Coolwipes Case

CoolWipes 1) The total cost to serve the entire nation from Chicago is $32,661.40 as illustrated below:

2) Based upon a reduction in total costs to $29,189, we would recommend building a plant Princeton, Atlanta and LA. All plants would offer both the Wipes and Ointment product line, with their production quantities as outlined below:

CoolWipes

The recommendation would remain the same to build all the additional plants, but with different production quantities if the transportation costs were half their current amount as the resulting total cost would now be $16,948 as illustrated below:

CoolWipes

If transportation costs were double their current levels, the recommendation would be to stay with the Chicago facility servicing the entire nation as the total costs would rise to $86,530.

CoolWipes

3) As illustrated below in the three spreadsheets, the recommendations would be exactly as above for current costs, transportation costs at half their current level and with transportation costs at double their current costs. The only difference in the recommendations would involve the production quantities at each facility.

CoolWipes

CoolWipes

CoolWipes