) Determine an initial solution and overall distribution cost using: a)the Minimum cell cost method, b) the Vogel’s approximation method (VAM)
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Question 3
- 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)
Step by step
Solved in 10 steps
- 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. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?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 4000Question #3 Solve the following transportation problem. Use the Northwest- corner method to obtain the starting initial feasible solution. Source Destination Supply 1 2 3 4 1 10 16 12 200 2 12 12 13 300 3 14 8 13 4 300 Demand 100 200 450 250
- Q2. Pharmaceutical company producing asingle product sold it through five agencies situated in different cities. All of sudden there rouse a demand for the product in another five cities that didn't agency of the company. The company is now facing the problem of deciding on how to assign the existing agencies in order to dispatch the product to needy cities in such a waythat the travelling distance is minimized. The distance between the surplus and deficit cities in kilometer is given the following table. Surplus city Deficit cities Deficit cites A1 160 130 115 190 200 B1 135 120 130 160 175 C1 140 110 125 170 185 D1 50 50 80 80 110 E1 55 35 80 80 105 Determine the optimum assignment schedule.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…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
- Problem: Sales of industrial vacuum cleaners at Yarena Supply CO. over the past 13 months are as follows: Sales in P1,000 Month Sales in P1,000 Month 11 January 14 August 14 February 17 September 15 March 12 October 10 April 14 November 15 May 16 December 17 June 11 January 11 July Required suing a moving average with three periods, determine the demand for vacuum cleaners for next February?Multiple choice questions1.1 Transport is viewed as a derived demand. Derived demand in this context means:a) A policy to limit congestion in city centresb) An individual's ability and willingness to buy transport servicesc) A nation's ability and willingness to provide an adequate transport infrastructured) The demand for transport services is determined by the demand to transport goodsand passengers from one place to another1.2 Holding everything else constant, an improvement in technology affecting the manufactureof a particular good will . . . . a) Shift the supply curve to the left.b) Shift the supply curve to the rightc) Shift both the demand curve and the supply curve to the right.d) Shift both the demand curve and the supply curve to the left.1.3 If the demand for Product A does not change as the price of Product B increases thena) The two goods are unrelated.b) The two goods are substitutes.c) The two goods are complements.d) The consumers of Product B have enjoyed an increase…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
- 1. Read each of the following statements and determine which method of transportation is the best option. Provide a reason for your choice. Oil shipping from an oil field in Oklahoma to a refinery in Houston, Texas. a. b. Corn transported from a farm to a local grain elevator. C. Farm equipment manufactured in Canada transported to a warehouse in Wisconsin. d. Cut flowers sent from Hawaii to California.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.Ancient history of logistics distribution regarding probability?