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1、Chopra/Meindl5/eCHAPTER5CaseQuestions(seecorrespondingChapter5caseExcelspreadsheet)1.WhatisthecostSportStuff.comincursifallwarehousesleasedareinSt.Louis?Demandin2007isasshowninTable5-15Demand2007Northwest320,000Southwest200,000UpperMidwest160,000LowerMidwest220,000Northeast350,000Sou
2、theast175,000TotalDemand1,425,000ThecapacityofthecurrentwarehouseinSt.Louisis2,000,000unitsperyear,morethanenoughtoaccommodate2007’sdemand.Costsarecalculatedas:FixedWarehouseCost=$220,000VariableWarehouseCost=($0.20/unit)(1,425,000units)=$285,000HoldingCost=$475,000+0.165*1,425,000=$
3、710,125ShippingCost=$1,068,750ShippingRecoupedfromCustomer=(1,425,000/4)*$3=$1,068,750TotalNetworkCosts=$1,254,500Notethatthespreadsheetusedforthesecalculationsemployedthelinearholdingcostfunctionof$475,000+0.165F,whichresultsinaholdingcostof$710,125andatotalplancostof$1,254,500.Subs
4、equentholdingcostswillusethesinglelinearfunctiontodetermineholdingcosts.Ifdemandincreasesby80%peryearfor2008,2009,and2010andSportStuff.comwishestouseSt.Louisastheironlywarehousecenter,thefollowingdemandsandcostsarerealized.Theoptimalsolutionfor2008callsforonelargewarehouseratherthant
5、wosmallones.Demand2008Northwest576000Southwest360000UpperMidwest288000LowerMidwest396000Northeast630000Southeast315000TotalDemand2,565,000TotalShippingCost$1,994,625TotalHoldingCost$898,225Chopra/Meindl5/eWarehouseCost$888,000TotalShippingRecoup$1,923,750TOTALCOST$1,857,100For2009,on
6、esmallandonelargewarehouseisoptimal.Demand2009Northwest1036800Southwest648000UpperMidwest518400LowerMidwest712800Northeast1134000Southeast567000TotalDemand4,617,000TotalShippingCost$3,590,325TotalHoldingCost$2,473,610WarehouseCost$1,518,400TotalShippingRecoup$3,462,750TOTALCOST$4,119
7、,585For2010,onesmallandtwolargewarehousesareoptimalDemand2010Northwest1866240Southwest1166400UpperMidwest933120LowerMidwest1283040Northeast2041200Southeast1020600TotalDemand8,310,600TotalShippingCost$6,462,585TotalHoldingCost$5,538,747WarehouseCost$2,632,120TotalShippingRecoup$6,232,
8、950TOTALCOST
