a) The following represents the transportation cost between three warehouses (1, 2, 3) and four markets (A, B, C, D): The following represents the transportation cost between three warehouses (1, 2, 3) and four markets (A, B, C, D): From Warehouse To Market Supply A B C D 1 14 24 18 28 48 2 17 18 25 16 56 3 30 16 22 30 32 Demand 41 34 35 20 i) Determine an initial solution and overall distribution cost using: a. the Minimum cell cost method, b. the Vogel’s approximation method (VAM) b) Draw a well annotated source destination chart illustrating the LP problem above c) Using systematic nomenclature for the variables, write out an LP formulation for the problem.

a) The following represents the transportation cost between three warehouses (1, 2, 3) and four markets (A, B, C, D): The following represents the transportation cost between three warehouses (1, 2, 3) and four markets (A, B, C, D): From Warehouse To Market Supply A B C D 1 14 24 18 28 48 2 17 18 25 16 56 3 30 16 22 30 32 Demand 41 34 35 20 i) Determine an initial solution and overall distribution cost using: a. the Minimum cell cost method, b. the Vogel’s approximation method (VAM) b) Draw a well annotated source destination chart illustrating the LP problem above c) Using systematic nomenclature for the variables, write out an LP formulation for the problem.

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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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?
QUESTION 1 A bottling water company distributes its product through four of its wholesale distributors situated at four locations. The weekly demand of the distributors and the cost of transportation per unit varies between different supply points and destination points. The supply, demand and transportation cost are as follows: Transportation cost per unit Supply Cape Coast 1 2 3 5 7 6 5000 Aburi 6 8 3 4000 Destination Ningo-Prampram 2 5 2000 Akuse 7 4 3 4000 (a) Write an equation for the anticipated cost minimization. (b) Draw a network model indicating the flow of the products. (c) Using the Northwest-Corner Rule, how many units should be shipped? Supply 6000 5000 4000
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Question 3Melcom Ghana Limited intends to build a new warehouse facility to serve its stores in six regionsin Ghana. The cities are Aflao, Obuasi, Mankessim, Takoradi and Tamale. The coordinates ofthese cities (in miles), using Accra as the origin (0,0) of a set of coordinates, and the annualtruckloads that supply each city are shown as follows:Destination X Y QuantityAflao 350 185 1200Obuasi 250 350 450Mankessim 450 300 900Takoradi 400 400 550Tamale 500 450 600a. Determine the best site using the centre-of-gravity technique b. Assume three proposed sites:???? 1: ?1 = 180, ?1 = 360???? 2: ?2 = 450, ?2 = 420???? 3: ?3 = 350, ?3 = 250are being considered. Which site should be selected based on the load-distance technique
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Problem 11-4 (Algo) The local supermarket buys lettuce each day to ensure really fresh produce. Each morning, any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week, the supermarket can buy fresh lettuce for $6.00 a box. The lettuce is sold for $12.00 a box and the dealer that sells old lettuce is willing to pay $1.40 a box. Past history says that tomorrow's demand for lettuce averages 230 boxes with a standard deviation of 33 boxes. How many boxes of lettuce should the supermarket purchase tomorrow? Note: Use Excel's NORM.S.INV() function to find the z value. Round your answer to the nearest whole number. Number of boxes
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Question 1By moving goods from locations where they are sourced to locations where theyare demanded, transportation provides the essential service of linking a companyto its suppliers and customers. It is an essential activity in the logistics function,supporting the economic utilities of place and time. Illustrate the FOUR (4) natureof freight transport in the business worlds. Answer should be with proper elaborations and examples. This is not a writting assignment. Thank you.