Electrolux, a French company is planning to move the assembly of its refrigerators from France to Mexico. It takes 3 hours of labor to assemble a refrigerator, both in France and Mexico. Hourly labor rate in France is $ 25. Hourly labor rate in Mexico is $ 5. Holding cost in France per refrigerator per week is $ 2. In Mexico this is $ 1.5. In France orders are placed with factory weekly with lead time of 3 weeks. In Mexico orders are placed with factory weekly with lead time of 15 weeks. Weekly demand is 400 refrigerators with standard deviation of 100. It operates with in stock probability of 0.99 ( z = 2.33) What would be the change in total holding and labor cost per refrigerator by moving assembly from France to Mexico ? Show all formulas used, calculations and results

Electrolux, a French company is planning to move the assembly of its refrigerators from France to Mexico. It takes 3 hours of labor to assemble a refrigerator, both in France and Mexico. Hourly labor rate in France is $ 25. Hourly labor rate in Mexico is $ 5. Holding cost in France per refrigerator per week is $ 2. In Mexico this is $ 1.5. In France orders are placed with factory weekly with lead time of 3 weeks. In Mexico orders are placed with factory weekly with lead time of 15 weeks. Weekly demand is 400 refrigerators with standard deviation of 100. It operates with in stock probability of 0.99 ( z = 2.33) What would be the change in total holding and labor cost per refrigerator by moving assembly from France to Mexico ? Show all formulas used, calculations and results

Name: Electrolux, a French company is planning to move the assembly of its r
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Description: Electrolux, a French company is planning to move the assembly of its refrigerators from France to Mexico. It takes 3 hours of labor to assemble a refrigerator, both in France and Mexico.Hourly labor rate in France is $ 25. Hourly labor rate in Mexic

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section10.4: Simulation With Built-in Excel Tools

Problem 15P

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