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and Caracas in South America. Following are the supplies c available leather from each tanning facility and the process ing capacity at each plant (in pounds) for this particular or der of leather jackets: GLOBAL SHIPPING AT ERKEN APPAREL INTERNATIONAL Crken Apparel International manufactures clothing items around the world. It has currently contracted with a U.S. retail clothing wholesale distributor for men's goatskin and lamb- skin leather jackets for the next Christmas season. The distrib- utor has distribution centers in Indiana, North Carolina, and Tanning Factory Goatskin Lambskin Supply (Ib.) Supply (Ib.) Mende 4,000 4,400 Foggia Saragosa Feira 3,700 5,300 Pennsylvania. The distributor supplies the leather jackets to a discount retail chain, a chain of mall boutique stores, and a department store chain. The jackets arrive at the distribution centers unfinished, and at the centers the distributor adds a 4,650 6,850 6,500 5,100 El Tigre 3,600 5,700 unique lining and label specific to each of its customers. The distributor has contracted with Erken to deliver the following number of leather jackets to its distribution centers in late fall: Plant Production Capacity (Ib.) Madrid 7,800 Naples Limoges 5,700 8,200 Lambskin Jackets Distribution Goatskin Jackets Sao Paulo 7,600 Center Caracas 6,800 Indiana 1,000 780 1,400 1,600 North Carolina 950 In the production of jackets at the plants, 37.5% of th goatskin leather and 50% of the lambskin leather is wast (i.e., it is discarded during the production process and sol for other byproducts). After production, a goatskin jacke weighs approximately 3 pounds, and a lambskin jacke weighs approximately 2.5 pounds (neither with lining which are added in the United States). Following are the costs per pound, in U.S. dollars, fo tanning the uncut leather, shipping it, and producing th leather jackets at each plant: Pennsylvania 1,150 Erken has tanning factories and clothing manufacturing plants to produce leather jackets in Spain, France, Italy, Venezuela, and Brazil. Its tanning facilities are in Mende in France, Foggia in Italy, Saragosa in Spain, Feira in Brazil, and El Tigre in Venezuela. Its manufacturing plants are in Limoges, Naples, and Madrid in Europe and in Sao Paulo

and Caracas in South America. Following are the supplies c available leather from each tanning facility and the process ing capacity at each plant (in pounds) for this particular or der of leather jackets: GLOBAL SHIPPING AT ERKEN APPAREL INTERNATIONAL Crken Apparel International manufactures clothing items around the world. It has currently contracted with a U.S. retail clothing wholesale distributor for men's goatskin and lamb- skin leather jackets for the next Christmas season. The distrib- utor has distribution centers in Indiana, North Carolina, and Tanning Factory Goatskin Lambskin Supply (Ib.) Supply (Ib.) Mende 4,000 4,400 Foggia Saragosa Feira 3,700 5,300 Pennsylvania. The distributor supplies the leather jackets to a discount retail chain, a chain of mall boutique stores, and a department store chain. The jackets arrive at the distribution centers unfinished, and at the centers the distributor adds a 4,650 6,850 6,500 5,100 El Tigre 3,600 5,700 unique lining and label specific to each of its customers. The distributor has contracted with Erken to deliver the following number of leather jackets to its distribution centers in late fall: Plant Production Capacity (Ib.) Madrid 7,800 Naples Limoges 5,700 8,200 Lambskin Jackets Distribution Goatskin Jackets Sao Paulo 7,600 Center Caracas 6,800 Indiana 1,000 780 1,400 1,600 North Carolina 950 In the production of jackets at the plants, 37.5% of th goatskin leather and 50% of the lambskin leather is wast (i.e., it is discarded during the production process and sol for other byproducts). After production, a goatskin jacke weighs approximately 3 pounds, and a lambskin jacke weighs approximately 2.5 pounds (neither with lining which are added in the United States). Following are the costs per pound, in U.S. dollars, fo tanning the uncut leather, shipping it, and producing th leather jackets at each plant: Pennsylvania 1,150 Erken has tanning factories and clothing manufacturing plants to produce leather jackets in Spain, France, Italy, Venezuela, and Brazil. Its tanning facilities are in Mende in France, Foggia in Italy, Saragosa in Spain, Feira in Brazil, and El Tigre in Venezuela. Its manufacturing plants are in Limoges, Naples, and Madrid in Europe and in Sao Paulo

