A firm is attempting to minimize its shipping costs. The firm has 3 factories and must supply the needs of its 3 customers withoutshortages. Since the firm has no storage facilities, each factory must make daily shipments to its customers. The table below shows thecapacity of each factory, the amount required by each customer, and the cost of shipping from each factory to each customer.Factory/CapacityA/160 unitsB/170 unitsC/190 unitsFactoryABCCustomer 185Total costRequirement-260 unitsShipping Costs ($/unit)Customer 2Shipping Costs ($/unit)Customer 1 Customer 2 Customer 3686Requirement-87 unitsWhat is the total cost of meeting customer requirements each day?Complete the table below to show the quantity shipped from each factory to each customer. (Leave no cells blank - be certain toenter "0" wherever required.)Customer 3128Requirement-173 units

The transportation model is used to calculate the minimum cost of the route by selecting different…

Answered: What is the total cost of meeting…

Business

Operations Management

What is the total cost of meeting customer requirements each day? Total cost

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 5.1SC: 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. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
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?
The Awesome Skis Company has manufacturing plants in Portland, Oregon and Toronto, Ontario. You have been given the job of coordinating distribution of the latest model, the Superslide, to outlets in Lake Tahoe and Whistler. The Portland plant, when operating at full capacity, can manufacture 620 pairs Superslide skis per week, while the Toronto plant, beset by labor disputes, can produce only 410 pair of skis per week. The outlet in Lake Tahoe orders at least 500 pairs Superslide skis per week, while Whistler orders at least 530 pairs of skis per week. Transportation costs are as follows: Portland to Lake Tahoe: $10 per pair of skis; Portland to Whistler: $5 per pair of skis. Toronto to Lake Tahoe: $20per pair of skis; Toronto to Whistler: $10 per pair of skis. (a) You want to ship as many skis as you can filling all the orders and yet, you want to minimize your costs. If so, how many skis should be shipped from each manufacturing plant to each…
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…
the members of an instamural softball team decided to get cutom t-shirts made. there arer two screening shoops in town that they can choose from wave graphic charges a setup fee of $22 and then each shirt is $7. The shirt shack doesnt charge a setup fee but each shirt is $9. if for some bizarre reason the team decided to only order three shirts question 1. the goal to find the # of shirts for which the two shops would charge the same. a. wright a equation that describes the cost c of buying x shirts from the shirt shack b. wright an equation thsat describes the cost C of buying x shirts from wave graphics c. now you have a sytem of equations with each shop by making a table of values number of x shirts are 3,6,9,12,15 whats the cost for each one shack and cost of wave graphic for each one?
Transworld Deliveries is expanding its contract home delivery service into the Northeastern United States. The company anticipates that to accommodate this expansion it will need between 25 and 40 staffed delivery vehicles. Transworld is currently moving 25 of its own vehicles, with drivers, into the Northeast. The daily cost of operating its own fleet is $820 per vehicle, while the daily cost of leasing a vehicle and driver is expected to be $1,200 per vehicle. The expected demand requirements follow: Requirements (in vehicles) 25 30 35 40 Probability 0.25 0.25 0.25 0.25 Using an expected value approach, should Transworld purchase additional vehicles and hire additional drivers? If so, how many would you recommend?
500 Production Denver 800 Production TRANSSHIPMENT PROBLEM Atlanta 3 2 4.5 3.5 3.5 Kansas City 4 Louisvill 2 5.5 3 6 4.5 Find the minimum cost of transporting the required goods through Kansas City and Louisville 4 6 5.5 Fargo Detroit Miami Dallas New Orleans 50 Demand 100 Demand 150 Demand 250 Demand 150 Demand
DJA Trucking Co. owns several truck used in hauling crushed stones from three different plants to three road projects in Pampanga. The contractor in charge of the project gives the company the ff. Projec A B C F/T X Y Z Requirement per week 150 175 140 A B P100 P200 150 175 200 500 C P75 225 125 Plants X Y Z Available per week 145 160 160 Compute for the optimal hauling schedule and the total transportation costs. (Use stepping stone and Least Cost Method (minimum entry method))
Acadia Logistics anticipates that it will need more distribution center space to accommodate what it believes will be a significant increase in demand for its final-mile services. Acadia could either lease public warehouse space to cover all levels of demand or construct its own distribution center to meet a specified level of demand, and then use public warehousing to cover the rest. The yearly cost of building and operating its own facility, including the amortized cost of construction, is $15.00 per square foot. The yearly cost of leasing public warehouse space is $24.50 per square foot. E Click the icon to view the expected demand requirements. a. The expected value of leasing public warehouse space as required by demand is $ 10290000 . (Enter your response as a whole number.) b. The expected value of building a 230,000-square-foot distribution center and leasing public warehouse space as required if demand exceeds the need for 230,000 square feet of space is $ (Enter your response…
Acadia Logistics anticipates that it will need more distribution center space to accommodate what it believes will be a significant increase in demand for its final-mile services. Acadia could either lease public warehouse space to cover all levels of demand or construct its own distribution center to meet a specified level of demand, and then use public warehousing to cover the rest. The yearly cost of building and operating its own facility, including the amortized cost of construction, is $15.00 per square foot. The yearly cost of leasing public warehouse space is $24.50 per square foot. E Click the icon to view the expected demand requirements. a. The expected value of leasing public warehouse space as required by demand is S (Enter your response as a whole number.) More Info Requirements (in sq. ft) Probability 230,000 430,000 630,000 830,000 0.35 0.4 0.2 0.05 Print Done
Problem 21-9 (Algo) Semans is a manufacturer that produces bracket assemblies. Demand for bracket assemblies (X) is 131 units. The following is the BOM in indented form: ITEM X A B C DESCRIPTION Bracket assembly wall board Hanger subassembly D Hanger casting E Ceramic knob Rivet head screw F Metal tong G Plastic cap Item Inventory X 23 A 18 B5 Below is a table indicating current inventory levels: 55 USAGE 1 C 25 4 2 2 1 5 2 D 200 170 1,100 G 90
Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Allocate production capacity to meet demand at a minimum cost using the transportation method. What is the cost? Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. supply available period initial inventory regular-time cost per unit Overtime cost per unit subcointract cost per unit carrying cost per unit per month 1 2 3 Regular Tim overtime subcontrac demand forecast 30 35 30 15 $ LA LA LA L $ $ $ 90.00 110.00 120.00 3.00 15 10 10 5 5 5 50 50 40