What analysis processes does Cosway-Poplar need to apply in order to arrive at the most appropriate modal selection decision?Provide a quantitative solution (hint: develop this as an Excel file).What
- What analysis processes does Cosway-Poplar need to apply in order to arrive at the most appropriate modal selection decision?
- Provide a quantitative solution (hint: develop this as an Excel file).
- What questions does Cosway-Poplar need to answer? Is there sufficient data to address the questions? If not, what additional data do they need?
- What is your recommendation for modal section and production location? Please justify.
- Here are some suggestions for providing structure to your Excel analysis and what I will be looking for in the solution.
- Calculate the production costs for each location. You can calculate annual production costs for each machine and then break down into unit costs and monthly costs.
- Decide on a time frame for the relocation. The case states it can be as little as six months or up to two years. A six-month timeframe would be the simplest.
- Calculate the safety stock costs for the relocation transition period, considering the in-transit time. This is where the safety stock concepts of the Baumol formula come into play. We are not calculating EOQ values for long-term production, as there is not enough data for this. We are just focusing on the relocation period.
- Calculate the transportation costs for shipping the equipment to each location.
- The above calculations will provide you with quantitative information to help make a decision where production should be located. There is also qualitative information in the case to consider as well.
- Max of five pages, double-spaced (not smaller than 11-point font), plus not more than two pages of charts, tables, or figures.
- Citations can be listed on a separate page and are NOT included in the page count.
