Production Analysis date: cc:

Alistair wu, Dieter Handel,

Distribution Pattern

Alistair Wu has requested that I look at what the lowest shipping schedule and cost can be based on data that he has provided. He wants to know what the lowest possible cost of shipping will can be. Mr. Wu is also considering increasing production at the Shanghai factory from 1,300 to 2,800 units, and wants to ensure that this growth will be an affordable choice. The first chart that was given lists the factory capacity and what each warehouse demand is. The second chart lists the price of shipping from each factory to each warehouse. The chart looks at the demand in the warehouses as well as the cost to ship there from each factory. It then generates a cost effective shipping plan to ship products to the warehouse with least shipping expense and fills those warehouses first. It then allocates additional products to other warehouses that have higher shipping prices. This is evident with Shuzworld H and Shuzworld F, the program ships the most products to the lower priced warehouses 1 and 3. Warehouse 1 need 2,500 units but Shuzworld F only produces 2,200 units. That means Warehouse 1 will take all off the units from Shuzworld F and still have a demand of 300 units. Warehouse needs 1,800 units and Shuzworld H produces 2,300 units. This means Warehouse 3 will receive all of its units from Shuzworld H and Shuzworld H will still have an excess of 500 units.

After this, the lowest cost after the first is looked for. Warehouse 3 is already taken care of so none of the costs need to be looked at in that column. The next most efficient cost is Shuzworld H to Warehouse 1 and Shanghai to Warehouse 2. Shanghai can only produce 1,300 units so Warehouse 2 will take those units and still have a demand for 300 more units. Warehouse 1 only needs 300 more units to complete its demand so it will take those units from Shuzworld H leaving Shuzworld H