3: Transportation VAM | Problem A 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) DEMAND (BOXES PER WEEK) WAREHOUSE 1 2 3 25,000 45,000 30,000 The estimated ship cost per box for the various routes are: ABCD 10,000 20,000 40,000 20,000
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- (b) A company manufactures three products R, S, and T using the same manufacturing facilities arranged in a six departments A, B,C, D, E, and F. The material handling is done by a forklift. The containers can carry 250, 500 and 750 pieces of the products R,S and T respectively. The annual demand for each product is 15000 units. Sequence of operations of product movement are given below. Construct the travel chart. Product R: A E D. F S: A B D E T: E + D FQ4: Bluestar TV Cable company is in the process of providing cable services to five new housing development areas. Figure depicts possible TV linkages among the five areas. The cable miles are shown in each arc. Determine the most economical cable network by also providing a linear programming formulation. 3 miles 9 10 6 5Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) are forecast as follows: Capacity Source Month 1 Month 2 Month 3 Month 4 Labor Regular time 245 275 280 300 Overtime 15 24 26 28 Subcontract 12 17 20 15 Demand 260 316 316 305 The cost of producing each dialysis unit is $985 on regular time, $1,310 on overtime, and $1,600 on a subcontract. Inventory carrying cost is $100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Minimizing cost using the transportation method, the optimal cost is $nothing (enter your response as a whole number).
- 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?Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 C $200,000 $5 600 Annual 500 Cost ($000) 400 300 200 100 2 4 6 8 10 14 16 18 20 Q (000s of units) i. Plot the total cost curves in the chart provided above and identify the range over which each location would be best. ii. Use break-even analysis to calculate exactly the break-even quantity that defines each range.Twenty Four Seven Convenience Store, which had opened its first store at New Delhi’s Lajpat Nagar in 2005, pres-ently operates 38 ‘round-the-clock’ stores in the India’s capital region1. Planning to open its new branch in the capital suburban, the chain has come up with three options which have been evalu-ated against the decision factors are follows: LocationFACTOR WEIGHT A B CMarket Size 30 8 6 5Accessibility 30 6 5 6Proximity to the current24-7’s distribution centres 25 5 6 4Store expansion potential 15 5 6 9 a) Using the factor-rating method, what is the recommended sitefor Twenty Four Seven’s new store?b) The store expansion potential is the least important factor inthe least. At what level of importance (weight) for the store’ expansion potential, the decision made in part (a) of this ques-tion will change.
- The Giant Farmer Company processes food for salein discount food stores. It has two plants: one inChicago and one in Houston. The company also oper-ates warehouses in Miami, Florida; Denver, Colorado;Lincoln, Nebraska; and Jackson, Mississippi. Forecastsindicate that demand soon will exceed supply and thata new plant with a capacity of 8,000 cases per week isneeded. The question is where to locate the new plant.Two potential sites are Buffalo, New York, and Atlanta,Georgia. The two tables at the bottom of this page givedata on capacities, forecasted demand, and shippingcosts that have been gathered.For each alternative new plant location, determine the ship-ping pattern that will minimize total transportation costs.Where should the new plant be located?Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) are forecast as follows: . Month 1 Month 2 Month 3 Month 4 Labor Regular time 225 265 280 300 Overtime 15 24 26 18 Subcontract 14 15 18 15 Demand 240 304 316 301 The cost of producing each dialysis unit is $875 on regular time, $1,310 on overtime, and $1,600 on a subcontract. Inventory carrying cost is $100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Minimizing cost using the transportation method, the optimal cost is $enter your response here ______ (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].
- Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) are forecast as follows: Capacity Source Month 1 Month 2 245 275 F1111 15 24 14 15 260 314 Labor Regular time Overtime Subcontract Demand Month 3 280 26 18 316 Month 4 300 24 15 301 The cost of producing each dialysis unit is $875 on regular time, $1,310 on overtime, and $1,500 on a subcontract. Inventory carrying cost is $100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Minimizing cost using the transportation method, the optimal cost is $ (enter your response as a whole number).Dennison Manufacturing makes large helical springs used inaircraft landing gear. The company has narrowed its potentialchoices for its new manufacturing facility to four cities. Thefollowing information is known about the manufacturing andshipping costs of locating in each of these four cities: a. Use break-even point analysis to determine where Den-nison should locate.b. Based solely on break-even quantity, if Dennison’s manu-facturing forecast for the foreseeable future is 40,000 unitsannually, where should he locate?Jerusalem Medical Ltd., an Israeli producer of port-able kidney dialysis units and other medical products, develops a 4- month aggregate plan. Demand and capacity ( in units) are forecast as follows: CAPACITY SOURCE MONTH 1 MONTH 2 MONTH 3 MONTH 4 Labor Regular time 235 255 290 300 Overtime 20 24 26 24 Subcontract 12 15 15 17 Demand 255 294 321 301 The cost of producing each dialysis unit is $ 985 on regular time, $ 1,310 on overtime, and $ 1,500 on a subcontract. Inventory carrying cost is $ 100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Set up a production plan that minimizes cost using the transportationmethod.