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 46P
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and Caracas in South America. Following are the supplies of available leather from each tanning facility and the process- ing capacity at each plant (in pounds) for this particular or- der of leather jackets: GLOBAL SHIPPING AT ERKEN APPAREL INTERNATIONAL Erken Apparel International manufactures clothing items around the world. It has currently contracted with a U.S. retail clothing wholesale distributor for men's goatskin and lamb- skin leather jackets for the next Christmas season. The distrib- utor has distribution centers in Indiana, North Carolina, and Tanning Factory Goatskin Lambskin Supply (Ib.) Supply (Ib.) 4,000 3,700 Mende 4,400 5,300 Foggia Saragosa Pennsylvania. The distributor supplies the leather jackets to a discount retail chain, a chain of mall boutique stores, and a dep 6,500 5,100 3,600 4,650 Feira 6,850 El Tigre ment store chain. The jackets arrive at the distribution centers unfinished, and at the centers the distributor adds a 5,700 unique lining and label specific to each of its customers. The distributor has contracted with Erken to deliver the following number of leather jackets to its distribution centers in late fall: Plant Production Capacity (Ib.) Madrid 7,800 Naples Limoges Sao Paulo 5,700 8,200 7,600 Lambskin Jackets Distribution Goatskin Center Jackets Caracas 6,800 Indiana 1,000 1,400 1,600 780 North Carolina 950 In the production of jackets at the plants, 37.5% of the goatskin leather and 50% of the lambskin leather is waste (i.e., it is discarded during the production process and sold for other byproducts). After production, a goatskin jacket weighs approximately 3 pounds, and a lambskin jacket weighs approximately 2.5 pounds (neither with linings, which are added in the United States). Following are the costs per pound, in U.S. dollars, for tanning the uncut leather, shipping it, and producing the leather jackets at each plant: Pennsylvania 1,150 Erken has tanning factories and clothing manufacturing plants to produce leather jackets in Spain, France, Italy, Venezuela, and Brazil. Its tanning facilities are in Mende in France, Foggia in Italy, Saragosa in Spain, Feira in Brazil, and El Tigre in Venezuela. Its manufacturing plants are in Limoges, Naples, and Madrid in Europe and in Sao Paulo
Transcribed Image Text:and Caracas in South America. Following are the supplies of available leather from each tanning facility and the process- ing capacity at each plant (in pounds) for this particular or- der of leather jackets: GLOBAL SHIPPING AT ERKEN APPAREL INTERNATIONAL Erken Apparel International manufactures clothing items around the world. It has currently contracted with a U.S. retail clothing wholesale distributor for men's goatskin and lamb- skin leather jackets for the next Christmas season. The distrib- utor has distribution centers in Indiana, North Carolina, and Tanning Factory Goatskin Lambskin Supply (Ib.) Supply (Ib.) 4,000 3,700 Mende 4,400 5,300 Foggia Saragosa Pennsylvania. The distributor supplies the leather jackets to a discount retail chain, a chain of mall boutique stores, and a dep 6,500 5,100 3,600 4,650 Feira 6,850 El Tigre ment store chain. The jackets arrive at the distribution centers unfinished, and at the centers the distributor adds a 5,700 unique lining and label specific to each of its customers. The distributor has contracted with Erken to deliver the following number of leather jackets to its distribution centers in late fall: Plant Production Capacity (Ib.) Madrid 7,800 Naples Limoges Sao Paulo 5,700 8,200 7,600 Lambskin Jackets Distribution Goatskin Center Jackets Caracas 6,800 Indiana 1,000 1,400 1,600 780 North Carolina 950 In the production of jackets at the plants, 37.5% of the goatskin leather and 50% of the lambskin leather is waste (i.e., it is discarded during the production process and sold for other byproducts). After production, a goatskin jacket weighs approximately 3 pounds, and a lambskin jacket weighs approximately 2.5 pounds (neither with linings, which are added in the United States). Following are the costs per pound, in U.S. dollars, for tanning the uncut leather, shipping it, and producing the leather jackets at each plant: Pennsylvania 1,150 Erken has tanning factories and clothing manufacturing plants to produce leather jackets in Spain, France, Italy, Venezuela, and Brazil. Its tanning facilities are in Mende in France, Foggia in Italy, Saragosa in Spain, Feira in Brazil, and El Tigre in Venezuela. Its manufacturing plants are in Limoges, Naples, and Madrid in Europe and in Sao Paulo
