A fruit juice manufacturer has recently begun negotiations with brokers in the areas where it intends to distribute itsproducts. 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 (PIECES PER WEEK)WAREHOUSE123400800600ABCDDEMAND (PIECES PER WEEK)900200400300The estimated ship cost per box for the various routes are:ΤΟFROMABCD15791221072338964Row/Column Opportunity CostDemandRow/ColumnCellTotal CostOpportunity CostCost of the above Test of unallocated CellsallocationSupplyAmountchar

Answered: A fruit juice manufacturer has recently…

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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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?
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].
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.
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.)
Develop a network showing the origin nodes, destinations, arcs, cost per arc, supply, and demand. Match the correct answer to each question. Warehouse A B C D City E City F City G City H Warehouse Supply. 0.51 0.21 0.52 0.41 4000 Question 1 0.31 Question 2 0.56 0.43 0.35 0.41 0.28 City Demand 4,400 3,000 6,500 4,700 Match the correct answer to the following questions: 1. What is the supply constraint for Warehouse D? 2. What demand constraint for City H? 0.32 0.54 0.33 4000 0.54 0.34 0.52 6300 6000 [Choose ] [Choose ] > >
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).
Q3)) A firm has established a distribution network for the supply of a raw material critical to its manufacturing Currently there are three origins for this raw material, which must be shipped to three manufacturing plants. The current network has the following characteristics: Origin 1 Origin 2 Origin 3 DEMAND Plant 1 $7 $10 Plant 2 $5 $7 $8 45 Plant 3 $2 $3 SUPPLY 30 40 50 120/120 $3 $9 35 40 (a) Calculate a solution using the northwest-corner rule. Calculate the cost of this solution. (b) Calculate the solution using intuitive lowest cost method. Calculate the cost of this solution. (c) Using the solution in (c), calculate improvement indices, iterate once. Can you achieve a better solution? If yes, what is the cost of this solution?
3. Figure 1 Daily Subway and Bus Use in Five Major Cities 0.75 0.5 0.25 Subway OBus London Tokyo Singapore Hong Kong Figure 2 Subway vs. Bus Ridership, New York City OBus Subway 1970 1980 1990 2000 2010 Information in figure I suggests that public transportation users in London Information in Figure I supports the author's point that buses are growing in popularity as a means of urban transport by indicating that A) take subways and buses at similar rates. B) are unusually reliant on buses. C) take at least one subway trip daily. D) take subways at about the same rate as people A) many people around the world take at least one bus trip every day. B) bus ridership surpasses subway ridership in some major cities. C) people in Tokyo make far more trips by bus daily than they do trips by subway. D) the number of bus trips taken by people in major cities has substantially increased. in New York. 2 Which of the following statements about bus use in New York City is best supported by…
1. A company would like to develop an aggregate plan and evaluate its cost using the transportation method. Solve using Excel of the QM software. Note: do not do this manually Related data are shown in the tables below Demand forecast Period Demand (Unit) 1 80 2 90 3 40 Supply Capacity available (units) Regular time 40 65 30 Period 1 2 3 Other Data Beginning Inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost Overtime 20 12 10 30 R 100 R 150 R 200 R 5 Subcontract 10 5 5
Dobb's Ltd Wants to choose the best location for its new aluminum plant. The manager ofproductions and operations has three possible locations to choose from. His assistantrecommends that he use break-even analysis location technique to help determine whichlocation is best based on costs. Assuming: Total fixed cost = 80,000 Price per unit= 20 AVC (Average variable cost) = 40 Break-even point= Total fixed cost / (AVC-Price per unit) Break-even point = 80,000/ (40-20) Break-even point = 4,000 1) Demonstrate to the OM manager using graph how to go about choosing the best location using thenumerical example designed above.
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.
Consider the transportation problem having the following parameter table: Source Demand 12 2 Destination 1 8 6 3 2 54 3 Supply 4 2 (a) Use the northwest corner rule to obtain an initial BF solution, and then solve this problem manually by the transportation simplex method. (Keep track of your time.) (b) Reformulate this problem as a general linear programming problem, and then solve it manually by the simplex method. Keep track of how long this takes you, and contrast it with the computation time for part (a).

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