Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 6.5, Problem 13P
Summary Introduction

Interpretation: Find the optimal flow of cars through the transshipment points that minimizes the total shipping costs.

Concept Introduction: Optimal flow of costs defines that path of the cost move through a firm. The main process of flow of costs begins with raw materials are valued for manufacturing. The cost of flow is the moves to the work in process stage of inventory when the goods are stored till they are sold. The machinery cost and labor in production are adding to its overhead costs.

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DM Office Products (DMOP) is a wholesale supplier of office products with one facility in Pennsylvania. It has decided to build a new distribution warehouse in the state of New York to help serve the growing demand in that market. It has four major customers located in Buffalo, Syracuse, Albany, and New York City. Though New York City is the largest market, it also has the greatest competition, and DMOP is not a major player there. When DMOP ships an order to a customer, it uses its own small fleet of two trucks to deliver, so the cost of delivery is essentially the same for a full or partially full truck. The expected number of annual shipments to each city and their coordinates on an x, y grid is shown in the following table.  CITY x-COORDINATES y-COORDINATES NUMBER OF SHIPMENTS Buffalo 340 865 85 Syracuse 1,435 915 89 Albany 2,315 645 129 New York City 2,290 45 69
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DM Office Products (DMOP) Is a wholesale supplier of office products with one facility in Pennsylvania. They have decided to build a new distribution warehouse in the state of New York to help serve the growing demand in that market. They have four major customers located in Buffalo, Syracuse, Albany, and New York City. Though New York City is the largest market, It also has the greatest competition, and DMOP is not a major player there. When DMOP ships an order to a customer, they use their own small fleet of two trucks to dellver, so the cost of delivery is essentlally the same for a full or partially full truck. The expected number of annual shipments to each city and their coordinates on an x, y grid is shown in the following table. CITY x-COORDINATES y-COORDINATES NUMBER OF SHIPMENTS Buffalo 325 850 78 Syracuse Albany New York City 1,420 2,300 2,275 900 82 630 122 25 62 Use the centrold method to recommend a location for the new warehouse for DMOP. (Round your answers to 1 decimal…
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