Product Shipping Strategy, 1982

From/To Mexico Canada Venezuela Frankfurt Gary Sunchem

Mexico 3 6.3 7.9
Canada 2.6
Venezuela 4.1
Frankfurt 5.6 20 12.4
Gary 14
Sunchem 4
Total Incoming 3 2.6 16 20 26.4 11.9

Product Shipping Cost, 1982

Plant Mexico Canada Venezuela Frankfurt Gary Sunchem
Mexico 0 $11.40 $7.00 $11.00 $11.00 $14.00
Canada $11.00 0 $9.00 $11.50 $6.00 $13.00
Venezuela $7.00 $10.00 0 $13.00 $10.40 $14.30
Frankfurt $10.00 $11.50 $12.50 0 $11.20 $13.30
Gary $10.00 $6.00 $11.00 $10.00 0 $12.50
Sunchem $14.00 $13.00 $12.50 $14.20 $18.00 0
Import Duty 0.00% 0.00% 50.00% 9.50% 4.50% 6.00%

Capacity and Demand

Production Plant Annual

Plant Cost (per Capacity (in Demand (in
1,000 lbs) 1,000 lbs) 1,000 lbs)
Mexico $95.01 2200 300
Canada $97.35 370 260
Venezuela $116.34 450 1600
Frankfurt $76.69 4700 2000
Gary $102.93 1850 2640
Sunchem $153.80 500 1190
100.7 7990

Production+ Shipping+Import Cost Per Plant Per Item

Mexico Canada Venezuela Frankfurt Gary Sunchem
Mexico $97.35 $97.35 $97.35 $97.35 $97.35 $97.35
Canada $116.34 $116.34 $116.34 $116.34 $116.34 $116.34
Venezuela $76.69 $76.69 $76.69 $76.69 $76.69 $76.69
Frankfurt $102.93 $102.93 $102.93 $102.93 $102.93 $102.93
Gary $153.80 $153.80 $153.80 $153.80 $153.80 $153.80
Sunchem $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Total Costs As per Current Model

 Mexico Canada Venezuela Frankfurt Gary Sunchem
Mexico $285.03 $963.99 $912.85
Canada $253.11
Venezuela $476.99
Frankfurt $749.20 $1,533.80 $1,138.88
Gary $1,441.02
Sunchem $615.20
Total=
Total Shipped Plant Capacity Idle
17.2 22 4.8
2.6 3.7 1.1
4.1 4.5 0.4
38 47 9
14 18.5 4.5
4 5 1
$8,370.07
Optimized Products

From/To Mexico Canada Venezuela Frankfurt Gary Sunchem Total Shipped

Mexico 3 0 0 0 3.2 0 6.2
Canada 0 2.6 0 0 1.1 0 3.7
Venezuela 0 0 4.5 0 0 0 4.5
Frankfurt 0 0 11.5 20 3.6 11.9 47
Gary 0 0 0 0 18.5 0 18.5
Sunchem 0 0 0 0 0 0 0
3 2.6 16 20 26.4 11.9

Production Plant
Annual Demand
Cost (per Capacity (in
Plant 1,000 lbs) 1,000 lbs)
(in 1,000 lbs) From/To Mexico Canada Venezuela
Mexico $95.01 2200 300 Mexico 0 $11.40 $7.00
Canada $97.35 370 260 Canada $11.00 0 $9.00
Venezuela $116.34 450 1600 Venezuela $7.00 $10.00 0
Frankfurt $76.69 4700 2000 Frankfurt $10.00 $11.50 $12.50
Gary $102.93 1850 2640 Gary $10.00 $6.00 $11.00
Sunchem $153.80 500 1190 Sunchem $14.00 $13.00 $12.50
100.7 7990 Import Duty 0.00% 0.00% 50.00%

Production+ Shipping+Import Cost Per Plant Per Item

Mexico Canada Venezuela Frankfurt Gary Sunchem
Mexico $95.01 $106.41 $153.02 $116.08 $110.78 $115.55
Canada $108.35 $97.35 $159.53 $119.19 $108.00 $116.97
Venezuela $123.34 $126.34 $116.34 $141.63 $132.44 $138.48
Frankfurt $86.69 $88.19 $133.79 $76.69 $91.85 $95.39
Gary $112.93 $108.93 $170.90 $123.66 $102.93 $122.36
Sunchem $167.80 $166.80 $249.45 $183.96 $179.53 $153.80

Optimized Costs
Mexico Canada Venezuela Frankfurt Gary Sunchem
Mexico $285.03 $0.00 $0.00 $0.00 $354.50 $0.00
Canada $0.00 $253.11 $0.00 $0.00 $118.80 $0.00
Venezuela $0.00 $0.00 $523.53 $0.00 $0.00 $0.00
Frankfurt $0.00 $0.00 $1,538.53 $1,533.80 $330.64 $1,135.13
Gary $0.00 $0.00 $0.00 $0.00 $1,904.21 $0.00
Sunchem $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Total= $7,977.28
Plant Capacity Idle
22 15.8
3.7 0
4.5 0
47 0
18.5 0
5 5

Frankfurt Gary Sunchem

$11.00 $11.00 $14.00
$11.50 $6.00 $13.00
$13.00 $10.40 $14.30
0 $11.20 $13.30
$10.00 0 $12.50
$14.20 $18.00 0
9.50% 4.50% 6.00%