Table 1:

Regional Sales and Plant Capacity (in Millions of kgs) Fixed and Var
Sales Plant Fixed
Sr. Sr.
No. Market Plant Capacity No. Plant Cost
Highcal Relax (Million $)

Latin
1 Brazil 18 7 7 1 Brazil 20
America

2 Europe Germany 45 15 12 2 Germany 45

Asia w/o
3 Japan India 18 5 3 3 India 18

4 Japan Japan 10 7 8 4 Japan 13

5 Mexico Mexico 30 3 3 5 Mexico 30
6 U.S. U.S. 22 18 17 6 U.S. 21

Table 3:
Transportation Costs ($ / kg)
Sr. From To Latin Asia w/o Latin
Europe Japan Mexico U.S.
No. America Japan America
1 Brazil 0.20 0.45 0.50 0.50 0.40 0.45 30%
2 Germany 0.45 0.20 0.35 0.40 0.30 0.30
3 India 0.50 0.35 0.20 0.30 0.50 0.45
4 Japan 0.50 0.40 0.30 0.10 0.45 0.45
5 Mexico 0.40 0.30 0.50 0.45 0.20 0.25
6 U.S. 0.45 0.30 0.45 0.45 0.25 0.20
 Table 2:
Fixed and Variable Production Costs by Plant

Highcal Relax Fixed Highcal Cost ($/kg) Relax Cost ($/kg)

Fixed Cost Cost Raw Raw
(Million $) (Million $) Production Production
Material Material

5 5 3.6 5.1 4.6 6.6

13 13 3.9 6.0 5.0 7.0

3 3 3.6 4.5 4.5 6.0

4 4 3.9 6.0 5.1 7.0

6 6 3.6 5.0 4.6 6.5
5 5 3.6 5.0 4.5 6.5

Table 4:
Import Duties (%)
Asia w/o
Europe Japan Mexico U.S.
Japan
3% 27% 6% 35% 4%
 Fixed Cost (in Million $)
Market Plant Capacity
Plant Plant Highcal Relax
Latin
Brazil 18
Brazil 20.0 5.0 5.0 America

Europe Germany 45
Germany 45.0 13.0 14.0
Asia w/o
Japan India 18
India 18.0 4.0 4.0
Japan 17.0 6.0 6.0 Japan Japan 10
Mexico 30.0 6.0 6.0 Mexico Mexico 30
U.S. 21.0 5.0 5.0 U.S. U.S. 22

Variable Cost = Sum of Raw material cost + Production cost + transportation cost

Variable Material, Production and Transportation Cost for Highcal Variable Material, Prod
Latin Asia w/o
From To Europe Japan Mexico U.S. From To
America Japan
Brazil 8.90 9.15 9.20 9.20 9.10 9.15 Brazil
Germany 10.35 10.10 10.25 10.30 10.20 10.20 Germany
India 8.60 8.45 8.30 8.40 8.60 8.55 India
Japan 10.40 10.30 10.20 10.00 10.35 10.35 Japan
Mexico 9.00 8.90 9.10 9.05 8.80 8.85 Mexico
U.S. 9.05 8.90 9.05 9.05 8.85 8.80 U.S.

Total Variable Cost including Duties= Variable Cost * (1+ Duty %age)

Total Variable Cost for Highcal Tota

Latin Asia w/o
From To America Europe Japan Japan Mexico U.S. From To
Brazil 8.90 9.42 11.68 9.75 12.29 9.52 Brazil
Germany 13.46 10.10 13.02 10.92 13.77 10.61 Germany
India 11.18 8.70 8.30 8.90 11.61 8.89 India
Japan 13.52 10.61 12.95 10.00 13.97 10.76 Japan
Mexico 11.70 9.17 11.56 9.59 8.80 9.20 Mexico
U.S. 11.77 9.17 11.49 9.59 11.95 8.80 U.S.

