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Table 5-9 Global Demand and Duties for Sleekfon and Sturdyfon

Market
N America
S America
Sleekfon Demand
10
4
Sturdyfon Demand
12
1
Import Duties (%)
3%
20%

EU
20
4
4%

Non EU
3
8
15%

Table 5-10 Plant Capacities and Costs for Sleekfon and Sturdyfon

Sleekfon

Sturdyfon

EU(1)
N America(1)
S America
EU(2)
N America(2)
Asia

Var Cost/Unit
$
6.0
$
5.5
$
5.3
$
6.0
$
5.5
$
5.0

Table 5-11 Transportation Costs Between Regions ($ per Unit)


N America
S America
N America
$
1.00 $
1.50
S America
$
1.50 $
1.00
EU
$
1.50 $
1.70
Non EU
$
1.80 $
2.00
Japan
$
1.70 $
1.90
Asia
$
2.00 $
2.20
Africa
$
2.20 $
2.20

Fixed Costs ($)


Normal Capacity
$
100
20
$
100
20
$
60
10
$
100
20
$
100
20
$
50
10

EU
$
$
$
$
$
$
$

Non EU
1.50
1.70
1.00
1.20
1.80
1.70
1.40

$
$
$
$
$
$
$

1.80
2.00
1.20
1.00
1.80
1.60
1.50

PRODUCT ALLOCATION
Consumption Region
Company
Sleekfon

Sturdyfon

Production Region
EU(1)
N America(1)

N America

S America

EU

S America
EU(2)
N America(2)
Asia

PRODUCTION & TRANSPORTATION


EU
Regional Demand
N America
S America
EU

EU(1)

Sleekfon Supply Region


N America
S America
N America(1)
S America

Non EU
Japan
Asia
Africa
Constraints

Sleekfon

Sturdyfon

Supply Region
EU(1)
N America(1)
S America
EU(2)
N America(2)
Asia

Excess Capacity

N America
Unmet Demand (Sleekfon) =
Unmet Demand (Sturdyfon) =

Objective Function
Total Cost =

S America

EU

Japan
2
7
4%

Asia
2
3
22%

Japan
$
$
$
$
$
$
$

Africa
1
1
25%

Asia
1.70
1.90
1.80
1.80
1.00
1.20
1.90

$
$
$
$
$
$
$

Africa
2.00
2.20
1.70
1.60
1.20
1.00
1.80

$
$
$
$
$
$
$

2.20
2.20
1.40
1.50
1.90
1.80
1.00

DUCT ALLOCATION TABLE


Consumption Region
Non EU

Japan

Asia

Africa

Solver variable cells -- do not in

TRANSPORTATION COSTS
EU
EU(2)

Sturdyfon Supply Region


N America
Asia
N America(2)

Asia

In this table, find a formula that w


production & transportation costs from
given a certain output in the Pr

In this table, find a formula that w


production & transportation costs from
given a certain output in the Pr

Set constraints for Solver i


Sleekfon's production capac
exceed 20 rig
Non EU

Japan

Asia

Africa

Find Total Cost formula. Set Solver Objective to this for

variable cells -- do not input anything directly here!

e, find a formula that will calculate the combined


ansportation costs from a supply to a demand region
certain output in the Product Allocation Table

e, find a formula that will calculate the combined


ansportation costs from a supply to a demand region
certain output in the Product Allocation Table

t constraints for Solver in these blocks (ex:


kfon's production capacity in the EU cannot
exceed 20 right?)

bjective to this formula!

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