Operations ManagementQuestion 9Please show work and explain. Thank you. Bindley Corporation has a one-year contract to supply motors for all washing machines produced by Rinso Ltd. Rinso manufactures thewashers at four locations around the country: New York City, Fort Worth, San Diego, and Minneapolis. Plans call for the followingnumbers of washing machines to be produced at each location:New York CityFort Worth50,00070,000San Diego60,00080,000MinneapolisBindley has three plants that can produce the motors. The plants and production capacities areBoulderMaconGaryDue to varying production and transportation costs, the profit Bindley earns on each 1,000 units depends on where they wereproduced and where they were shipped. The following table gives the accounting department estimates of the dollar profit per unit.(Shipment will be made in lots of 1,000.)PRODUCED ATBoulderMaconGary100,000100,000150,000From/ToBoulderMaconGaryRequirementsNEW YORK CITY7208SHIPPED TOFORT WORTH111718Given profit maximization as a criterion, Bindley would like to determine how many motors should be produced at each plant and howmany motors should be shipped from each plant to each destination.a. Develop a transportation grid for this problem.SAN DIEGO81213New York City Fort WorthMINNEAPOLIS131016San DiegoMinneapolis Supply b. Find the optimal solution using Microsoft Excel. (Note: Due to existing transportation contracts, Macon must ship 50,000 motors toFort Worth and 0 motors to San Diego. These requirements are already shown in the Candidate Solution below.)Note: Leave the cells blank, whenever zero (0) is required.Candidate SolutionBoulderMaconGaryTotal suppliedProfitBoulderMaconGaryTotal profitNew York City0New York City Fort WorthFort Worth50,00050,000San DiegoSan Diego0MinneapolisMinneapolis$0Total Shipped0050,00050,000

Assume the following as the decision variables: Production at Rinso ltd. and Bindley is taken in…

Answered: Bindley Corporation has a one-year…

Practical Management Science

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ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

