Applichem

Applichem - The Transportation Problem

Product Made and Shipped During Past Year (in 100,000 lb units)

United
Plant/Country Mexico Canada Venezuela Europe Japan Total
States
Mexico City 3.0 6.3 7.9 17.2
Windsor, Ontario 2.6 2.6
Caracas, Venezuela 4.1 4.1
Frankfort, Germany 5.6 20.0 12.4 38.0
Gary, Indiana 14.0 14.0
Osaka, Japan 4.0 4.0 79.9
Total 3.0 2.6 16.0 20.0 26.4 11.9
79.9

Plant Production Costs and Capacity

Plant
Production
Capacity
Cost (per
(100,000
1,000 lbs.)
lb units)
Mexico City 95.01 22.0
Windsor, Ontario 97.35 3.7
Caracas, Venezuela 116.34 4.5
Frankfort, Germany 76.69 47.0
Gary, Indiana 102.93 18.5
Osaka, Japan 153.80 5.0
100.7

Transportation Cost (per 1,000 lbs), Import Duties and Demands for Release-
ease
United
Plant/Country Mexico Canada Venezuela Europe Japan
States
Mexico City 0.00 11.40 7.00 11.00 11.00 14.00
Windsor, Ontario 11.00 0.00 9.00 11.50 6.00 13.00
Caracas, Venezuela 7.00 10.00 0.00 13.00 10.40 14.30
Frankfort, Germany 10.00 11.50 12.50 0.00 11.20 13.30
Gary, Indiana 10.00 6.00 11.00 10.00 0.00 12.50
Osaka, Japan 14.00 13.00 12.50 14.20 13.00 0.00

Total Demand 3.00 2.60 16.00 20.00 26.40 11.90

Import Duty 0.0% 0.0% 50.0% 9.5% 4.5% 6.0%
 Applichem

Base Costs
United Plant
Plant/Country Mexico Canada Venezuela Europe Japan
States Capacity
Mexico City $0.00 $11.40 $7.00 $11.00 $11.00 $14.00 22.0
Windsor, Ontario 11.00 0.00 9.00 11.50 6.00 13.00 3.7
Caracas, Venezuela 7.00 10.00 0.00 13.00 10.40 14.30 4.5
Frankfort, Germany 10.00 11.50 12.50 0.00 11.20 13.30 47.0
Gary, Indiana 10.00 6.00 11.00 10.00 0.00 12.50 18.5
Osaka, Japan 14.00 13.00 12.50 14.20 13.00 0.00 5.0
Total Demand 3.0 2.6 16.0 20.0 26.4 11.9

Production Costs $95.01 $97.35 $116.34 $76.69 $102.93 $153.80

Import Duty 0.0% 0.0% 50.0% 9.5% 4.5% 6.0%

Combined Costs
United
Plant/Country Mexico Canada Venezuela Europe Japan
States
Mexico City $95.01 $106.41 $153.02 $116.08 $110.78 $115.55
Windsor, Ontario 108.35 97.35 155.03 118.10 107.73 116.19
Caracas, Venezuela 123.34 126.34 116.34 141.63 132.44 138.48
Frankfort, Germany 86.69 88.19 133.79 76.69 91.85 95.39
Gary, Indiana 86.69 108.93 170.90 123.66 102.93 94.54
Osaka, Japan 167.80 166.80 249.45 183.96 174.31 153.80

Candidate United Total

Mexico Canada Venezuela Europe Japan
Solution States Shipped
Mexico City 3.0 6.3 7.9 17.2
Windsor Ontario 2.6 2.6
Caracas, Venezuela 4.1 4.1
Frankfort, Germany 5.6 20.0 12.4 38.0
Gary, Indiana 14.0 14.0
Osaka, Japan 4.0 4.0
Requirements 3.0 2.6 16.0 20.0 26.4 11.9 79.9

Cost United
Mexico Canada Venezuela Europe Japan
Calculations States
Mexico City $285.03 $0.00 $963.99 $0.00 $0.00 $912.85
Windsor, Ontario 0.00 253.11 0.00 0.00 0.00 0.00
Caracas, Venezuela 0.00 0.00 476.99 0.00 0.00 0.00
Frankfort, Germany 0.00 0.00 749.20 1,533.80 1,138.88 0.00
Gary, Indiana 0.00 0.00 0.00 0.00 1,441.02 0.00
Osaka, Japan 0.00 0.00 0.00 0.00 0.00 615.20
$8,370.07
Base Costs
United Plant
Plant/Country Mexico Canada Venezuela Europe Japan
States Capacity
Mexico City $0.00 $11.40 $7.00 $11.00 $11.00 $14.00 22.0
Windsor, Ontario 11.00 0.00 9.00 11.50 6.00 13.00 3.7
Caracas, Venezuela 7.00 10.00 0.00 13.00 10.40 14.30 4.5
Frankfort, Germany 10.00 11.50 12.50 0.00 11.20 13.30 47.0
Gary, Indiana 10.00 6.00 11.00 10.00 0.00 12.50 18.5
Osaka, Japan 14.00 13.00 12.50 14.20 13.00 0.00 5.0
Total Demand 3.0 2.6 16.0 20.0 26.4 11.9

Production Costs $95.01 $97.35 $116.34 $76.69 $102.93 $153.80

Import Duty 0.0% 0.0% 50.0% 9.5% 4.5% 6.0%

Combined Costs
United
Plant/Country Mexico Canada Venezuela Europe Japan
States
Mexico City $95.01 $106.41 $153.02 $116.08 $110.78 $115.55
Windsor, Ontario 108.35 97.35 155.03 118.10 107.73 116.19
Caracas, Venezuela 123.34 126.34 116.34 141.63 132.44 138.48
Frankfort, Germany 86.69 88.19 133.79 76.69 91.85 95.39
Gary, Indiana 112.93 108.93 170.90 123.66 102.93 122.36
Osaka, Japan 167.80 166.80 249.45 183.96 174.31 153.80

Candidate United Total Idle

Mexico Canada Venezuela Europe Japan
Solution States Shipped Capacity
Mexico City 3.0 0.0 0.0 0.0 3.2 0.0 6.2 15.8
Windsor Ontario 0.0 2.6 0.0 0.0 1.1 0.0 3.7 0.0
Caracas, Venezuela 0.0 0.0 4.5 0.0 0.0 0.0 4.5 0.0
Frankfort, Germany 0.0 0.0 11.5 20.0 3.6 11.9 47.0 0.0
Gary, Indiana 0.0 0.0 0.0 0.0 18.5 0.0 18.5 0.0
Osaka, Japan 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5.0
Requirements 3.0 2.6 16.0 20.0 26.4 11.9

Cost United
Mexico Canada Venezuela Europe Japan
Calculations States
Mexico City $285.03 $0.00 $0.00 $0.00 $354.50 $0.00
Windsor, Ontario 0.00 253.11 0.00 0.00 118.50 0.00
Caracas, Venezuela 0.00 0.00 523.53 0.00 0.00 0.00
Frankfort, Germany 0.00 0.00 1,538.53 1,533.80 330.64 1,135.13
Gary, Indiana 0.00 0.00 0.00 0.00 1,904.20 0.00
Osaka, Japan 0.00 0.00 0.00 0.00 0.00 0.00
$7,976.98