Essay About Plant Production Costs And Import Duties

Applichem Cost Analysis
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Applichem – The Transportation Problem
Product Made and Shipped During Past Year (in 100,000 lb units)
Plant/Country
Mexico
Canada
Venezuela
Europe
United States
Japan
Total
Mexico City
Windsor, Ontario
Caracas, Venezuela
Frankfort, Germany
Gary, Indiana
Osaka, Japan
Total
Plant Production Costs and Capacity
Production Cost (per 1,000 lbs.)
Plant Capacity (100,000 lb units)
Mexico City
95.01
Windsor, Ontario
97.35
Caracas, Venezuela
116.34
Frankfort, Germany
76.69
Gary, Indiana
102.93
Osaka, Japan
153.80
100.7
Transportation Cost (per 1,000 lbs), Import Duties and Demands for Release-ease
Plant/Country
Mexico
Canada
Venezuela
Europe
United States
Japan
Mexico City
11.40
11.00
11.00
14.00
Windsor, Ontario
11.00
11.50
13.00
Caracas, Venezuela
10.00
13.00
10.40
14.30
Frankfort, Germany
10.00
11.50
12.50
11.20
13.30
Gary, Indiana
10.00
11.00
10.00
12.50
Osaka, Japan
14.00
13.00
12.50
14.20
13.00
Total Demand
16.00
20.00
26.40
11.90
Import Duty
50.0%
Base Costs
Plant/Country
Mexico
Canada
Venezuela
Europe
United States
Japan
Plant Capacity
Mexico City
$0.00
$11.40
$7.00
$11.00
$11.00
$14.00
Windsor, Ontario
11.00
11.50
13.00
Caracas, Venezuela
10.00
13.00
10.40
14.30
Frankfort, Germany
10.00
11.50
12.50
11.20
13.30
Gary, Indiana
10.00
11.00
10.00
12.50
Osaka, Japan
14.00
13.00
12.50
14.20
13.00
Total Demand
Production Costs
$95.01
$97.35
$116.34
$76.69
$102.93
$153.80
Import Duty
50.0%
Combined Costs
Plant/Country
Mexico
Canada
Venezuela
Europe
United States
Japan
Mexico City
$95.01
$106.41
$153.02
$116.08
$110.78
$115.55
Windsor, Ontario
108.35
97.35
155.03
118.10
107.73
116.19
Caracas, Venezuela
123.34
126.34
116.34
141.63
132.44
138.48
Frankfort, Germany
86.69
88.19
133.79
76.69
91.85
95.39
Gary, Indiana
86.69
108.93
170.90
123.66
102.93
94.54
Osaka, Japan
167.80
166.80
249.45
183.96
174.31
153.80
“Candidate
Solution”
Mexico
Canada
Venezuela
Europe
United States
Japan
“Total
Shipped”
Mexico City
Windsor Ontario
Caracas, Venezuela
Frankfort, Germany
Gary, Indiana
Osaka, Japan
Requirements
“Cost
Calculations”
Mexico
Canada
Venezuela
Europe
United States
Japan
Mexico City
$285.03
$0.00
$963.99
$0.00
$0.00
$912.85