A supplier ships goods from Richmond, VA to three market places in 3 cities (Chicago, IL; Athens, GA;St. Luis, MO). The supplier can ship every day, every other day, or every third day.There is a penalty of $0.30/cwt for each day delayed.Consolidating shipments allows for lower transportation costs from larger loads, but incurs penaltycosts due to the delay.Transportation Rate(S/cwt)ShipmentCityWeight/dayLTL <TL >50,000 lb50000 IbChicago, IL18,000 lb (180 cwt)1.501.25Athens, GA15,000 lb (150 cwt)1.351.00St. Luis, MO12,000 lb (120 cwt)2.001.50Total45,000 lb = 450 cwt!3!Find what is the cost for the following:Shipping Every DayShipping on the alternate Day (every two days)Shipping every three Day

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Answered: Find what is the cost for the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section12.5: Analytic Steady-state Queueing Models

Problem 30P

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The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.
Mount Isa Mines is one of the world’s great metal mines. Its main operations are at Mount Isa, in Queensland, Australia, where it mines adjacent deposits of copper and silver-lead-zinc ores. Production levels change with world demand and prices, but in a typical year, 7 million tonnes of ore are mined to give 150,000 tonnes of copper and lead (containing silver) and 200,000 tonnes of zinc. Mount Isa has serious transport problems. It produces huge quantities of ore in a remote area of Australia, while the main demand for finished metals is in the industrialized areas of the world, particularly Europe. The problem is to process the ores and move them to final markets as cheaply as possible. You can see the scope of the problem from an outline of the journey for copper, this starts with underground explosions to break up the ore body. The broken ore is collected by front-end loaders and put onto ore trains that carry it to underground crushers. The crushed ore is then hoisted to the…
Shipping Fruit. Wollmer Distribution Company collects fruit from several small farms in the region, consolidates its collections, and then ships the fruit to a regional wholesale fruit market by truck. Having made their collections, the company has in stock 57 tons of grapes, 62 tons of peaches, and 81 tons of bananas. Wollmer owns four trucks that can transport fruit to market. Each truck has its own capacity, and Wollmer has discovered that yield losses occur at different rates depending on which fruit is carried in which truck. The truck suspension system and the efficiency of the refrigeration system seem to account for most of the losses. The following table shows the loss as a percentage: Grapes Peaches Bananas Capacity Truck 1 12% 10% 4% 40 T Truck 2 12% 14% 5% 50 T Truck 3 16% 13% 6% 55 T Truck 4 18% 17% 8% 75 T The current market prices for the three fruits are as follows: Fruit Price / Ton Grapes $ 500 Peaches 1,000 Bananas 1,750 As a logical way of loading the trucks, a…
Mount Isa Mines is one of the world’s great metal mines. Its main operations are at Mount Isa, in Queensland, Australia, where it mines adjacent deposits of copper and silver– lead–zinc ores. Production levels change with world demand and prices, but in a typical year 7 million tonnes of ore are mined to give 150,000 tonnes of copper and lead (containing silver) and 200,000 tonnes of zinc. Mount Isa has serious transport problems. It produces huge quantities of ore in a remote area of Australia, while the main demand for finished metals is in the industrialised areas of the world, particularly Europe. The problem is to process the ores and move them to final markets as cheaply as possible. You can see the scope of the problem from an outline of the journey for copper. This starts with underground explosions to break up the ore body. The broken ore is collected by front- end loaders and put onto ore trains that carry it to underground crushers. The crushed ore is then hoisted to the…
Mount Isa Mines is one of the world’s great metal mines. Its main operations are at Mount Isa, in Queensland, Australia, where it mines adjacent deposits of copper and silver-lead-zinc ores. Production levels change with world demand and prices, but in a typical year 7 million tonnes of ore are mined to give 150,000 tonnes of copper and lead (containing silver) and 200,000 tonnes of zinc. Mount Isa has serious transport problems. It produces huge quantities of ore in a remote area of Australia, while the main demand for finished metals is in the industrialized areas of the world, particularly Europe. The problem is to process the ores and move them to final markets as cheaply as possible. You can see the scope of the problem from an outline of the journey for copper, this starts with underground explosions to break up the ore body. The broken ore is collected by front-end loaders and put onto ore trains that carry it to underground crushers. The crushed ore is then hoisted to the…
