1. A company would like to develop an aggregate plan and evaluate its costusing the transportation method.Solve using Excel of the QM software. Note: do not do this manuallyRelated data are shown in the tables belowDemand forecastPeriod Demand (Unit)180290340Supply Capacity available (units)Regular time406530Period123Other DataBeginning InventoryRegular-time cost per unitOvertime cost per unitSubcontract cost per unitCarrying costOvertime20121030R 100R 150R 200R 5Subcontract1055

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Answered: 1. A company would like to develop an…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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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. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
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?
SOLVE USING EXCEL Metal Fabricators, Inc. manufactures gas grill tanks, Model # 1420, for four original equipment manufacturers (OEMs). Demand is forecast to be as follows: Quarter 1 = 2,800 tanks, Quarter 2 = 3,400, Quarter 3 = 3,600, and Quarter 4 = 2,900. Due to a hedging program for sheet steel and increases in international tariffs, production cost per quarter vary as follows: Quarter 1 = $23.50 per tank, Quarter 2 = $28.00, Quarter 3 = $25.90, and Quarter 4 = $29.00. Due to production contracts with the OEMs, no shortages are allowed. Beginning inventory for Quarter 1 is 300 tanks. At the end of each quarter, inventory holding costs are $4.25 per tank. a. Formulate the problem as a linear programming model (see Supplement D). b. Solve the model in (a) using Excel Solver.
1. Evaluate the current China/Taiwan logistics costs. Assume a current total volume of 190,000CBM and that 89 percent is shipped direct from the supplier plants in containers. Use the datafrom the case and assume that the supplier-loaded containers are 85 percent full. Assume thatconsolidation centers are run at each of the four port locations. The consolidation centers useonly 40-foot containers and fill them to 96 percent capacity. Assume that it costs $480 to ship a20-foot container and $600 to ship a 40-foot container. What is the total cost to get thecontainers to the United States? Do not include U.S. port costs in this part of the analysis.2. Evaluate an alternative that involves consolidating all 20-foot container volumes and using onlya single consolidation center in Shanghai/Ningbo. Assume that all the existing 20-foot containerUU- SCM-1200 Introduction to Supply Chain Management Page 2volumes and the existing consolidation center volumes are sent to this single…
Problem 4-11 (Algorithmic) Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have limited capacity, and no one supplier can meet all the company’s needs. In addition, the suppliers charge different prices for the components. Component price data (in price per unit) are as follows: Supplier Component 1 2 3 1 $11 $12 $13 2 $9 $10 $9 Each supplier has a limited capacity in terms of the total number of components it can supply. However, as long as Edwards provides sufficient advance orders, each supplier can devote its capacity to component 1, component 2, or any combination of the two components, if the total number of units ordered is within its capacity. Supplier capacities are as follows: Supplier 1 2 3 Capacity 500 900 700 If the Edwards production plan for the next period includes 900 units of component 1 and 700 units of component 2, what purchases do you recommend? That is, how many units of each…
fter spending $300,000 for research and development, chemists at Diversified Citrus Industries have developed a new breakfast drink. The drink, called Zap, will provide the consumer with twice the amount of vitamin C currently available in breakfast drinks. Zap will be packaged in an 8-ounce can and will be introduced to the breakfast drink market, which is estimated to be equivalent to 21 million 8-ounce cans nationally. One major management concern is the lack of funds available for marketing. Accordingly, management has decided to use newspapers (rather than television) to promote Zap in the introductory year and distribute Zap in major metropolitan areas that account for 65 percent of U.S. breakfast drink volume. Newspaper advertising will carry a coupon that will entitle the consumer to receive $0.20 off the price of the first can purchased. The retailer will receive the regular margin and be reimbursed for redeemed coupons by Diversified Citrus Industries. Past experience…
Consider the following transportation decision-making information: Plant Capacity Store Demand A 400 X 200 B 500 Y 250 C 100 Z 300 Total 1000 Total 750 Cost to ship from plant to store (per unit of demand) Plant Store X Y Z A $2 $2 $3.5 B $4 $5 $4.5 C $3 $3 $3 A. Develop the following shipping assignment table that uses the Solver function to find the optimal shipping patterns between the plants and the stores. Plant Store X Y Z A B C B. What is the minimal shipping cost?
Like FedEx, UPS is a major player in global logistics. After reading the information presented in this module and other sources, write a one-page paper that describes three IT tools that UPS uses in its global logistics. What are two differences between global logistics and domestic logistics? The availability and speed of Internet connections play a major role in the success of a GIS. After reading the information presented in this module and other sources, write a one-page paper that lists the 10 countries with the fastest Internet connections. Is the United States among the top 10? Offshore outsourcing increases with the use of GISs. After reading the information presented in this module and other sources, write a one-page paper that describes four factors a company should consider when looking for a country to provide it with IT services. What are two reasons that have made India the top IT outsourcing country in the world? Information-sharing technologies are among the major…
For each alternative new plant location, determine the shipping pattern that will minimize total transportation costs. Where should the new plant be located? Plant Capacity (Cases per Week) Warehouse Demand (Cases per Week) Chicago 10,000 Miami 7,000 Houston 7,500 Denver 9,000 New plant 8,000 Lincoln 4,500 Total 25,500 Jackson 5,000 Total 25,500 Shipping Cost to Warehouse (per Case) Plant Miami Denver Lincoln Jackson Chicago $7.00 $2.00 $4.00 $5.00 Houston $3.00 $1.00 $5.00 $2.00 Buffalo (alternative 1) $6.00 $9.00 $7.00 $4.00 Atlanta (alternative 2) $2.00 $10.00 $8.00 $3.00
ABC pharmaceutical Company has four factories that ship supplies to four warehouses. The company’s management hires you as a consultant to determine a minimum-cost shipping plan for its monthly output to the warehouses. Factory capacities, warehouse demands, and shipping cost per box are shown below. Factory Supply or capacity (boxes) Warehouse Demand (boxes) Richmond 60 Chicago 100 Santa Fe 80 Jacksonville 90 Austin 120 Huntville 50 Vacaville 90 Fresno 70 Shipping Costs per box (In Dollars) From To Chicago To Jacksonville To Huntsville To Fresno Richmond 35 35 46 60 Santa Fe 65 40 35 25 Austin 50 50 80 90 Vacaville 40 40 66 75 Draw a diagram by showing factories, warehouses, and connecting arcs. Define variables, write the objective function and constraints.
2. Unbalanced. Provide the transportation model for the calculation of cost given the following data: Use the Stepping Stone Method to solve the following. Use degeneracy method or dummy method if necessary.
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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