000 670,000 2733600 Total transport cost         $26695200 Atlanta Region Cost per unit ($) Wipes unit Ointment units Total units demanded (Wipes units+ Ointment units) The total cost of transport (Total units demanded*cost per unit) Atlanta-Northwest 6.72 500,000 50,000 550,000 3696000 Atlanta-Southwest 6.48 700,000 90,000 790,000 5119200 Atlanta-Upper Midwest 5.92 900,000 120,000 1,020,000 6038400 Atlanta-Lower Midwest 4.08 800,000 65,000 865,000 3529200 Atlanta-Northeast 4.04 1,000,000 120,000 1,120,000 4524800 Atlanta-Southeast 3.64 600,000 70,000 670,000 2438800 Total transport cost         $25346400  

References

Ferreira, WN 2009, Design of a Multi-echelon Global Supply Chain Network with MicrosoftRTM Excel Premium Solver Platform, ProQuest, New York.

Nagurney, A 2006, Supply Chain Network Economics: Dynamics of Prices, Flows And Profits, Edward Elgar Publishing, London.

Shah 2009, Supply Chain Management: Text And Cases, Pearson Education India, London.

Watson, M & Lewis, S 2012, Supply Chain Network Design: Applying Optimization and Analytics to the Global Supply Chain, FT Press, New York.

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