Personal Computer Inc., produces up to 5000 computers in Boston and up to 3500 computers in Raleigh each year. Los Angeles customers must receive 2300 computers, 3700 computers must be supplied to New York customers, and Seattle customers must be supplied 1300 computers. Producing a computer costs $250 in Boston and $275 in Raleigh. Computers are transported by plane and can be sent through Chicago. The costs of sending a computer between pairs of cities are given below:---------------------------------------------------------To-------------------------Chicago----Los Angeles----New York----Seattle------------Boston-------$40----------$80-------------$30-------------$75From----Raleigh ----$45----------$75-------------$55-------------$85------------Chicago------$0-----------$65-------------$45-------------$60a. Determine how to minimize the total (production plus distribution) cost of meeting Personal Computer Inc.’s annual demand. Why doesn't it make any sense to ship any computers…
NTS is a Swiss intermodal operator located in Lausanne. When customers need to transport goods between origin and destination, NTS supplies them with one or more empty containers in which the goods can be loaded. Upon arrival at the destination, the goods are unloaded, and the empty containers must be transported to the pickup point for new customers. Therefore, NTS management needs to reallocate empty containers periodically (every week). The company's focus is on the transportation activity of empty containers, which is very expensive (almost 35% of the total operational costs). In May 2023, several empty containers, totaling 20 containers, need to be reallocated among terminals in Amsterdam, Berlin, Munich, Paris, Milan, Barcelona, and Madrid. The available or requested number of empty containers at various terminals is reported, along with the transportation costs (in euros per container) as seen in Figure 1.Determine how to solve the problem with the goal of minimizing…
NTS is a Swiss intermodal operator located in Lausanne. When customers need to transport goods between origin and destination, NTS supplies them with one or more empty containers in which the goods can be loaded.Upon arrival at the destination, the goods are unloaded, and the empty containers must be transported to the pickup point for new customers. Therefore, NTS management needs to reallocate empty containers periodically (every week). The company's focus is on the transportation activity of empty containers, which is very expensive (almost 35% of the total operational costs). In May 2023, several empty containers, totaling 20 containers, need to be reallocated among terminals in Amsterdam, Berlin, Munich, Paris, Milan, Barcelona, and Madrid. The available or requested number of empty containers at various terminals is reported, along with the transportation costs (in euros per container) as seen in Figure 1. Determine how to solve the problem with the goal of minimizing…
In a large microelectronics plant, the assembly cell for circuit boards has a demand for 300 units an hour. Two feeder cells supply partsA and B to the assembly cell (one A and one B for each board). Standard containers that look like divided trays are used. A container will hold 22 As or 13 Bs. It takes 13 minutes to fill up a container with As and 22 minutes to fill up a container with Bs. Transit time to the assembly cell is 5 minutes for both A and B. No safety factor is used. Kanbans to be circulated Between Process A and Assembly cell? Kanbans to be circulated Between Process B and Assembly cell?
Zara is a global clothing company based in Spain and it gives utmost importance to customer value, hence it tries to catch customer satisfaction in transportation. Zara expects the following points to be fulfilled by transport companies: The products must be reached to desired places on time, the products must be shipped without any damage or unwanted condition, the products must be carried to next channel level in a good condition. Additionally, Zara gives less weight to freight costs while determining product prices. Which of the followings is less important in transportation policy of Zara? Select one: a. Condition of goods b. Pricing c. Delivery performance d. Customer satisfaction
A company normally ships to a customer by rail at a cost of $500 per load. The transittime is 14 days. The goods can be shipped by truck for $700 per load and a transit timeof 4 days. If transit inventory cost is $35 per day, what does it cost to ship each way?
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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Find what is the cost for the following: Shipping Every Day Shipping on the alternate Day (every two days) Shipping every three Day