General Appliance Corporation (GAC) produces refrigerators at three plants: Akron, Evansville, and Chicago. They shipthem to distribution centers in Cincinnati, Indianapolis, and Pittsburgh. The accounting, production, and marketingdepartments have provided the information in the table given below, which shows the unit cost of shipping between anyplant and distribution center, plant capacities over the next planning period, and distribution center demands. GAC'ssupply chain manager faces the problem of determining how much to ship between each plant and distribution center tominimize the total transportation cost, not exceed available capacity, and meet customer demand.Cincinnati Indianapolis PittsburghCapacityAckron $2.30Evansville $2.35Chicago $1.70Demand 500What is the minimum total transportation cost?$2.50$1.65$1.951000$2.15$2.95$2.9910001200800500

The transportation problem is a classic optimization problem in operations research and logistics…

supply chain manager faces the problem of determining how much to ship between each plant and distribution center minimize the total transportation cost, not exceed available capacity, and meet customer demand. Cincinnati Indianapolis Pittsburgh Ackron $2.30 Evansville $2.35 Chicago $1.70 Demand 500 What is the minimum total transportation cost? $2.50 $1.65 $1.95 1000 $2.15 $2.95 $2.99 1000 Capacity 1200 800 500

supply chain manager faces the problem of determining how much to ship between each plant and distribution center minimize the total transportation cost, not exceed available capacity, and meet customer demand. Cincinnati Indianapolis Pittsburgh Ackron $2.30 Evansville $2.35 Chicago $1.70 Demand 500 What is the minimum total transportation cost? $2.50 $1.65 $1.95 1000 $2.15 $2.95 $2.99 1000 Capacity 1200 800 500

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 5.2SC: 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. 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?
Usman traders is a wholesale business unit based in Dubai having operations in Oman. The company is dealing with textile equipment in large quantities. The business has a separate stores department which maintains a full-fledged stores register which will be updated on a day to day basis with all the stock movements. At the end of the previous month, the company management has called for a strategic meeting to discuss the future plans to improve the performance of the business. One of the partner has raised his concern about the increasing total cost of the business and he suggested to use any appropriate Inventory control technique to reduce the overall cost of the company. The management accountant is considering to implement EOQ purchase in the business to reduce the overall cost of the company. Upon request, the stores department has provided with the following information to estimate the EOQ. Annual demand for the tableware is given as 10000 Units and the business has to spend OMR…
Ram Roy's firm has developed the following supply,demand, cost, and inven tory data. Allocate production capacityto meet demand at a minimum cost using the transportationmethod. What is the cost? Assume that the initial inven tory has noholding cost in the fi rst period and backorders are not permitted.
1. A company would like to develop an aggregate plan and evaluate its cost using the transportation method. Solve using Excel of the QM software. Note: do not do this manually Related data are shown in the tables below Demand forecast Period Demand (Unit) 1 80 2 90 3 40 Supply Capacity available (units) Regular time 40 65 30 Period 1 2 3 Other Data Beginning Inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost Overtime 20 12 10 30 R 100 R 150 R 200 R 5 Subcontract 10 5 5
Jose Martinez of El Paso has developed a polishedstainless steel tortilla machine that makes it a "showpiece" fordisplay in Mexican restaurants. He needs to develop a 5-monthaggregate plan. His forecast of capacity and demand follows: Assume that backorders a re not permitted. Using the transportationmethod, what is the total cost of the optimal plan?
The Thor International Company operates four factories that ship products to five warehouses. The shipping costs, requirements, and capacities are shown in the tableau below. Use the transportation method to find the shipping schedule that minimizes shipping cost. Shipping Cost per Case to each Warehouse W2 Factory Сарacity W1 W3 W4 W5 Dummy $5 $5 $4 $7 $0 F1 60,000 $4 $5 $4 $6 $8 $0 F2 80,000 $6 $5 $7 $4 $5 $0 F3 80,000 $5 $9 $6 $7 $4 $0 F4 40,000 Demand 45,000 40,000 30,000 35,000 50,000 60,000 260,000 The minimum shipping cost is S | (Enter your response as a whole number.)
Jones Consulting is deciding where to place a new office. The candidate cities are Chicago and Houston. A partially completed Factor Rating worksheet follows:
Walker Accounting Software is marketed to small accounting firms throughout the U.S. and Canada. Owner George Walker has decided to outsource the company's help desk and is considering three providers: Manila Call Center (Philippines), Delhi Services (India), and Moscow Bell (Russia). The following table summarizes the data Walker has assembled. Which outsourcing firm has the best rating? (Higher weights imply higher importance and higher ratings imply more desirable providers.) In the following table, compute the weighted average score for each of the three providers (enter your responses rounded to one decimal place). Weight Manila Delhi Moscow Criterion (W) (A) (B) (C) Flexibility Trustworthiness 0.50 0.10 0.20 1 3 7 Price 4 7 Delivery 0.20 Total weighted score:
Walker Accounting Software is marketed to small accounting firms throughout the U.S. and Canada. Owner George Walker has decided to outsource the company's help desk and is considering three providers: Manila Call Center (Philippines), Delhi Services (India), and Moscow Bell (Russia). The following table summarizes the data Walker has assembled. Which outsourcing firm has the best rating? (Higher weights imply higher importance and higher ratings imply more desirable providers.) In the following table, compute the weighted average score for each of the three providers (enter your responses rounded to one decimal place). Weight Manila (W) Delhi Moscow Criterion (A) (B) (C) Flexibility 0.50 Trustworthiness 0.10 2 Price 0.20 3 5 4 Delivery 0.20 7 6. Total weighted score:
Walker Accounting Software is marketed to small accounting firms throughout the U.S, and Canada. Owner George Walker has decided to outsource the company's help desk and is considering three providers: Manila Call Center (Philippines), Delhi Services (India), and Moscow Bell (Russia). The following table summarizes the data Walker has assembled. Which outsourcing firm has the best rating? (Higher weights imply higher importance and higher ratings imply more desirable providers.) In the following table, compute the weighted average score for each of the three providers (enter your responses rounded to one decimal place). Weight Manila Delhi Moscow Criterion (W) (A) (B) (C) Flexibility 0.50 Trustworthiness 0.10 4 2. Price 0.20 Delivery 0.20 7 Total weighted score: Help me solve this Calculator Clear all Teck answer A5546
Sycamore Plastics (SP) is a manufacturer of polyethylene plastic pellets used es a row material by manufacturers of plastic goods around the United States SP currently operates four manufacturing centers in Philadelphia, PA; Atlanta, GA; St. Louis, MO; and Salt Lake City, UT. The plants have different capacities and production costs as indicated in the table below. МАXIMUM CAPАCITY PROD. COST (x 180, 800 LBS.) (PER 1,200 LBs.) $328.00 $278.00 $388.00 $253.00 PLANT Philadelphia Atlanta St. Louis Salt Lake City 7.9 9.1 12.1 10.4 SP currently has six contract customers located in New York City: Birmingham, AL; Terre Haute, IN; Dallas, TX; Spokane, WA; and San Diego, CA. Transportstion costs between the plants and verious customers, es well os contracted demand from esch customer, are shown in the table below. TRANSPORT COSTS PER 1,02e LBS. TERRE HAUTE FROM/TO NYC BIRMINGHAM DALLAS SPOKANE SAN DIEGO Philadelphia $ 46 $ 53 $ 57 $ 63 $ 74 $ 83 Atlanta 56 43 59 76 se St. Louis 58 61 51 55 61…