Qm Chapter 6 Test Bank

Abdelwahab, W. M., M. Sargious. 1990. Freight rate structure and optimal shipment size in freight transportation. Logist. Transportation Rev. 6(3) 271-292.

This is where the quantity demanded and the quantity supplied are equal. The corresponding price is the equilibrium price and the quantity is the equilibrium quantity.

Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales = 10,000 units, most likely case in which sales = 20,000 units, and best case in which sales = 30,000 units.

(3 marks) c) Determine the optimal number of bus and train travelers. (2 marks) d) Say a train strike significantly reduced the number of trains available. By how much would the train capacity constraint have to fall for the optimal solution to be altered? (2 marks)

The next task is to provide the optimum number of shoelaces to order, using appropriate cost balancing. The economic order quantity (EOQ) is the order amount that allows for an optimum level of materials at the lowest cost possible. There is a demand ofr 300,000 shoelaces per year. The setup cost is $125 per order. There is a $.10 holding cost per unit. The optimal order quantity recommended is 27,386.13 shoelaces per order, with a maximum inventory of 27,386.13. This means that we will order just the amount of shoelaces needed to fulfill current production orders. The average inventory is 13,693.06 shoelaces. There will be approximately 10.95 orders per year. The annual setup cost is $1,369.31, and the annual holding cost is $1,369.31. This makes the total cost per year $2, 738.61. This decision tool allows us to calculate the correct amount needed per order to ensure that we are lowering operating and holding costs, while keeping production properly stocked.

Challenge two: Inventory/Shipping: Shipping and receiving are sharing facilities due to one railroad spur being available. The company is having problems producing enough products for the customers. This lack of production cause large quantities of finished materials to be stored

* Loads were picked up from location A and delivered to one of 5 warehouses, placed on another truck with optimized route for location B (software driven route optimization)

A. Assuming the number of hours Anna Sheen will spend developing the profile section will = 4; Ralph Armentrout’s optimal stocking quantity is 516, as portrayed in the table below:

The shipping cost and/or unavailability of transportation between the plants and some locomotive locations will eliminate some of the routes due to cost inefficiency. These routes are the unacceptable routes and will not be considered for distribution from the specified plant. By removing unacceptable routes, Solutions Plus is able to build a linear programming solution to determine which plant/locomotive location combinations are optimal. Based on the shipping cost provided, the routes that are eliminated are as follows:

15) In an unbalanced transportation problem where total supply exceeds total demand, the supply constraints will typically have "≥" inequalities.

A) if the right-hand side value of the constraint increases by 1 unit, the objective function value will increase by 5 units

1) The system achieves the balance between two costs ordering cost and the carrying cost.

a). Ash decides to allocate $4 million to fund the exhibit. Given the pieces available and the specific requirements from Ash and Celeste, formulate and solve a BIP model to maximize the number of pieces displayed in the exhibit without exceeding the budget. How many pieces are displayed? Which pieces are displayed?

Problem #2.” (To make your life easier, optimal stocking quantity, Q, is computed by the

Transportation is one of the largest industries in the world. It is the most costly and time consuming of the supply chain. Transportation refers to the movement of products and raw materials from one destination to another. This process begins from the supply chain to the shipping of the finished product to the consumer. For we know that products are rarely produced in the same location. We as people depend on transportation because it moves goods and people from one place to another.