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Bindley Corporation has a one-year contract to supply motors for all washing machines produced by Rinso Ltd. Rinso manufactures the washers at four locations around the country: New York City, Fort Worth, San Diego, and Minneapolis. Plans call for the following numbers of washing machines to be produced at each location: New York City 50,000 Fort Worth 70,000 San Diego 60,000 Minneapolis 80,000 Bindley has three plants that can produce the motors. The plants and production capacities are Boulder 100,000 Macon 100,000 Gary 150,000 Due to varying production and transportation costs, the profit Bindley earns on each 1,000 units depends on where they were produced and where they were shipped. The following table gives the accounting department estimates of the dollar profit per unit. (Shipment will be made in lots of 1,000.) SHIPPED TO PRODUCED AT NEW YORK CITY FORT WORTH SAN DIEGO MINNEAPOLIS Boulder 7 11 8 13 Macon 20 17 12 10…
Bindley Corporation has a one-year contract to supply motors for all washing machines produced by Rinso Ltd. Rinso manufactures the washers at four locations around the country: New York City, Fort Worth, San Diego, and Minneapolis. Plans call for the following numbers of washing machines to be produced at each location: New York City 50,000 Fort Worth 70,000 San Diego 60,000 Minneapolis 80,000 Bindley has three plants that can produce the motors. The plants and production capacities are Boulder 100,000 Macon 100,000 Gary 150,000 Due to varying production and transportation costs, the profit Bindley earns on each 1,000 units depends on where they were produced and where they were shipped. The following table gives the accounting department estimates of the dollar profit per unit. (Shipment will be made in lots of 1,000.) PRODUCED AT SHIPPED TO NEW YORK CITY FORT WORTH SAN DIEGO MINNEAPOLIS Boulder 7 11 8 13 Macon 20 17 12 10 Gary 8 18 13 16 Given…
Bindley Corporation has a one-year contract to supply motors for all washing machines produced by Rinso Ltd. Rinso manufactures the washers at four locations around the country: New York City, Fort Worth, San Diego, and Minneapolis. Plans call for the following numbers of washing machines to be produced at each location: New York City 50,000 Fort Worth 70,000 San Diego 60,000 Minneapolis 80,000 Bindley has three plants that can produce the motors. The plants and production capacities are Boulder 100,000 Macon 100,000 Gary 150,000 Due to varying production and transportation costs, the profit Bindley earns on each 1,000 units depends on where they were produced and where they were shipped. The following table gives the accounting department estimates of the dollar profit per unit. (Shipment will be made in lots of 1,000.) SHIPPED TO PRODUCED AT NEW YORK CITY FORT WORTH SAN DIEGO MINNEAPOLIS Boulder 7 11 8 13 Macon 20 17 12 10…
The Martin-Beck Company operates a plant in St. Louis with an annual capacity of 30,000 units. Product is shipped to regional distribution centers located in Boston, Atlanta, and Houston. Because of an anticipated increase in demand, Martin-Beck plans to increase capacity by constructing a new plant in one or more of the following cities: Detroit, Toledo, Denver, or Kansas City. The estimated annual fixed cost and the annual capacity for the four proposed plants are as follows: Proposed Plant Annual Fixed Cost Annual Capacity Detroit $175,000 20,000 Toledo $300,000 30,000 Denver $375,000 40,000 Kansas City $500,000 10,000 The company’s long-range planning group developed forecasts of the anticipated annual demand at the distribution centers as follows: Distribution Center Annual Demand Boston 20,000 Atlanta 30,000 Houston 20,000 The shipping cost per unit from each plant to each distribution center is as follows: Distribution Centers Plant…
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DryIce, Inc. is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand for the year 2010 to be 180,000 units in the South; 120,000 units in the Midwest; 110,000 units in the East; and 100,000 units in the West. Managers at DryIce are designing the manufacturing network and have selected four potential sites – New York, Atlanta, Chicago, and San Diego. Plants could have a capacity of either 200,000 or 400,000 units. The annual fixed costs at the four locations are shown in the table below, along with the cost of producing and shipping an air conditioner to each of the four markets. Where should DryIce build its factories and how large should they be? New York Atlanta Chicago San Diego Annual fixed cost of 200,00 plant $6 miilion 5.5 million 5.6 million 6.1 million Annual fixed cost of 400,000 $10 million $9.2 million 9.3 million 10.2 million EAST $211 $232 $238 $299 SOUTH $232 $212…
A chain of home health care firms in Louisiana needs to locate a central office from which to conduct internal audits and other periodic reviews of its facilities. These facilities are scattered throughout the state, as detailed in the following table. Each site, except for Houma, will be visited three times each year by a team of workers, who will drive from the central office to the site. Houma will be visited five times a year. Which coordinates represent a good central location for this office? What other factorsmight influence the office location decision? Where would youplace this office? Explain.
A chain of home health care firms in Louisiana needsto locate a central office from which to conduct internal audits and other periodic reviews of its facilities. These facilities are scat-tered throughout the state, as detailed in the following table. Each site, except for Houma, will be visited three times each year by ateam of workers, who will drive from the central office to the site. Houma will be visited five times a year. Which coordinates rep-resent a good central location for this office? What other factors might influence the office location decision? Where would youplace this office? Explain. PXCITY MAP COORDINATESx yCovington 9.2 3.5Donaldsonville 7.3 2.5Houma 7.8 1.4Monroe 5.0 8.4Natchitoches 2.8 6.5New Iberia 5.5 2.4Opelousas 5.0 3.6Ruston 3.8 8.5
A logistics company plans to provide coal logistics transportation services to HY coal sales enterprise. HY coal sales enterprise has coal storage and sales points in B and D, with available coal quantities of 1600t and 8000t, respectively; A and C represents the locations of two coal users, with a demand of 8000t and 1600t respectively. The distribution of relevant locations and travel distances are shown in Figure 1. Based on the above conditions, try to calculate and explain from the perspective of transportation capacity consumption: How should logistics company HY plan transportation routes in order to make them more reasonable? (a transportation route planning scheme needs to be illustrated) . Note:The solution should not be hand written.
PharmaCo wants to determine how to deploy sales representatives across its Western U.S. region to support a new drug for obesity. Sales representatives will be located in a "home city", which they serve, in addition to cities with feasible commuting distance, with the objective that all cities must be served by at least one sales representative. The feasible connections between each city in the region are listed below (1 indicates a feasible connection, potential home cities are shown in columns, and cities served in rows): Potential Rep Home City Served? Albuquerque El Paso Denver Phoenix San Diego Los Angeles San Francisco Portland Seattle Las Vegas Salt Lake City Albuquerque 1 1 1 1 0 0 0 0 0 0 0 El Paso 1 1 0 1 0 0 0 0 0 0 0 Denver 1 0 1 1 0 0 0 0 0 0 1 Phoenix 1 1 1 1 1 1 0 0 0 1 1 San Diego 0 0 0 1 1 1 1 0 0 1 0…
PharmaCo wants to determine how to deploy sales representatives across its Western U.S. region to support a new drug for obesity. Sales representatives will be located in a "home city", which they serve, in addition to cities with feasible commuting distance, with the objective that all cities must be served by at least one sales representative. The feasible connections between each city in the region are listed below (1 indicates a feasible connection, potential home cities are shown in columns, and cities served in rows): Potential Rep Home City Served? Albuquerque El Paso Denver Phoenix San Diego Los Angeles San Francisco Portland Seattle Las Vegas Salt Lake City Albuquerque 1 1 1 1 0 0 0 0 0 0 0 El Paso 1 1 0 1 0 0 0 0 0 0 0 Denver 1 0 1 1 0 0 0 0 0 0 1 Phoenix 1 1 1 1 1 1 0 0 0 1 1 San Diego 0 0 0 1 1 1 1 0 0 1 0…

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