Decision Variables

Decision Variables

Plants Open / Shut, Lines On / Off Highcal Quantity Shipped From / To

 Plant
Highcal Relax On
Open Latin Asia w/o
Plant On (1) / (1) / Off From To Europe
(1) / Shut Off (0) (1) America Japan
(0)
Brazil Brazil
Germany Germany
India India
Japan Japan
Mexico Mexico
U.S. U.S.

Constraints

Capacity Demand
Total Latin Asia w/o
Plant
Capacity Highcal
Relax Demand Europe
America Japan
Brazil Highcal
Germany Relax
India
Japan
Mexico
U.S.
 Sales Objective Function
Highcal Relax
7 7
Total cost $ 30.20

15 12

5 3
7 8
3 3
18 17

Variable Material, Production and Transportation Cost for Relax

Latin Asia w/o
Europe Japan Mexico U.S.
America Japan
11.40 11.65 11.70 11.70 11.60 11.65
12.45 12.20 12.35 12.40 12.30 12.30
11.00 10.85 10.70 10.80 11.00 10.95
12.60 12.50 12.40 12.20 12.55 12.55
11.50 11.40 11.60 11.55 11.30 11.35
11.45 11.30 11.45 11.45 11.25 11.20

Total Variable Cost for Relax

Latin Asia w/o
America Europe Japan Japan Mexico U.S.

11.40 12.00 14.86 12.40 15.66 12.12

16.19 12.20 15.68 13.14 16.61 12.79
14.30 11.18 10.70 11.45 14.85 11.39
16.38 12.88 15.75 12.20 16.94 13.05
14.95 11.74 14.73 12.24 11.30 11.80
14.89 11.64 14.54 12.14 15.19 11.20

ntity Shipped From / To Relax Quantity Shipped From / To

 Latin Asia w/o
Japan Mexico U.S. From To Europe Japan Mexico
America Japan

Brazil
Germany
India
Japan
Mexico
U.S.

Demand
Japan Mexico U.S.
To
U.S.
 Table 1:
Regional Sales and Plant Capacity (in Millions of kgs)
Highcal Relax
Sr. Market Plant Capacity Sr. No.
No.
Sales Prod Sales Prod

Latin
1 Brazil 18.0 7.0 11.0 7.0 7.0 1
America

2 Europe Germany 45.0 15.0 15.0 12.0 0.0 2

3 Asia w/o India 18.0 5.0 10.0 3.0 8.0 3

Japan
4 Japan Japan 10.0 7.0 2.0 8.0 0.0 4
5 Mexico Mexico 30.0 3.0 12.0 3.0 18.0 5
6 U.S. U.S. 22.0 18.0 5.0 17.0 17.0 6

Table 3:
Transportation Costs ($ / kg)
Sr. From To Latin Asia w/o Latin
Europe Japan Mexico U.S.
No. America Japan America
1 Brazil 0.20 0.45 0.50 0.50 0.40 0.45 30%
2 Germany 0.45 0.20 0.35 0.40 0.30 0.30
3 India 0.50 0.35 0.20 0.30 0.50 0.45
4 Japan 0.50 0.40 0.30 0.10 0.45 0.45
5 Mexico 0.40 0.30 0.50 0.45 0.20 0.25
6 U.S. 0.45 0.30 0.45 0.45 0.25 0.20
 Table 2:
Fixed and Variable Production Costs by Plant

Highcal Cost ($/kg) Relax Cost ($/kg)

Plant Fixed Highcal Relax Fixed
Plant Cost Fixed Cost Cost (Million
Raw Raw Producti
(Million $) (Million $) $) Material Production Material on

Brazil 20.0 5.0 5.0 3.6 5.1 4.6 6.6

Germany 45.0 13.0 13.0 3.9 7.0 5.0 8.5

India 18.0 3.0 3.0 3.6 4.5 4.5 6.0

Japan 13.0 4.0 4.0 3.9 7.5 5.1 9.0

Mexico 30.0 6.0 6.0 3.6 5.0 4.6 6.5
U.S. 21.0 5.0 5.0 3.6 5.0 4.5 6.5

Table 4:
Import Duties (%)
Asia w/o
Europe Japan Mexico U.S.
Japan
3% 27% 6% 35% 4%
 Fixed Cost (in Million $)
Market Plant Capacity
Plant Plant Highcal Relax
Latin
Brazil 18
Brazil 20.0 5.0 5.0 America

