Sunchem, a manufacturer of printing inks, has five manufacturing plants worldwid

ID: 2671057 • Letter: S

Question

Sunchem, a manufacturer of printing inks, has five manufacturing plants worldwide. Their

locations and capacities are shown in Table 5-7 along with the cost of producing 1 ton of ink

at each facility. The production costs are in the local currency of the country where the plant

is located. The major markets for the inks are North America, South America, Europe,

Japan, and the rest of Asia. Demand at each market is shown in Table 5-7. Transportation

costs from each plant to each market in U.S. dollars are shown in Table 5-7. Management

must come up with a production plan for 2006.

(a) If exchange rates are expected as in Table 5-8, and no plant can run below 50 percent

of capacity, how much should each plant produce and which markets should

each plant supply?

(b) If !here are no limits on the amount produced in a plant, how much should each

plant produce?

(d) How should Sunchem account for the fact that exchange rates fluctuate over time?

Hey idiot, u asked a question but u did not provide any of the tables. How do u expect any solution?

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.