Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 6.5, Problem 10P
Summary Introduction

Interpretation:Percentage increase in total shipping costs at optimal solution is to be determined.

Concept Introduction:

Linear programming (LP) is an optimization methodology which is multivariable having single objective. Linear programming involves solving linear problems and providing optimized solution based on the applicable constraints.

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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…
Given the following cost information, solve for the optimal transportation cost: Use MODI Method At the third solution, what is the value of R3? At the third solution, what is the value of K3? How much is the cost of the third solution?
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
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