a company's business model was to operate through its facilities- Vancouver, Calgary, Winnipeg, Toronto(ontario), ottawa, Montreal and Halifax. Supply comes from South America, southeast Asia, and Florida. the company was shipping first to Toronto and then to each facility at a total cost of $23095.5 per week. The company is considering the possibility of opening a logistics facility in Miami. Toronto and Vancouver were already available as transshipment centres.  What would be the cost savings if Miami centre was opened and what would be the optimal shipment plan?

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
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a company's business model was to operate through its facilities- Vancouver, Calgary, Winnipeg, Toronto(ontario), ottawa, Montreal and Halifax. Supply comes from South America, southeast Asia, and Florida. the company was shipping first to Toronto and then to each facility at a total cost of $23095.5 per week. The company is considering the possibility of opening a logistics facility in Miami. Toronto and Vancouver were already available as transshipment centres.  What would be the cost savings if Miami centre was opened and what would be the optimal shipment plan? 

Shipping Costs (in Canadian dollars per box), Supply, and Demand
Ontario
Florida
Vancouver* Calgary Winnipeg
Ottawa
Montreal Halifax
| (Toronto)* (Miami)*
South America
14
20
n/a
n/a
n/a
n/a
n/a
Southeast Asia
35
20
35
n/a
n/a
n/a
n/a
n/a
n/a
Europe
Ontario (Toronto)*
Florida (Miami)*
30
15
35
n/a
n/a
n/a
n/a
n/a
15
14
13
3.5
3.5
4
10
10
10
7.5
7.5
10
Vancouver*
14
n/a
7
8
14
14
22
Supply (in boxes)
1,050
Demand (in boxes)
South America
Ontario (Toronto)*
381
Southeast Asia
30
Florida (Miami)*
Europe
Ontario (Toronto)*
unlimited
Vancouver*
191
| Calgary
Winnipeg
100
171
64
Ottawa
127
Montreal
184
Halifax
64
Transcribed Image Text:Shipping Costs (in Canadian dollars per box), Supply, and Demand Ontario Florida Vancouver* Calgary Winnipeg Ottawa Montreal Halifax | (Toronto)* (Miami)* South America 14 20 n/a n/a n/a n/a n/a Southeast Asia 35 20 35 n/a n/a n/a n/a n/a n/a Europe Ontario (Toronto)* Florida (Miami)* 30 15 35 n/a n/a n/a n/a n/a 15 14 13 3.5 3.5 4 10 10 10 7.5 7.5 10 Vancouver* 14 n/a 7 8 14 14 22 Supply (in boxes) 1,050 Demand (in boxes) South America Ontario (Toronto)* 381 Southeast Asia 30 Florida (Miami)* Europe Ontario (Toronto)* unlimited Vancouver* 191 | Calgary Winnipeg 100 171 64 Ottawa 127 Montreal 184 Halifax 64
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