TABLE 5-7 Capacity, Demand, Production, and Transportation Costs for Sunchem United States Germany Japan Brazil India Demand (tons/year) CHAPTER 5 Network Design in the Supply Chain 145 US$ Mark Yen Real Rupee North America 600 1,300 2,000 270 South America Europe Japan Asia 1,200 800 2,200 2,300 190 1,200 1,400 2,100 US$ 1.000 0.502 0.0093 0.562 0.023 1,300 600 2,000 1,700 1,400 300 2,100 2,100 1,000 800 200 120 1,400 1,400 1,300 TABLE 5-8 Anticipated Exchange Rates for 2006 Mark Yen 107.7 1.993 1 1,300. 900 0.0185 1.124 0.046 100 54.07 1 60.65 2.47 Capacity Tons/Year 185 475 50 200 80 Real 1.78 0.89 0.016 1 0.041 Production Cost/Ton $10,000 15,000 marks 1,800,000 yen 13,000 real 400,000 rupees Rupee 43.55 21.83 0.405 24.52 1 along with the cost of producing and shipping an air conditioner to each of the four markets. Where should DryIce build its factories and how large should they be?/nassigned to one home office? Ho pared to allowing multiple offices to handle a single state? 2. DryIce, Inc., is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand for the year 2006 to bé 180,000 units in the South, 120,000 units in the Midwest, 110,000 units in the East, and 100,000 units in the West. Managers at DryIce are designing the manufacturing network and have selected four poten- tial sites-New York, Atlanta, Chicago, and San Diego. Plants could have a capacity of either 200,000 or 400,000 units. The annual fixed costs at the four locations are shown in Table 5-6, TABLE 5-6 Production and Transport Costs for Drylce, Inc. New York Atlanta Chicago Annual fixed cost of 200,000 plant Annual fixed cost of 400,000 plant East South Midwest West $6 million $10 million $211 $232 $240 $300 $5.5 million $9.2 million $232 $212 $230 $280 $5.6 million $9.3 million $238 $230 $215 $270 San Diego $6.1 million $10.2 million $299 $280 $270 $225

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