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Group 3
Aditya Chaudhary 19/125
Manan Agrawal 19/148
Mohit Soni 19/153
Surabhi Jain 19/174
Utkarsh 19/177
Assumptions
New plant can work at maximum capacity of 90%
If demand is more than the production, the amount sold is equal to
maximum amount that can be produced
Old plants are not running in loses
Construction of new plant begins in year 3 and it starts producing at
half its capacity in year 4
Depreciation is calculated from year 4 onwards
Production Facilities
Centers
Toronto
Toronto
K.C
L.A
Forecast
Seattle
5 year
10 year
0.75
2.5
4.5
4.75
1000
1000
K.C
2.5
2.5
2.75
750
1000
L.A
4.5
2.5
0.5
2.25
2500
3000
4.75
2.75
2.25
0.75
1500
2000
1.5
1.5
3.75
2.5
1500
2000
2.25
3.5
750
1000
5.25
3.25
1.75
3.75
2000
3000
Seattle
Chicago
Atlanta
Guadalajara
Units Transported
Production Facilities
Centers
Toronto
K.C
Toronto
0
0
K.C
L.A
0
0
0
0
Seattle
1000
750
Total
1000
750
Forecast
5 year
10 year
1000
1000
750
1000
Transportation Cost
Production Facilities
Centers
Toronto
Toronto
K.C
L.A
Forecast
Seattle
Guadalaj
ara
5 year
10 year
0.75
2.5
4.5
4.75
5.25
1000
1000
K.C
2.5
2.5
2.75
3.25
750
1000
L.A
4.5
2.5
0.5
2.25
1.75
2500
3000
4.75
2.75
2.25
0.75
2.5
1500
2000
1.5
1.5
3.75
2.5
3.75
1500
2000
2.25
3.5
3.5
750
1000
5.25
3.25
1.75
3.75
0.5
2000
3000
Seattle
Chicago
Atlanta
Guadalajara
Units Transported
Production Facilities
Centers
Toronto
K.C
L.A
Seattle
Total
Guadalajara
Forecast
5 year
10 year
Utilization
5 Years
10 Years
With
Guadalajara
facility
Without
Guadalajara
facility
With
Guadalajara
facility
Without
Guadalajara
facility
Toronto
90%
Toronto
90%
Toronto
90%
Toronto
90%
K.C
0%
K.C
90%
K.C
90%
K.C
90%
L.A
90%
L.A
90%
L.A
90%
L.A
90%
Seattle
40%
Seattle
90%
Seattle
90%
Seattle
90%
Year
Demand
Production
8000
8000
8500
8500
9000
9000
9500
9000
10000
10000
10500
10500
6
11000
11000
7
11500
11500
8
12000
12000
9
12500
12500
10
13000
12600
Production in new
plant
1000
1500
2000
2500
3000
3500
3600
FC/day
VC
0
0
0
0
0
0
0
0
833.33
10000
833.33
15000
833.33
20000
833.33
25000
833.33
30000
833.33
35000
833.33
36000
TC
Revenue
Profit
Thank you!