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 Fort Worth San Diego Minneapolis 75,000 59,000 77,000 60,000 Bindley has three plants that can produce the motors. The plants and production capacities are Boulder Macon 51,000 70,000 Gary 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.) Macon Gary PRODUCED AT NEW YORK CITY Boulder 20 25 SHIPPED TO FORT WORTH 28 10 SAN DIEGO 22 20 MINNEAPOLIS 13 30 Given profit maximization as a criterinn Rindley would like to determine how many motore should ha
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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 Spencer Shoe Company manufactures a line of inexpensive shoes in one plant in Pontiac and distributes to five main distribution centers (Milwaukee, Dayton, Cincinnati, Buffalo, and Atlanta) from which the shoes are shipped to retail shoe stores. Distribution costs include freight, handling, and warehousing costs. To meet increased demand, the company has decided to build at least one new plant with a capacity of 40,000 pairs per week. Surveys have narrowed the choice to three locations, Cincinnati, Dayton, and Atlanta. As expected, production costs would be low in the Atlanta plant, but distribution costs are relatively high compared to the other two locations. Other data are as follows. Assume that Spencer Shoe Company will keep operating at Pontiac and build a plant at one of the three new alternatives. Which alternative will lead to the lowest total cost, including production, distribution, and fixed costs, and what is the minimum weekly cost? Distribution costs per pair…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 8.5A 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 dental care facility location analysis has been narrowed down to two locations in Alexandria; Stanley and Camp-Cesar. The main factors in the decision will be the supply of dental clinic raw materials, which has a weight of 0.50, transportation cost, which has a weight of 0.40, and labor cost, which has a weight of 0.10. The scores for raw materials, transportation, and labor are for Stanley 60, 80, and 70, respectively; for Camp-Cesar 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the facility OM should: A. be indifferent between these locationsB. choose StanleyC. choose Camp-CesarD. reject both locationsE. build a dental care facility in both districts.Why? – Comment to justify your (the OM) decision.Wiebe Trucking, Inc., is planning a new warehouse to serve the western United States. Denver, Santa Fe, and Salt Lake City are under consideration. For each location, annual fixed costs (rent, equipment, and insurance) and average variable costs per shipment (labor, transportation, and utilities) are listed in the following table. Sales projections range from 550,000 to 600,000 shipments per year. Location Annual fixed cost Variable Costs per Shipment Denver $5,000,000 $4.65 Santa Fe $4,200,000 $6.25 Salt Lake City $3,500,000 $7.25 a. Plot the total cost curves for all the locations on a single graph. b. Which city provides the lowest overall costs? Thank you!!!Hardgrave Machine Company produces computer components at its factories in Cincinnati, Kansas City, and Pittsburgh. These factories have not been able to keep up with demand for orders at Hardgrave’s four warehouses in Detroit, Houston, New York, and Los Angeles. As a result, the firm has decided to build a new factory to expand its productive capacity. The two sites being considered are Seattle, Washington, and Birmingham, Alabama. Both cities are attractive in terms of labour supply, municipal services, and ease of factory financing. Table 1 presents the production costs and monthly supplies at each of the three existing factories, monthly demands at each of the four warehouses, and estimated production costs at the two proposed factories. Transportation costs from each factory to each warehouse are summarized in Table 2. In addition to this information, Hardgrave estimates that the monthly fixed cost of operating the proposed facility in Seattle would be $400,000. The…
- Sap Manufacturing, a manufacturing company that manufactures football jerseys and located in Port Antonio, Jamaica, is preparing to build a new plant. J’s is considering three potential locations that are suitable for the construction of the plant. The fixed and variable costs for the three alternative locations are presented in the table below. Identify the range over which each alternative (A, B and C) is best.Compu Limited is a company that manufactures computer monitors, keyboards, computer boxes and modems (both internal and external). These four products are sold all over the country and in a few overseas markets. The head office is situated in Sandton, South Africa, with three plants in other parts of the country. Four years ago, a fourth plant was opened in Zimbabwe to take advantage of the inexpensive labour available. 90% of the items manufactured in Zimbabwe are shipped back to South Africa and the remaining 10% are sold in other African countries. Compu Limited advertises its products in computer magazines, on the internet and over the television. It shares are traded on the Johannesburg Stock Exchange (JSE). Three major organisations account for almost 50% of Compu’s sales and the remaining sales are made to other smaller computer manufacturers. Lately one of these customers is constantly complaining about the lack of new technology in Compu’s products. A total of 900 plant…Compu Limited is a company that manufactures computer monitors, keyboards, computer boxes and modems (both internal and external). These four products are sold all over the country and in a few overseas markets. The head office is situated in Sandton, South Africa, with three plants in other parts of the country. Four years ago, a fourth plant was opened in Zimbabwe to take advantage of the inexpensive labour available. 90% of the items manufactured in Zimbabwe are shipped back to South Africa and the remaining 10% are sold in other African countries. Compu Limited advertises its products in computer magazines, on the internet and over the television. It shares are traded on the Johannesburg Stock Exchange (JSE). Three major organisations account for almost 50% of Compu’s sales and the remaining sales are made to other smaller computer manufacturers. Lately one of these customers is constantly complaining about the lack of new technology in Compu’s products. A total of 900 plant…