Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Textbook Question
Chapter B, Problem 23P
A fertilizer manufacturer has to fulfill supply contracts to its two main customers (650 tons to Customer A and 800 tons to Customer B). It can meet this demand by shipping existing inventory from any of its three warehouses. Warehouse 1 (W1) has 400 tons of inventory on hand, Warehouse 2 (W2) has 500 tons, and Warehouse 3 (W3) has 600 tons. The company would like to arrange the shipping for the lowest cost possible, where the per-ton transit costs are as follows:
- a. Explain what each of the six decision variables (V) is: (Hint: Look at the Solver report below.)
V A1: _________
V A2: _________
V A3: _________
V B1: _________
V B2: _________
V B3: _________
- b. Write out the objective function in terms of the variables (V A1, V A2, etc,) and the objective coefficients.
- c. Aside from nonnegativity of the variables, what are the five constraints? Write a short description for each constraint, and write out the formula (and circle the type of equality/inequality).
After you formulate and enter the linear program for Problem B.27 in Excel, the Solver gives you the following sensitivity report:
Adjustable Cells
Constraints
- d. d) How many of the constraints are binding?
- e. e) What is the range of optimality on variable V A3?
- f. f) If we could ship 10 tons less to Customer A, how much money might we be able to save? If we could choose to short either Customer A or Customer B by 10 tons, which would we prefer to short? Why?
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CASE:
The manager of a community pharmacy is reordering his stock of generic atenolol when he notes in the catalogue that a new manufacturer is also now producing and packaging atenolol at what appear to be competitive prices. At present he orders, on average, three 250-count bottles per month at Php 120 per bottle from Company A. However, Company B is offering one bottle of 1,000-count atenolol for Php 175.
Detail the type of analysis the pharmacist might conduct to determine which option would be least costly. Assuming the pharmacy dispenses 10,000 atenolol pills over the course of one year, from which company should the pharmacist order if financial considerations are the only consideration?
What chronic ailment is atenolol used for?
What is the aim of this case?
Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of
30
units and is valued at
$60
per unit. Inbound shipments from vendor 1 will average
330
units with an average lead time (including ordering delays and transit time) of
4
weeks. Inbound shipments from vendor 2 will average
450
units with an average lead time of
3
weeks.
Ruby-Star operates 52 weeks per year; it carries a
4-week
supply of inventory as safety stock and no anticipation inventory.
A. the average aggregate inventory value of the product if ruby star used vendor 1 exclusively is $_____ (enter your response as a whole number)
B. the average aggregate inventory value of the product if ruby sta used vendor 2 exclusively is $______ (enter your response as a whole number)
C. how would your analysis change if average weekly demand increased to 140 units per week?
the average aggregate inventory value of the product if ruby star used vendor 1…
Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of 50 units and is valued at $75 per unit. Inbound shipments from vendor 1 will average 350 units with an average lead time (including ordering delays and transit time) of 2 weeks. Inbound shipments from vendor 2 will average 500 units with an average lead time of 1 week. Ruby-Star operates 52 weeks per year; it carries a 2-week supply of inventory as safety stock and no anticipation inventory.a. What would be the average aggregate inventory value of this product if Ruby-Star used vendor 1 exclusively?b. What would be the average aggregate inventory value of this product if Ruby-Star used vendor 2 exclusively?c. How would your analysis change if average weekly demand increased to 100 units per week?
Chapter B Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Ch. B - Prob. 1DQCh. B - Prob. 2DQCh. B - Prob. 3DQCh. B - Prob. 4DQCh. B - Prob. 5DQCh. B - Prob. 6DQCh. B - Prob. 7DQCh. B - Prob. 8DQCh. B - Prob. 9DQCh. B - Prob. 10DQ
Ch. B - Prob. 11DQCh. B - Where a constraint crosses the vertical or...Ch. B - Prob. 13DQCh. B - The LP relationships that follow were formulated...Ch. B - Prob. 2PCh. B - Prob. 3PCh. B - B.4. Consider the following linear programming...Ch. B - Prob. 5PCh. B - Prob. 6PCh. B - Green Vehicle Inc. manufactures electric cars and...Ch. B - Prob. 8PCh. B - Prob. 9PCh. B - Prob. 10PCh. B - Prob. 11PCh. B - Prob. 12PCh. B - Prob. 13PCh. B - Prob. 14PCh. B - Prob. 22PCh. B - A fertilizer manufacturer has to fulfill supply...Ch. B - Prob. 25PCh. B - Prob. 26PCh. B - Prob. 27PCh. B - Prob. 28PCh. B - Prob. 29PCh. B - Prob. 30PCh. B - How many corner points are there in the feasible...Ch. B - Prob. 34PCh. B - Prob. 35PCh. B - Prob. 36PCh. B - Prob. 37PCh. B - Prob. 38PCh. B - Bowman Builders manufactures steel storage sheds...Ch. B - Prob. 40PCh. B - Prob. 41PCh. B - Quain Lawn and Garden, Inc Bill and Jeanne Quain...Ch. B - Quain Lawn and Garden, Inc Bill and Jeanne Quain...Ch. B - Prob. 1.1VCCh. B - Prob. 1.2VCCh. B - Prob. 1.3VCCh. B - Prob. 1.4VC
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