In the initial solution of a transportation problem, the only restriction is that there should be non zero quantities in a majority of the boxes when we must have a number which is equal to the number of rows plus the number of columns minus one of boxes which contain non zero quantities. demand must equal supply. all constraints must not be satisfied. all constraints must be satisfied.
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- Suppose we are ordering computer chips. Suppose thatin each order, exactly 10% of all chips are defective. Assoon as the order arrives, we find out which chips aredefective and return them for a complete refund. Whatwould be the optimal ordering policy in this situation?Solve this please theoretically not on excel A detergent manufacturer manages a plant for a major retail. The average monthly demand is 12,000 jugs of detergent. Each jug costs $(1.3) and is sold to the retailer at a wholesale price of $8. The manufacturer and the retailer use an annual holding cost of (29)%. For each order placed, the retailer incurs an ordering cost of $80. Manufacturer incurs the cost of transportation and loading which totals $2,000 per order shipped. a. To minimize its inventory-related costs, what lot size will be the best for the retailer? What is the annual inventory-related cost of the manufacturer and the retailer as a result of this policy? b. What lot size minimizes the inventory-related costs across both the manufacturer and the retailer? How much reduction in cost relative to (a) results from this policy? c. Design an all-unit quantity discount that results in the retailer ordering the quantity in (bJust need help finding the sausage constraint quantity value
- Happy Henry’s car dealer sells an imported car called the EX123. Once everythree months, a shipment of the cars is made to Happy Henry’s. Emergencyshipments can be made between these three-month intervals to resupply the carswhen inventory falls short of demand. The emergency shipments require twoweeks, and buyers are willing to wait this long for the cars, but will generally goelsewhere before the next three-month shipment is due.From experience, it appears that the demand for the EX123 over a three-monthinterval is normally distributed with a mean of 60 and a variance of 36. The cost ofholding an EX123 for one year is $500. Emergency shipments cost $250 per carover and above normal shipping costs.a. How many cars should Happy Henry’s be purchasing every three months?b. Repeat the calculations, assuming that excess demands are back-ordered fromone three-month period to the next. Assume a loss-of-goodwill cost of $100 forcustomers having to wait until the next three-month period and a…In the fashion retail industry transshipment is the flow of the products from a retail location to another one to satisfy the demand at the receiver location. Sender only sends a product if it has excess inventory to its demand and it occurs to rebalance the inventory among retail locations. Assume that there is a retailer with I stores. There are O products nominated for transshipment. The available inventory rio, i = 1,2, ..., I, o = 1,2, ..., 0, and demand levels dio, i = 1,2, ..., I, o = 1,2, ..., 0, for all O, stores are known. Moreover, the sales prices of these products are known and are the same in all stores, po, o = 1,2, ... 0. There is a transportation cost when a product is sent from a store to another, Cij, i, j = = 1, 2, ... D which is independent for the type of the product. Assume that if a product o is transshipped from store i, all its available inventory, i.e., rio, must be sent to a single store, thus, partial transshipment is not allowed. However, a store can…The difference(s) between the basic EOQ model and theproduction order quantity model is(are) that:a) the production order quantity model does not requirethe assumption of known, constant demand.b) the EOQ model does not require the assumption ofnegligible lead time.c) the production order quantity model does not requirethe assumption of instantaneous delivery.d) all of the above.
- Irvine Consolidated Closets (ICC) builds and sells shelving for homes and offices. For a certain shelving unit, SS1, ICC has gross requirements of 500, 800, and 650 units in weeks 4, 5, and 6, respectively. The lead-time on the SS1 shelving unit is two weeks. ICC currently has 600 of the SS1 on hand and this product is ordered in lot sizes of 300, that is, the order in multiples of 300. Determine the MRP schedule for the SS1 unit over a time frame of weeks 1 through 6. When and for how many units should ICC place their orders for the SS1? A key component of the SS1 is the TT2. Each SS1 contains four TT2s. Currently TT2’s are ordered in lots of size 1000 and there are 800 on hand. TT2s have a one-week lead time. Determine the MRP schedule for the TT2 unit over a time frame of weeks 1 through 6. When and for how many units should ICC place their orders for the TT2? Suppose annual demand for the SS1 shelving unit is 32,500. ICC’s holding cost is $0.50 per week for each SS1…The Delta company uses three raw materials to make cakes. Delta is trying to reduce warehousing costs and establishes three policies to that end: i) The annual number of orders for all products must be at least 20 per contractual terms with transportation providers. ii) The average inventory in units must be a maximum of 1800. iii) Because the raw material is perishable, there can never be more than 2000 units in inventory of raw material 1. Raw material 2 has a maximum allowed of 1200 units and the raw material 3 can store maximum 400 units. The following table shows the product information: Materia Demanda Costos por unidad Costo por prima (u/año) ordenar ($) 2200 2 300 2 500 4 650 3 3000 10 100 Consider an interest rate of 10% per year. A) Formulate the problem as a mathematical programming model that minimizes the total annual cost. b) Represent the problem in a single equation including the constraints in terms of lambda c) Find the optimized batch sizes for the company's raw…7. Maribel is considering installing ice cream stalls on Turtle Beach. The length of the beach is 5 miles long. On average, in a week, there are 1,000 subathers that come to the beach and each value an icecream at $5. Transportation costs are $2.5. Each icecream costs $0.5 to make and there are $40 as a fixed maintenance cost per stall. 1. Find the optimal number of stalls for Maribel? 2.What is the profit at optimal number of stalls?
- Show that the optimal order quantity for the backloggeddemand model is always at least as large as the EOQ butthat the maximum inventory level for the backloggeddemand model cannot exceed the EOQ.A boat manufacturer requires 14 outboard engines per day in its assembly operations. No shortages are to be allowed. The engine manufacturer can produce 100 outboard engines per day. The cost associated with initiating engine manufacturing action is $2,500 and the holding cost is $3.00 per engine per day. The manufacturing cost is $1,000 per engine. This question consists of three parts. (1) Find the minimum-cost production quantity. (2) Find the minimum-cost procurement level of production lead time is 45 days. (3) Calculate the total system cost per day.1. Solve the following exercise using dynamic programming: a company distributes an article with a demand of 15,000 articles per year, it is Considering that annual retention costs are $5 per item, it is estimated that the demand is delayed and this causes a cost of $10 per year. Everytime that an order is placed this causes costs of $50. The demand during the time of delivery follows a normal distribution with means of 200 units and a variance of 5 units.