The distribution system for the Herman Company consists of three plants, two warehouses, and four customers. Plant capacities and shipping costs per unit (in $) from each plant to each warehouse are as follows: Plant 1 2 3 1 Warehouse 11⁄2 Demand 485 Warehouse 1 6 3 300 2756 5 Customer demand and shipping costs per unit (in $) from each warehouse to each customer are as follows: Customer Capacity 450 600 380 2 4 6 300 3 8 7 300 a. Develop a network representation of this problem. Formulate a linear programming model of the problem. b. Solve the linear program to determine the optimal shipping plan. 4 4 7 400
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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. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production 158,000 Fixed manufacturing overhead cost $ 653,000 Variable manufacturing overhead cost per machine-hour $ 4.90 Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job 400 was started and completed. The following information was available with respect to this job: Direct materials $ 380 Direct labor cost $ 220 Machine-hours used 36 Compute the total manufacturing cost assigned to Job 400. 3. If Job 400 includes 50 units, what is the unit product cost for this job? 4. If Moody uses a markup percentage of 110% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?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) January 4,150 February 4,250 March 3,950 April 4,350 May 4,950 June 4,650 July 5,250 August 4,850 September 5,350 October 5,650 November 6,250 December 5,950 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 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…
- Data collected on the yearly demand for 50- pound bags of fertilizer at Wallace Garden Supply are shown in the following table. Estimate demand for vear 12 with a weighted moving average in which sales in the most recent year are given a weight of 2 and sales in the other two years are each given a weight of 1. Year Demand (Bags) 4 6. 3 4. 4. 10 6 8. 8. 8. 12 10 14 11 15 O A. 13.67 O B. 14.00 OC. 14.87 O D. 11.79 Click to select your answer. Us MacBook Air 888 * ES F2 F4 F6 F7 4) F9 F10 %23 2$ & * 4 6. 7 8 9. Q W R T Y F C V В alt command command option %#3Timely Transport provides local delivery service for a number of downtown and suburban businesses. Delivery charges are based on distance and weight involved for each delivery: 10 cents per pound and 15 cents per mile. Also, there is a $10 handling fee per parcel. a. Develop an expression that summarizes delivery charges.13.2 A company manufactures component parts for machine tools in North America and ships them to Southeast Asia for assembly and sale in the local market. The components are shipped by sea, transit time averages 6 weeks, and the shipping costs $2700 per shipment. The company is considering moving the parts by air at an estimated cost of $7500; the shipment taking 2 days to get there. If inventory in transit for the shipment costs $125 per day, should they ship by air?
- 2. Moonlight Transport company ships truckloads of grain from three warehouses to four distribution centers. The supply (in truck loads), the demand (in truckloads), and the unit transportation costs per truckload on the different routes are summarized in table below. Distribution centres Supply (in truck loads) Warehouses Distribution Distribution Distribution Distribution centre 1 centre 2 centre 3 centre 4 Warehouse 1 $3 $1 $7 $4 300 Warehouse 2 $2 $6 $5 9 400 Warehouse 3 S8 $3 $3 $2 500 Demand (in 250 350 400 200 1200 truck loads)Which of the following would be most appropriate basis for apportioning machinery insurance costs to cost centers within a factory? Select one: a. The flor area occupied by the machinery in each cost Centre b. Number of machine in each cost Centre c. The operating hours of each machinery in each cost center d. The value of machinery in each cost centerThree doctors have banded together to form a jointpractice: the Port Charles Trio. The overhead for the practiceis $40,000 per year. Each doctor brings in annual revenuesand incurs annual variable costs as follows: doctor 1—$155,000 in revenue, $40,000 in variable cost; doctor 2—$160,000 in revenue, $35,000 in variable cost; and doctor3—$140,000 in revenue, $38,000 in variable cost.The Port Charles Trio wants to use game theory todetermine how much each doctor should be paid. Determinethe relevant characteristic function and show that the coreof the game consists of an infinite number of points. Alsodetermine the Shapley value of the game. Does the Shapleyvalue give a reasonable division of the practice’s profits?
- . The Newcoat Painting Company has for some time been experiencing high demand for its automobile repainting service. Because it has had to turn away business, management is concerned that the limited space available to store cars awaiting painting has cost them in lost revenue. A small vacant lot next to the painting facility has recently been made available for rental on a long-term basis at a cost of $10 per day. Management believes that each lost customer costs $20 in profit. Current demand is estimated to be 21 cars per day with exponential interarrival times (including those turned away), and the facility can service at an exponential rate of 24 cars per day. Cars are processed on a FCFS basis. Waiting space is now limited to 9 cars but can be increased to 20 cars with the lease of the vacant lot.Newcoat wants to determine whether the vacant lot should be leased. Management also wants to know the expected daily lost profit due to turning away customers if the lot is leased. Only…Determine how many products to ship from each factory to each warehouse, or from each factory to each warehouse and direct to each end customer, to minimize shipping cost while meeting warehouse demands and not exceeding factory supplies Explain the above scenario using the problem given below: Warehouse Capucity Factory w, W, W. (Supply) 21 16 25 13 F. F, 17 18 14 23 13 32 27 18 41 19 Requirement 6 (Demand) 10 12 15 43 Use least cost Method to solve the problem. Using Transportation methodSanchez Trucking has been experiencing delays at its ware-house operations. Management hired a consultant to findout why service deliveries to local businesses have takenlonger than they should. The consultant narrowed down theproblem to the number of work crews loading and unload-ing trucks. Each crew consists of six employees who workas a team on a variety of tasks; each employee works a full40 hours a week. However, costs are also a concern. Theconsultant advised management that they could supplementwork crews with short-term employees, at a higher cost, tocover unexpected needs on a weekly basis. Each work crewpermanently hired by Sanchez costs $3,200 per week inwages and benefits, while a crew of short-term employeescosts $5,000 per week. Complicating the decision is the factthat the weekly hourly requirements for work crews is uncer-tain because of the volatility in the number of deliveries to bemade. Deliberating with management, the consultant arrivedat the following data: