A fruit juice manufacturer has recently begun negotiations with brokers in the areas where it intends to distribute its products. Before finalizing the agreements, however, the manager wants to determine shipping routes and costs. The firm has three plants with the capacities as shown below: Estimate demands in each of the warehouse localities are: PLANT CAPACITY (BOXES PER WEEK) WAREHOUSE DEMAND (BOXES PER WEEK) 1 2 3 25,000 45,000 30,000 The estimated ship cost per box for the various routes are: A B C D 10,000 20,000 40,000 20.000 TO FROM A B C D I 2 4 5 2 2 3 3 2 3 4 1 2 Demand Supply

A fruit juice manufacturer has recently begun negotiations with brokers in the areas where it intends to distribute its products. Before finalizing the agreements, however, the manager wants to determine shipping routes and costs. The firm has three plants with the capacities as shown below: Estimate demands in each of the warehouse localities are: PLANT CAPACITY (BOXES PER WEEK) WAREHOUSE DEMAND (BOXES PER WEEK) 1 2 3 25,000 45,000 30,000 The estimated ship cost per box for the various routes are: A B C D 10,000 20,000 40,000 20.000 TO FROM A B C D I 2 4 5 2 2 3 3 2 3 4 1 2 Demand Supply

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section: Chapter Questions

Problem 100P

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Similar questions

A supply chain manager faced with choosing among four possible locations has assessed each location according to the following criteria, where the weights reflect the importance of the criteria. Location Criteria Weight 1 2 3 4 Raw material availability 0.06 P VG OK VG Infrastructute 0.07 P G VG OK Transportation costs 0.33 G P OK P Labor relations 0.25 VG G P OK Quality of life 0.29 G OK P VG VG = Very good 5 pts; G = Good 4 pts; OK = Acceptable 3 pts ; P = Poor 1 pt. Using this information, determine the best and the worst location. Round your answers to two decimal places. Location Total Points 1 2 3 4 ______ is the best location and _______ is the worst location.
A valve manufacturer is considering three alternative locations for a new plant for manufacturing ball valves for oil and gas industry. Since the plant ships nationwide, revenue is assumed the same regardless of plant location. The estimated annual fixed and variable costs for each site is shown in TABLE Location Costs A B C Fixed (RM) 700,000 1,000,000 $1,500,000 Variable (RM) $28 $18 $12 Identify the range of output for which each location provides the lowest total cost. Show necessary graph and calculation used in the analysis. Discuss on the finding(s).
The Thor International Company operates four factories that ship products to five warehouses. The shipping costs, requirements, and capacities are shown in the tableau below. Use the transportation method to find the shipping schedule that minimizes shipping cost. Shipping Cost per Case to each Warehouse W2 Factory Сарacity W1 W3 W4 W5 Dummy $5 $5 $4 $7 $0 F1 60,000 $4 $5 $4 $6 $8 $0 F2 80,000 $6 $5 $7 $4 $5 $0 F3 80,000 $5 $9 $6 $7 $4 $0 F4 40,000 Demand 45,000 40,000 30,000 35,000 50,000 60,000 260,000 The minimum shipping cost is S | (Enter your response as a whole number.)
Brewery Ipana Oy has found some potential long-time partners in the restaurant business. To optimize the supply chain, the company is negotiating for contracts that would allow all production in the coming years to be sold to these partners. The contracts aim to shift production to 20 liter barrels of beer, which would become the sole product of Ipana Oy. In case the negotiations are successful, Ipana Oy estimates its typical year would look as follows: the quantity shipped to the customer is 18000 units at a price of 300 €/unit. The gross profit percentage is 40 % and the yearly fixed costs are 1500000 €. (Additional text: The variable cost per unit [€/unit] for products that would be produced in the scenario above is 180 [€/unit].) Question: Calculate the critical sales price in the estimate [€/product].
DM Office Products (DMOP) Is a wholesale supplier of office products with one facility in Pennsylvania. It has decided to bulld a new distribution warehouse in the state of New York to help serve the growing demand In that market. It has four major customers located In Buffalo, Syracuse, Albany, and New York City. Though New York City is the largest market, it also has the greatest competition, and DMOP Is not a major player there. When DMOP ships an order to a customer, It uses its own small fleet of two trucks to deliver, so the cost of delivery Is essentially the same for a full or partlally full truck. The expected number of annual shipments to each city and their coordinates on an x, y grid is shown in the following table. x-COORDINATES 340 y-COORDINATES 865 CITY NUMBER OF SHIPMENTS Buffalo 85 Syracuse Albany New York City 1,435 2,315 2,290 915 89 645 129 45 69 Use the centroid method to recommend a location for the new warehouse for DMC (Round your answers to 1 decimal place.) Cx…
