Each day, northern, central, and southern California use 120, 140, and 160 billion gallons of water respectively. The number or gallons each region has available is given below. The cost of shipping 1B gallons of water between the three regions is given below. Each billion of gallons of unmet demands incurres shortage costs (see below). How should California water be distributed to minimize the total cost, i.e., the sum of shipping and shortage cost? Northern Central Southern Sent Available From Northern 140 Central 0 <= 140 Southern 80 Shortage 80 Received %3D %3D Needed Unit cost per To bill. Gall. Northern Central Southern This model will be tested on different sets of input data. $ 5,000.00$ $ 7,000.00 $ $ 10,000.00 $ $ 6,000.00 $ From Northern 7,000.00 $ 10,000.00 5,000.00 $ 6,000.00 $ 5,500.00 $ Central 6,000.00 5,000.00 Southern Shortage 9,000.00 total cost #VALUE! Cost of tradportation Shortage cost #VALUE!
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- Jefferson Distributing is analyzing distribution networks with either 4, 5, 6 or 7 warehouses to serve 200 major customers in Europe. Relevant costs include transportation cost from the warehouses to customers, fixed facility costs, and inventory costs in the warehouses. The table below shows the annual transportation cost produced by a facility location software tool for locating 4, 5, 6 or 7 warehouses for this company. Suppose that annual inventory cost for the network can be modeled as $800,000 times the square root of the number of warehouses. Thus, if the network has 4 warehouses, then the annual inventory cost would be $800,000 x √4= $1,600,000. Number of Warehouses Transportation Cost 4 8,000,000 5 6,500,000 6 5,000,000 7 4,400,000 a) If the annual fixed cost per warehouse is $1,000,000, how many warehouses should there be to minimize the total (transportation + warehouse + inventory) cost? b) Now suppose the…Scala Oil has the following information available regarding its three divisions: production, transportation and refining: Production (crude oil) Transportation (Crude oil) Refining (petrol) Variable costs: $2/barrel (of oil) Variable costs: $1/barrel Variable costs: $8/barrel Fixed costs: $6/barrel Full Cost: $8/barrel Fixed costs: $3/barrel Full Cost: $4/barrel Fixed costs: $6/barrel Full Cost: $14/barrel The division sells to the transport division. The external market will pay $13 a barrel. The division buys from the production division and sells to the refining division; the market price is $18 a barrel The external market will pay $52 a barrel.It refines at a rate of 2 barrels of crude oil to 1 barrel of petrol. a For an output of 100 barrels of crude oil, produce profit statements indicating revenues, total costs including transferred in costs and profits for each division using: iii) negotiated prices (from production to transport at $10 a…Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets, Bangladesh and Sri Lanka. Demand for Bicycles in these two markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) a) Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market. b) Now consider two cases: (i) Company is effectively able to price discriminate in the two markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging the same price in the two markets what are the profit maximizing levels of price, output, and the total profits?…
- A retail chain has 8 stores in a region supplied from 4 supply sources. Trucks have a capacity of 40,000 units and cost $1000 per load plus $100 per delivery. Thus a truck making 2 deliveries charges $1200. The cost of holding one unit in inventory at retail for a year is $0.20. The vice president of the supply chain is considering whether to use directshipping from suppliers to retail stores or setting up milk runs from suppliers to stores. What network do you recommend if annual sales for each product at each retail store are 960,000 units? What network do you recommend if sales for each product at each retail store are 120,000 units?The optimal solution to the original Grand Prix problem indicates that with a unit shipping cost of $132, the route from plant 3 to region 2 is evidently too expensive—no autos are shipped along this route. Use SolverTable to see how much this unit shipping cost would have to be reduced before some autos would be shipped along this route.I need a detailed explanation and assistance to solve this problem: FruitNuts is a store that sells a variety of unpackaged dried fruit and nut items. The current amounts of supplies of each item are listed in the following table: Item Supply (pounds) dried bananas 800 dried apricots 600 coconut pieces 500 raisins 700 walnuts 900 In addition to the individual items above, the store also sells two kinds of mix products: A Trail Mix product which consists of equal parts of all individual items above A Subway Mix product which consists of two parts walnuts and one part each of the dried bananas, raisins, and coconut pieces. To speed up service, the manager decides to package some of the merchandise in boxes ahead of time. Packaging and price data on boxes are shown below: Packaged Product Weight/Box (pounds) Price/Box ($) Trail Mix 2 7.00 Subway Mix 1 3.00 Dried Bananas 1 2.80 Dried Apricots 1 3.25…