Europe Germany 45
Germany 45.0 13.0 14.0
Asia w/o
Japan India 18
India 18.0 4.0 4.0
Japan 17.0 6.0 6.0 Japan Japan 10
Mexico 30.0 6.0 6.0 Mexico Mexico 30
U.S. 21.0 5.0 5.0 U.S. U.S. 22

Variable Cost = Sum of Raw material cost + Production cost + transportation cost

Variable Material, Production and Transportation Cost for Highcal Variable Material, Prod
Latin Asia w/o
From To Europe Japan Mexico U.S. From To
America Japan
Brazil 8.90 9.15 9.20 9.20 9.10 9.15 Brazil
Germany 10.35 10.10 10.25 10.30 10.20 10.20 Germany
India 8.60 8.45 8.30 8.40 8.60 8.55 India
Japan 10.40 10.30 10.20 10.00 10.35 10.35 Japan
Mexico 9.00 8.90 9.10 9.05 8.80 8.85 Mexico
U.S. 9.05 8.90 9.05 9.05 8.85 8.80 U.S.

Total Variable Cost including Duties= Variable Cost * (1+ Duty %age)

Total Variable Cost for Highcal Tota

Latin Asia w/o
From To America Europe Japan Japan Mexico U.S. From To
Brazil 8.90 9.42 11.68 9.75 12.29 9.52 Brazil
Germany 13.46 10.10 13.02 10.92 13.77 10.61 Germany
India 11.18 8.70 8.30 8.90 11.61 8.89 India
Japan 13.52 10.61 12.95 10.00 13.97 10.76 Japan
Mexico 11.70 9.17 11.56 9.59 8.80 9.20 Mexico
U.S. 11.77 9.17 11.49 9.59 11.95 8.80 U.S.

Decision Variables

Decision Variables

Plants Open / Shut, Lines On / Off Highcal Quantity Shipped From / To

 Plant
Highcal Relax On
Open Latin Asia w/o
Plant On (1) / (1) / Off From To Europe
(1) / Shut Off (0) (1) America Japan
(0)
Brazil Brazil
Germany Germany
India India
Japan Japan
Mexico Mexico
U.S. U.S.

Constraints

Capacity Demand
Total Latin Asia w/o
Plant
Capacity Highcal
Relax Demand Europe
America Japan
Brazil Highcal
Germany Relax
India
Japan
Mexico
U.S.
 Sales Objective Function
Highcal Relax
7 7
Total cost $ 30.20

15 12

5 3
7 8
3 3
18 17

Variable Material, Production and Transportation Cost for Relax

Latin Asia w/o
Europe Japan Mexico U.S.
America Japan
11.40 11.65 11.70 11.70 11.60 11.65
12.45 12.20 12.35 12.40 12.30 12.30
11.00 10.85 10.70 10.80 11.00 10.95
12.60 12.50 12.40 12.20 12.55 12.55
11.50 11.40 11.60 11.55 11.30 11.35
11.45 11.30 11.45 11.45 11.25 11.20

Total Variable Cost for Relax

Latin Asia w/o
America Europe Japan Japan Mexico U.S.

11.40 12.00 14.86 12.40 15.66 12.12

16.19 12.20 15.68 13.14 16.61 12.79
14.30 11.18 10.70 11.45 14.85 11.39
16.38 12.88 15.75 12.20 16.94 13.05
14.95 11.74 14.73 12.24 11.30 11.80
14.89 11.64 14.54 12.14 15.19 11.20

ntity Shipped From / To Relax Quantity Shipped From / To

 Latin Asia w/o
Japan Mexico U.S. From To Europe Japan Mexico
America Japan

Brazil
Germany
India
Japan
Mexico
U.S.

Demand
Japan Mexico U.S.
To
U.S.