DM Office Products (DMOP) Is a wholesale supplier of office products with one facility in Pennsylvania. They have decided to build a new distribution warehouse in the state of New York to help serve the growing demand in that market. They have four major customers located in Buffalo, Syracuse, Albany, and New York City. Though New York City is the largest market, It also has the greatest competition, and DMOP is not a major player there. When DMOP ships an order to a customer, they use their own small fleet of two trucks to dellver, so the cost of delivery is essentlally the same for a full or partially full truck. The expected number of annual shipments to each city and their coordinates on an x, y grid is shown in the following table. CITY x-COORDINATES y-COORDINATES NUMBER OF SHIPMENTS Buffalo 325 850 78 Syracuse Albany New York City 1,420 2,300 2,275 900 82 630 122 25 62 Use the centrold method to recommend a location for the new warehouse for DMOP. (Round your answers to 1 decimal…
DM Office Products (DMOP) is a wholesale supplier of office products with one facility in Pennsylvania. It has decided to build a new distribution warehouse in the state of New York to help serve the growing demand in that market. It has four major customers located in Buffalo, Syracuse, Albany, and New York City. Though New York City is the largest market, it also has the greatest competition, and DMOP is not a major player there. When DMOP ships an order to a customer, it uses its own small fleet of two trucks to deliver, so the cost of delivery is essentially the same for a full or partially full truck. The expected number of annual shipments to each city and their coordinates on an x, y grid is shown in the following table. CITY x-COORDINATES y-COORDINATES NUMBER OF SHIPMENTS Buffalo 340 865 85 Syracuse 1,435 915 89 Albany 2,315 645 129 New York City 2,290 45 69
For each alternative new plant location, determine the shipping pattern that will minimize total transportation costs. Where should the new plant be located? Plant Capacity (Cases per Week) Warehouse Demand (Cases per Week) Chicago 10,000 Miami 7,000 Houston 7,500 Denver 9,000 New plant 8,000 Lincoln 4,500 Total 25,500 Jackson 5,000 Total 25,500 Shipping Cost to Warehouse (per Case) Plant Miami Denver Lincoln Jackson Chicago $7.00 $2.00 $4.00 $5.00 Houston $3.00 $1.00 $5.00 $2.00 Buffalo (alternative 1) $6.00 $9.00 $7.00 $4.00 Atlanta (alternative 2) $2.00 $10.00 $8.00 $3.00
Ram Roy's firm has developed the following supply,demand, cost, and inven tory data. Allocate production capacityto meet demand at a minimum cost using the transportationmethod. What is the cost? Assume that the initial inven tory has noholding cost in the fi rst period and backorders are not permitted.
Supply Solve the following Transportation problem using best cell method What is the total cost? 1 2 3 4 A 25 3 10 5 9 Destination B 35 2 1 2 6 C 10 1 2 8 3 D 30 1 2 8 3 25 20 25 30
There are four basic resources available, also known as production factors, which can be used by a busines such as Afri-Fast to deliver goods and services. Identify the four (4) factors or production, give a theoretical description of each, and provide a suitable practical example of how each an be used ina logistics service organisation such as Afri-Fast.
Designing the Distribution Network for Michael’s Hardware Ellen Lin, vice president of supply chain at Michael’s Hardware, was looking at the financial results from the past quarter and thought that the company could significantly improve its distribution costs, especially given the recent expansion into Arizona. Transportation costs had been very high, and Ellen believed that moving away from LTL shipping to Arizona would help lower transportation costs without significantly raising inventories. Michael’s had 32 stores each in Illinois and Arizona and sourced its products from eight suppliers located in the Midwest. The company began in Illinois and its stores in the state enjoyed strong sales. Each Illinois store sold, on average, 50,000 units a year of product from each supplier (for annual sales of 400,000 units per store). The Arizona operation was started about five years ago and still had plenty of room to grow. Each Arizona store sold 10,000 units a year from each supplier (for…