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- The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
- A firm has established a distribution network for the supply of a raw material critical to itsmanufacturing. Currently there are two origins for this material, which must be shipped to threemanufacturing plants. The current network has the following characteristics: COSTS PLANT 1 PLANT 2 PLANT 3 SUPPLY Raw Material source 1 $6 $8 $9 400 Raw Material source 2 $4 $7 $3 600 Demand 500 500 500 Supply < Demand The firm has identified two potential sites for a third raw material source; these are identified asCandidate A and Candidate B. From A, the costs to ship would be $9 to Plant 1, $10 to Plant 2,and $12 to Plant 3. From B, these costs would be $11, $14, and $8. The new source, wherever itis located, will have a capacity of 500 units. Solve with the transportation method. Which siteshould be selected?Companies A, B, and C supply components to three plants (F, G, and H) via two crossdocking facilities (D and E). It costs $4 to ship from D regardless of final destination and $3 to ship to E regardless of supplier. Shipping to D from A, B, and C costs $3, $4, and $5, respectively, and shipping from E to F, G, and H costs $10, $9, and $8, respectively. Suppliers A, B, and C can provide 200, 300 and 500 units respectively and plants F, G, and H need 350, 450, and 200 units respectively. Crossdock facilities D and E can handle 600 and 700 units, respectively. Logistics Manager, Aretha Franklin, had previously used "Chain of Fools" as her supply chain consulting company, but now turns to you for some solid advice. What is the objective function? Group of answer choices Max Z = $3AD + $3AE + $4BD + $3BE + $5CD + $3CE + $4DF + $4DG + $4DH + $10EF + $9EG + $8EH Min Z = $3AD + $3AE + $4BD + $3BE + $5CD + $3CE + $4DF + $4DG + $4DH + $10EF + $9EG + $8EH Min Z = $3AD + $3BE + $5CD + $3CE…Companies A, B, and C supply components to three plants (F, G, and H) via two crossdocking facilities (D and E). It costs $4 to ship from D regardless of final destination and $3 to ship to E regardless of supplier. Shipping to D from A, B, and C costs $3, $4, and $5, respectively, and shipping from E to F, G, and H costs $10, $9, and $8, respectively. Suppliers A, B, and C can provide 200, 300 and 500 units respectively and plants F, G, and H need 350, 450, and 200 units respectively. Crossdock facilities D and E can handle 600 and 700 units, respectively. Logistics Manager, Aretha Franklin, had previously used "Chain of Fools" as her supply chain consulting company, but now turns to you for some solid advice. Set up the solution in Excel and solve with Solver. What are total costs?
- Suppliers A, B, and C supply components to three plants -- F, G, and H via two transshipment facilities -- T1 and T2. It costs $4 to ship from T1 regardless of final destination and $3 to ship to T2 regardless of supplier. Shipping to T1 from A, B, and C costs $3, $4, and $5, respectively, and shipping from T2 to F, G, and H costs $10, $9, and $8, respectively. Suppliers A, B, and C can provide 200, 300 and 500 units respectively and plants F, G, and H need 350, 450, and 200 units respectively. The Logistics Manager has come to you for help. Answer the following question: Which of these is not an element of the objective function? Group of answer choices 4D-T1 600T1 9T2-G 3C-T2 Plz do fast asapCargo Loading. You are in charge of loading cargo ships for International Cargo Company (ICC) at a major East Coast port. You have been asked to prepare a loading plan for an ICC freighter bound for Africa. An agricultural commodities dealer would like to transport the following products aboard this ship:Commodity Tons Available Volume per Ton (cu.ft.) Profit per Ton ($)1 4,000 40 702 3,000 25 503 2,000 60 604 1,000 50 80You can elect to load any or all of the available commodities. However, the ship has three cargo holds with the following capacity restrictions: Cargo Hold Weight Capacity (tons) Volume Capacity (cu.ft.)Forward 3,000 100,000Center 5,000 150,000Rear 2,000 120,000More than one type of commodity can be placed in the same cargo hold. However, because of balance considerations, the weight in the forward cargo hold must be within 10 percent of the weight in the rear cargo hold, and the center cargo hold…Cargo Loading. You are in charge of loading cargo ships for International Cargo Company (ICC) at a major East Coast port. You have been asked to prepare a loading plan for an ICC freighter bound for Africa. An agricultural commodities dealer would like to transport the following products aboard this ship:Commodity Tons Available Volume per Ton (cu.ft.) Profit per Ton ($)1 4,000 40 702 3,000 25 503 2,000 60 604 1,000 50 80You can elect to load any or all of the available commodities. However, the ship has three cargo holds with the following capacity restrictions: Cargo Hold Weight Capacity (tons) Volume Capacity (cu.ft.)Forward 3,000 100,000Center 5,000 150,000Rear 2,000 120,000More than one type of commodity can be placed in the same cargo hold. However, because of balance considerations, the weight in the forward cargo hold must be within 10 percent of the weight in the rear cargo hold, and the center cargo hold…
- The Canadian government has built a large grain-shipping port at Churchill, Manitoba, on the Hudson Bay. Grain grown in southern Manitoba is carried by rail to Churchill during the open-water shipping season. Unfortunately the port is open only 50 days per year during July and August. This leads to some critical crew staffing decisions by management. The port has the capacity to load up to 7 ships simultaneously, provided that each loading bay has an assigned crew. The remote location and short shipping season results in a very high labor cost for each crew assigned, and management would like to minimize the number of crews. Ships arrive in a random pattern that can be modeled using the Poisson probability model. If a ship arrives and all available loading bays are filled, the ship will be delayed, resulting in a large cost that must be paid to the owner of the ship. This penalty was negotiated to encourage ship owners to send their ships to Churchill.Results of an initial analysis…Joburg Logistics (JL), a distributor of various products in Polokwane receives their products from suppliers in Durban, Cape Town, and Johannesburg. The company's management is concerned with the supply cost of a certain product that is supplied by a manufacturer in Durban. Currently JL has a contract with Transnet Freight Rail (TFR) for the transport of the orders from Durban. The following are the rail rate and transit time: Transit time (rail) Rail rate 5 days R2.75/unit The impact on the transport and inventory carrying cost because of this arrangement is a concern of the logistics director, Mrs Micky. As a result, Mrs Micky has requested the logistics manager to evaluate the option to use a 3PL service provider for the shipment from Durban to Johannesburg. The logistics manager has identified a certain 3PL company that has the capacity to perform this contract. However, in order to provide a transport rate, the 3PL company required the size and frequency of orders. JL currently…A circus is scheduled to appear in a city on a given date. The profits obtained are heavily dependent on the weather which can be classified as "good" or" bad". The circus owners may choose to setup operations in a large open field that is centrally located or rent a small building to stage a small version of the circus. The small building is not expected to be adversely affected by bad weather – thus will not affect the circus for it is well secure and has covered parking for the guests. The following shows the profits of the options and states of nature: States of nature Decision alternatives Set up in field Rent small building | Probability Good Bad $14,500 $5,000 -$15,000 $4,000 P(G)=0.5 P(B)=0.5 The circus owners may choose to delay the decision until the day before the event is due. At this time they can obtain the one-day weather report (free) which is usually reliable. This delay will however increase their set up cost by $1000.00 or if they choose to rent, the rental cost will…