Question 16"USC' STANDS FOR UNIT SHIPPING COSTAREA XAREA YAREA ZSUPPLIES300300PLANT A600USC: 5USC: 7USC: 7200300PLANT B500USC: 4USC: 2USC: 8DEMANDS300500300WHICH OF THE FOLLOWING IS TRUE ABOUT THE SUPPLY ALLOCATION ABOVE?The allocation of supplies is not yet optimal (i.e., the revenue can be increased)The allocation of supplies is not yet optimal (i.e., the total shipment cost can still be lowered)O The allocation of supplies is optimal (i.e., the total transportation cost cannot be lowered anymore))O The allocation of supplies is optimal (i.e., the revenue is maximized)

The problem can be solved using the transportation problem solving technique. In the Excel, the…

Answered: Question 16 'USC' STANDS FOR UNIT…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 56P

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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. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
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?
Q.2 AI Muhannad Industrial and Domestic Services, Oman requires on average 4000 sheets of A4 size papers per day at its different office locations in Muscat. Each time the purchase manager orders centrally the A4 size papers, the total expenses incurred to the company are estimated to be 10.6 OMR per order. Presently the company orders 350 reams of papers per order at a flat rate of 2.1 OMR per ream (one ream contains 500 A4 size papers). It takes almost a day for the local supplier to deliver the order. Considering the overall cost of the inventory and the manpower involved, the annual carrying costs for the company is estimated to be 35% of the cost for each ream of the paper. The company operates on 5 days a week over 46 weeks per year. (i) Is the present purchase policy economical for the company? If not, guide the purchase manager in selecting the best economical policy in terms of expected number of orders annually, ordered quantity per order, reorder point and the expected time…
Problem 3-14 (Algo) Demand for stereo headphones and music players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for this year was as follows: MONTH DEMAND (UNITS) 4,150 4,25e 3,950 4, 350 4,95e 4,650 5,25e 4,850 5,35e 5,65e 6,25e 5,95e January February March Аpril Мay June July August September October November December a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.8. (Do not round Intermedlate calculatlons. Round your answers to 2 decimal places.) Month Forecast January February March April May June July August September October November December b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors…
Q1/ One of the dairy canning companies wants to set up a special program for the production of cheese, as it decided to produce two types of cheese, each of which consists of a mixture of ingredients that are manufactured in special machines to become ready for use. The cost of the first type of cheese is 41 dinars, and the cost of the second type is 35 dinars. Each of the two types of cheese contains four components. The manufacture of cheese of the first type requires a mixture of (2, 1, 5, 0.6) and the second type (3, 1, 3, 0.25) units of the components (D, C, B, A). on the sequence. The weekly needs of foodstuffs (D, C, B, A) that are supposed to be provided for the cheese industry are (1250, 250, 900, 232.5) kg, respectively. Required: 1- Formulate a mathematical model for this problem. 2- The quantity of cheese production of the first and second types to obtain .the highest return using the graph method
ABC analysis on the following set of products Item Annual Demand Unit CostA 211 800 R9B 390 100 R90C 003 450 R6D 100 400 R100E 707 85 R2,000F 660 250 R320G 473 500 R75H 921 100 R75 Soft goods department sells 175 units per month of a certain large bath towel. The unit cost of a towel to the manufacturer is R2.50 and the cost of placing an order has been estimated to be R12.00. There is an inventory carrying charge of 27% of the unit cost per year. What is the optimal order quantity, the order frequency, and the annual holding and setup cost. If the ordering cost can be cut to R4.00, what will be the new economicorder quantity, the order frequency, and annual holding and setup costs.
Year Cost of Good Sold Beginning Inventory (In Pesos) Ending Inventory (In Pesos) 1 503,425 10,300 12,400 2 643,056 12,400 11,200 3 690,432 11,200 10,670 4 734,509 10,670 11,200 5 758,734 ? 10,987 REQUIRED Determine the inventory turnover for year 5. Determine the number of days the finished goods stay in inventory in Year 1. There was no improvement in inventory turnover in Year 5 compared to Year 1. This statement is not correct. Write YES or NO for the answer
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 15 units at $40 $600 Aug. 13 Purchase 5 units at $41 205 Nov. 30 Purchase 11 units at $42 462 Available for sale 31 units $1,267 There are 9 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-in, first-out (LIFO) method; and (c) weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar). a. First-in, first-out (FIFO) $fill in the blank 1 b. Last-in, first-out (LIFO) $fill in the blank 2 c. Weighted average cost $fill in the blank 3
Please do not give solution in image format thanku 1) Determine which shipping alternative would be most economical to ship 80 boxes of parts when each box has a price of $200 and holding costs are 30 percent of price, given this shipping information: overnight, $300, two-day, $260, six-day, $180.
Question 2: Metro Tech buys three components from a local wholesaler. The annual demand for components A, B, and C is 500, 3000, and 6000 units respectively. The agreed purchase price is $20, $15, and $10per unit for A, B, and C respectively for each product. The holding cost is estimated to be 20% per year. The ordering cost consists of handling and trucking costs. The handling cost is $100 for each type of component regardless of the number of items ordered. In addition to the handling cost, Metro Tech must pay a trucking cost of $500 for each delivery regardless of the total number of components in the order. Currently, all three items are being ordered independently using EOQ models. A proposal has been made to combine the ordering of the three items to save on trucking costs. Analyze the current and the prosed scenario and show the results below. Input Data: Demand items/year Item Cost in $/item Holding Cost as %/year Ordering Cost $/order # of Orders/ year Economic Order Quantity…
QUESTION 2 Mogomotsi, a 27 year old graduate from Kopong, runs a small stock farm from a family ownedfarm at Metsimotlhabe. He obtains supplies (supplementary feed, medicines, tools) from localagrishops, hardwares. The government has recently secured markets in the Middle East for smallstock and rolled out programs to encourage more citizens to enter small stock farming business.Demand for weaners (sheep and goats), feed, medicines and all other implements has increased.Stud breeders and large-scale farmers have ramped up production to explore this opportunity.Traditionally, livestock was sold to Botswana Meat Commission, the government has liberalizedthis market with all chain stores setting up to take advantage to set butchery section to sell meat. a. In light of the above, conduct an industry analysis using Porter’s Five Forces Model.
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January 4,120 February 4,220 March 3,920 April 4,320 May 4,920 June 4,620 July 5,220 August 4,820 September 5,320 October 5,620 November 6,220 December 5,920 a. Using linear regression analysis, what would you estimate demand to be for each month next year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors of estimate for safety. How many additional units should be held to meet this level of confidence? (Do not round intermediate calculations. Round…

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