managerial science
I. Introduction
This case study aims to provide the best decision on which two locations would minimize cost and at the same time meet the demands of each outlet of Custom Campers, Inc. Each outlet is located in different states and Ricky needs to make sure that the company would be able to satisfy the consumers' demands for Shower-Rifics in each state. There are many factors that Ricky and each outlet manager should consider before they can make a decision. These factors include transportation costs, meeting each outlet's needed supply and being able to continue providing their consumers quality Shower-Rifics that is expected from them. Rockford, Madison and Detroit are the three possible choices for the two new manufacturing plants. These locations vary in distance from the existing outlets in Chicago, Milwaukee, Minneapolis and Detroit which is why there are differences in transportation costs. Constraints like minimizing transportation costs and meeting the demands of all the outlets are to be considered so that Ricky can make the best decision for the company. Availability of the materials needed, specifically fiberglass should be accessible to all manufacturing plants so they there is a better chance to produce the Shower-Rifics. For Custom Campers, Inc. to fully minimize their cost they should be able to minimize labour hours, expenses for salaries and materials that will be used and shipping costs.
II. ProblemStatement
Custom Campers, Inc's main dilemma is deciding among which of the three possible locations would minimize their cost but at the same time maximize their production of Shower-Rifics. Solving this dilemma would permit them to provide each of their outlets the needed supply to meet their respective demands.
III. Model Application
Objectives:
- To be able to come up with the best decision in selecting the two new locations for Custom Campers, Inc's new manufacturing plant
- To be able to minimize all costs that the company will be
This case study aims to provide the best decision on which two locations would minimize cost and at the same time meet the demands of each outlet of Custom Campers, Inc. Each outlet is located in different states and Ricky needs to make sure that the company would be able to satisfy the consumers' demands for Shower-Rifics in each state. There are many factors that Ricky and each outlet manager should consider before they can make a decision. These factors include transportation costs, meeting each outlet's needed supply and being able to continue providing their consumers quality Shower-Rifics that is expected from them. Rockford, Madison and Detroit are the three possible choices for the two new manufacturing plants. These locations vary in distance from the existing outlets in Chicago, Milwaukee, Minneapolis and Detroit which is why there are differences in transportation costs. Constraints like minimizing transportation costs and meeting the demands of all the outlets are to be considered so that Ricky can make the best decision for the company. Availability of the materials needed, specifically fiberglass should be accessible to all manufacturing plants so they there is a better chance to produce the Shower-Rifics. For Custom Campers, Inc. to fully minimize their cost they should be able to minimize labour hours, expenses for salaries and materials that will be used and shipping costs.
II. ProblemStatement
Custom Campers, Inc's main dilemma is deciding among which of the three possible locations would minimize their cost but at the same time maximize their production of Shower-Rifics. Solving this dilemma would permit them to provide each of their outlets the needed supply to meet their respective demands.
III. Model Application
Objectives:
- To be able to come up with the best decision in selecting the two new locations for Custom Campers, Inc's new manufacturing plant
- To be able to minimize all costs that the company will be