The shipping costs ($/lb.) from each port in Europe and South America to the U.S. ports and the available truck and rail capacity for transport at the U.S. ports are as Plant ($/lb.) Tanning Factory Madrid Naples Limoges Sao Paulo Caracas follows: Mende $24 $22 $16 $21 $23 Foggia Saragosa 31 17 22 19 22 18 25 28 23 25 Feira U.S. Port ($/lb.) 16 18 El Tigre 14 15 Port New Orleans Jacksonville Savannah Note that the cost of jacket production is the same for goatskin and lambskin. Also, leather can be tanned in France, Spain, and Italy and shipped directly to the South American plants for jacket production, but the opposite is not possible due to high tariff restrictions (i.e., tanned leather is not shipped to Europe for production). Once the leather jackets are produced at the plants in Europe and South America, Erken transports them to ports in Lisbon, Marseilles, and Caracas and then from these ports to U.S. ports in New Orleans, Jacksonville, and Savannah. The available shipping capacity at each port and the trans- portation costs from the plants to the ports are as follows: Lisbon $2.35 $1.90 $1.80 Marseilles 3.10 2.40 2.00 Caracas 1.95 2.15 2.40 Сараcity (lb.) 8,000 5,200 7,500 The transportation costs ($/lb.) from the U.S. ports to the three distribution centers are as follows: Distribution Center ($/lb.) U.S. Port Indiana North Carolina Pennsylvania Port ($/lb.) New Orleans $0.65 $0.52 $0.87 Plant Lisbon Marseilles Caracas Jacksonville 0.43 0.41 0.65 Savannah 0.38 0.34 0.50 Madrid 0.75 1.05 Naples Limoges 3.45 1.35 2.25 0.60 Erken wants to determine the least costly shipments of material and jackets that will meet the demand at the U.S. distribution centers. Develop a transshipment model for Sao Paulo 1.15 Caracas 0.20 Сараcity (lb.) 8,000 5,500 9,000 Erken that will result in a minimum cost solution.
Transcribed Image Text:The shipping costs ($/lb.) from each port in Europe and South America to the U.S. ports and the available truck and rail capacity for transport at the U.S. ports are as Plant ($/lb.) Tanning Factory Madrid Naples Limoges Sao Paulo Caracas follows: Mende $24 $22 $16 $21 $23 Foggia Saragosa 31 17 22 19 22 18 25 28 23 25 Feira U.S. Port ($/lb.) 16 18 El Tigre 14 15 Port New Orleans Jacksonville Savannah Note that the cost of jacket production is the same for goatskin and lambskin. Also, leather can be tanned in France, Spain, and Italy and shipped directly to the South American plants for jacket production, but the opposite is not possible due to high tariff restrictions (i.e., tanned leather is not shipped to Europe for production). Once the leather jackets are produced at the plants in Europe and South America, Erken transports them to ports in Lisbon, Marseilles, and Caracas and then from these ports to U.S. ports in New Orleans, Jacksonville, and Savannah. The available shipping capacity at each port and the trans- portation costs from the plants to the ports are as follows: Lisbon $2.35 $1.90 $1.80 Marseilles 3.10 2.40 2.00 Caracas 1.95 2.15 2.40 Сараcity (lb.) 8,000 5,200 7,500 The transportation costs ($/lb.) from the U.S. ports to the three distribution centers are as follows: Distribution Center ($/lb.) U.S. Port Indiana North Carolina Pennsylvania Port ($/lb.) New Orleans $0.65 $0.52 $0.87 Plant Lisbon Marseilles Caracas Jacksonville 0.43 0.41 0.65 Savannah 0.38 0.34 0.50 Madrid 0.75 1.05 Naples Limoges 3.45 1.35 2.25 0.60 Erken wants to determine the least costly shipments of material and jackets that will meet the demand at the U.S. distribution centers. Develop a transshipment model for Sao Paulo 1.15 Caracas 0.20 Сараcity (lb.) 8,000 5,500 9,000 Erken that will result in a minimum cost solution.
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