- A company has three manufacturing plants (in Atlanta,Tulsa, and Springfi eld) that produce a product that is then shipped to one of four distribution centers. Th e three plants can produce13, 18, and 12 truckloads of product each week, respectively. Eachdistribution center needs 10 truckloads of product each week. Th eshipping costs per truckload between the plants and distributioncenters are given in the table. Th e company needs to determinehow much to ship from each plant to each distribution center andwould like to minimize total shipping costs (a) Formulate an LP to minimize the total shipping costs.(b) Set up and solve the problem on a spreadsheet.(c) What is the optimal solution? Explain the rationale for thesolutionGeneral Ford produces cars in Los Angeles and Detroit and has a warehouse in Atlanta. The company supplies cars to customers in Houston and Tampa. The costs of shipping a car between various points are listed in the file P05_54.xlsx, where a blank means that a shipment is not allowed. Los Angeles can produce up to 1600 cars, and Detroit can produce up to 3200 cars. Houston must receive 1800 cars, and Tampa must receive 2900 cars.a. Determine how to minimize the cost of meeting demands in Houston and Tampa.b. Modify the answer to part a if no shipments through Atlanta are allowed.The New England Cheese Company produces two cheese spreads by blending mild cheddar cheese with extra sharp cheddar cheese. The cheese spreads are packaged in 12-ounce containers, which are then sold to distributors throughout the Northeast. The Regular blend contains 75% mild cheddar and 25% extra sharp, and the Zesty blend contains 70% mild cheddar and 30% extra sharp. This year, a local dairy cooperative offered to provide up to 8500 pounds of mild cheddar cheese for $1.40 per pound and up to 2700 pounds of extra sharp cheddar cheese for $1.60 per pound. The cost to blend and package the cheese spreads, excluding the cost of the cheese, is $0.40 per container. If each container of Regular is sold for $2.20 and each container of Zesty is sold for $2.00, how many containers of Regular and Zesty should New England Cheese produce? Do not round your interim computations. If required, round your answers to the nearest whole number. Let R = number of containers of Regular Z =…
- he New England Cheese Company produces two cheese spreads by blending mild cheddar cheese with extra sharp cheddar cheese. The cheese spreads are packaged in 12-ounce containers, which are then sold to distributors throughout the Northeast. The Regular blend contains 80% mild cheddar and 20% extra sharp, and the Zesty blend contains 60% mild cheddar and 40% extra sharp. This year, a local dairy cooperative offered to provide up to 8,010 pounds of mild cheddar cheese for $1.20 per pound and up to 3,015 pounds of extra sharp cheddar cheese for $1.40 per pound. The cost to blend and package the cheese spreads, excluding the cost of the cheese, is $0.20 per container. If each container of Regular is sold for $1.95 and each container of Zesty is sold for $2.25, how many containers of Regular and Zesty should New England Cheese produce? Regular Zesty Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will…A company has four warehouses and six stores. The warehouses altogether have a surplus of 22 units of a given commodity, divided among them as follows: Warehouses 1 2 3 4 Surplus 5 6 2 9 The six stores altogether need 22 units of the commodity. Individual requirements at b stores 1,2,3,4,5 and 6 are 4,4,6,2,4 and 2 units respectively. Cost of shipping one unit of commodity from warehouse i to store j in $ dollars is given in the matrix below. Stores Warehouses 1 2 3 4 5 6 1 9 12 9 6 9 10 2 7 3 7 7 5 5 3 6 5 9 11 3 11 4 6 8 11 2 2 10 Required Formulate the mathematical model for the problem How should the products be shipped from the warehouses to the stores so that the transportation cost is minimum?Fairway Inc. makes custom golf clubs. They are manufactured in 3 plants in Denver, Phoenix, and Dallas. They are then shipped to distribution centers in Sacramento, Salt Lake, Chicago, Albuquerque, and New York. Since shipping costs are a major expense, management requires an analysis to determine the optimal shipping routes and quantities shipped along those routes. Each plant has a maximum production capacity and each distribution center has a demand that must be satisfied. You must determine how many clubs to send along each route, staying within plant capacity, meeting demand, for the lowest total shipping cost. Shipping Costs per route Plants Sacramento Salt Lake Chicago Albeq New York Capacity Denver $10 $8 $6 $5 $4 310 Phoenix $6 $5 $4 $3 $6 260 Dallas $3 $4 $5 $5 $9 280 Demand 180 80 200 160 220 Number to ship from plant to warehouse: Plants Sacramento Salt Lake Chicago Albeq New York Total Shipped Denver Phoenix…