
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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The National Western Railroad’s rail network covers most of the U.S. West and Midwest. On a
daily basis it sends empty freight cars from various locations in its rail network to its customers
for their use. Sometimes there are not enough freight cars to meet customer demand. The transportation
costs for shipping empty freight cars, shown as follows, are directly related to distance
traveled and the number of rail centers that must handle the car movement. Determine the number of empty freight cars that should be sent from each rail network location
to customers to meet demand at the minimum total cost.

Transcribed Image Text:Customer Location
Freight Car
Location
A. Milwaukee B. Omaha C. Topeka D. Tucson E. Denver F. Wichita G. Minneapolis H. Memphis L. Kansas City Supply
1. Portland
27
23
23
26
21
29
40
45
23
1,100
2. Fresno
31
26
25
22
20
34
47
43
26
720
3. Long
38
31
32
18
24
27
51
48
34
1,450
Beach
4. Salt Lake
28
18
17
24
9.
20
32
35
19
980
City
5. El Paso
41
27
24
11
18
22
46
30
25
650
6. Houston
38
24
22
16
27
25
41
28
23
1,025
7. St. Louis
8. Chicago
15
14
10
27
23
12
19
10
9.
1,330
12
13
15
31
26
17
14
15
14
1,275
Demand
974
1,225
1,690
710
1,261
663
301
479
1,227
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- The two most frequently cited reasons for starting a private trucking company are service and expense. Discuss the benefits of private trucking in terms of operation and expense.arrow_forwardIn this problem, your company is a distributor of products. You serve as an inventorymanager for the regional distribution center (DC) here in the Atlanta area. In this role,you schedule the purchase and shipment of products from various suppliers inbound to theAtlanta DC. Once you receive the products at the DC, they are stored in inventory untilthey are picked, packed, and shipped outbound to your company’s downstream customersin response to orders.For each of your products, you currently use a single, dedicated supplier. Each of yoursuppliers ships their products to you from their facility using trucking services, and theyprovide you with choices of different LTL or truckload trucking carriers depending on yourshipment size.Consider managing inventory now for product 101 produced by Supplier A. Currently,you face demand for product 101 of about 200 units per week. Each unit of product 101has a purchase cost p of $500 and you decide to value your inventory at the slightly higherrate…arrow_forwardThe following network describes a transportation scenario in which there are four sources A, B, C, and D, and three destinations P, Q, and R. (The numbers next to each arrow represent the cost of transporting one unit from that particular source to the destination located at the other end of that arrow). Write the mathematical formulation of the problem. Use the Excel Solver to solve the problem. Generate the answer and sensitivity reports in Excel, and submit your Excel workbook as a separate attachment. Provide the solution obtained in the space provided. What is the optimal cost of transportation?arrow_forward
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