Business
Business, 18.04.2020 00:04, galaalexa

Create a decision tree using the following information. outline all steps and formulas used in the process, thank you.

To establish their manufacturing operations, FitBoost has determined that they can set up manufacturing plants in any of the following countries: US, Mexico, Canada, China, or Vietnam. Note that they can select any combination of these and could select all five if that is what you recommend.
In order to create a manufacturing plant in any of these countries, FitBoost will have to pay a one-time cost. These costs (and all other data) are given in the Excel file that accompanies this PDF. Note that the costs given are based on the monetary unit of the appropriate country. Your group must look up the most recent exchange rate figures so FitBoost has all of their costs in US Dollars.
FitBoost has also been able to estimate total production capacity at each manufacturing plant. By total, this means that the sum of activity trackers produced (all three types) must not exceed this total production capacity. This capacity is 6500 units in the US, 3355 units in Mexico, 5400 units in Canada, 4620 units in China, and 5000 units in Vietnam.
In addition, FitBoost also wants to identify how much of each of their products to produce in each plant for a year. Clearly, they can only produce goods in a location if they decide to actually open a manufacturing plant in that location. The per unit cost (i. e. the cost associated with producing one of the activity trackers) of the material costs, labor costs, and shipping costs are given in the attached file for each activity tracker and manufacturing location. Again, these are given in the local currency which must be converted into US Dollars.
Given this information, FitBoost informs you that your recommendation must also satisfy specific requirements which they have determined. Specifically, they have contracted 5500 Boost XS, 5700 Boost Now, and 3250 Boost Pro every year and you must ensure that the production across all the operating facilities meets these goals. Additionally, for tax purposes, FitBoost would like 65% or less of their total production (again, across all activity trackers) to be produced in North American countries. However, they do not want to appear to favor international labor too much, so they require 35% or more of their total production to come from North American countries.
Finally, each unit of product manufactured in a foreign country will suffer a tariff tax. These taxes vary by product and country and are given in the data file. Since the costs of these tariffs are simply wasted (i. e. they are not value added), FitBoost would like to ensure that that the cumulative tariff tax of your recommended solution does not exceed

$35,000 US Dollars during a year. Additionally, FitBoost is very environmentally conscience and would like to ensure that the greenhouse gases produced by shipping the final products does not exceed 22,000 kilograms CO2 emitted per year. The CO2 emitted per product for each country are given in the data file.
With all of this information, FitBoost would like to see final locations and production plan as recommended by your team. Their objective is to minimize upfront (locating the plant) and yearly

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