Johan Company produces computers in plants located at towns A, B, and C. The computers are sent to warehouses at different locations U, V, and W. The plants at A, B, and C produce 400, 300, and 300 units of computers respectively each week. Warehouses U, V, and W require 200, 450, and 350 computers respectively. The shipping costs vary as given below. The company would like to find the minimum cost to meet the demands of warehouses. a) Find the initial solution using northwest corner rule method. Town (From) Warehouse (To) Supply Warehouse U Warehouse V Warehouse W Town A RM50 RM40 RM60 400 Town B RM30 RM45 RM40 300 Town C RM60 RM35 RM30 300 Demand 200 450 350 1000

Johan Company produces computers in plants located at towns A, B, and C. The computers are sent to warehouses at different locations U, V, and W. The plants at A, B, and C produce 400, 300, and 300 units of computers respectively each week. Warehouses U, V, and W require 200, 450, and 350 computers respectively. The shipping costs vary as given below. The company would like to find the minimum cost to meet the demands of warehouses. a) Find the initial solution using northwest corner rule method. Town (From) Warehouse (To) Supply Warehouse U Warehouse V Warehouse W Town A RM50 RM40 RM60 400 Town B RM30 RM45 RM40 300 Town C RM60 RM35 RM30 300 Demand 200 450 350 1000

Name: Johan Company produces computers in plants located at towns A, B, and
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Description: Johan Company produces computers in plants located at towns A, B, and C. Thecomputers are sent to warehouses at different locations U, V, and W. The plants at A,B, and C produce 400, 300, and 300 units of computers respectively each week.Warehouses U

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section6.5: Set-covering And Location-assignment Models

Problem 34P

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Located in the picturesque Berkshire Mountains of Western Massachusetts, Ski Butternut has been a family-owned, family-oriented ski destination for more than 50 years. The resort includes 22 trails for downhill skiing and snowboarding, two terrain parks for riding, and a dedicated area for snow tubing. Although Ski Butternut hosts some non-ski events during summer and fall, its business goes into high gear when snowy weather arrives, bringing skiers and riders from across Massachusetts, Connecticut, New York, and New Jersey. Matt Sawyer, Ski Butternuts director of marketing, says the primary target market has always been families with young children who are seeking affordable skiing. Everything from the snack-bar menus to the ski-shop merchandise is presented with families in mind. So that parents can have fun in the snow without worry, the resort has a Childrens Center for children who are too young to ski or have no interest. Fifth-graders are invited to ski for free when accompanied by an adult who buys an adult lift ticket. The resort also created two terrain parks for young snowboarders who were clamoring for a more exciting riding experience. Without the terrain parks, Sawyer says, these boarders would have asked their parents to take them to competing mountains in Vermont. Ski Butternuts research shows that first-timers are a particularly important segment, because they tend to have a strong allegiance to the resort where they learn to ski. First-timers typically visit the resort seven times before seeking out more challenging mountains. As a result, Ski Butternut has made teaching first-timers to ski or snowboard one of its specialties. For this market, the resort bundles ski or board rentals, lift tickets, and also offers a wide range of individual and group lessons for all ages and abilities at a value price. Because Ski Butternut has trails for different skill levels, beginners can challenge themselves by changing trails within the resort once they feel confident. Ski Butternut also targets seniors and college students. Knowing that weekends are the busiest period, the resort offers special midweek prices to attract seniors who have free time to ski on weekdays. College students are particularly value-conscious, and they often travel to ski resorts as a group. As a result, Ski Butternut offers weekend and holiday discounts to bring in large numbers of students who would otherwise ski elsewhere. Thanks to Facebook, Twitter, and other social media, students quickly spread the word about special pricing, which enhances Ski Butternuts ability to reach this key segment. In addition, the resort highlights discount pricing for families when targeting specific segments, such as scout troops, military personnel, emergency services personnel, and members of local ski clubs. Another segment Ski Butternut has selected for marketing attention is ski racers. The resort features professional coaching, lessons, and programs for ski racers in the age group of 8 to 20. Sawyer notes that these ski racers are extremely dedicated to training, which means theyre on the slopes as often as possible, a positive for the resorts attendance and revenue. To stay in touch with racers, Ski Butternut has a special website and a dedicated Facebook page. Sawyer conducts up to 1,200 customer surveys every year to better understand who his customers are and what they need. He also compares the results with skiers who visit mountains of a similar size in other areas. Digging deeper, he analyzes data drawn from the ski shops rental business to build a detailed picture of customers demographics, abilities, and preferences. Based on this research, he knows that the typical family at Ski Butternut consists of two children under age 18 who ski or ride, and at least one parent who skis. Because they can obtain so much information from and about their customers, Sawyer and his team are able to make better decisions about the marketing mix for each segment. By better matching the media with the audience, they get a better response from advertising, e-mail messages, and other marketing communications. As one example, they found that 15 percent of the visitors to Ski Butternuts website were using a smartphone to access the site. Sawyer has now created a special version of the site specifically for mobile use and created a text-message contest to engage skiers who have smartphones.16 What role do geographic variables play in Ski Butternuts segmentation and targeting?
Located in the picturesque Berkshire Mountains of Western Massachusetts, Ski Butternut has been a family-owned, family-oriented ski destination for more than 50 years. The resort includes 22 trails for downhill skiing and snowboarding, two terrain parks for riding, and a dedicated area for snow tubing. Although Ski Butternut hosts some non-ski events during summer and fall, its business goes into high gear when snowy weather arrives, bringing skiers and riders from across Massachusetts, Connecticut, New York, and New Jersey. Matt Sawyer, Ski Butternuts director of marketing, says the primary target market has always been families with young children who are seeking affordable skiing. Everything from the snack-bar menus to the ski-shop merchandise is presented with families in mind. So that parents can have fun in the snow without worry, the resort has a Childrens Center for children who are too young to ski or have no interest. Fifth-graders are invited to ski for free when accompanied by an adult who buys an adult lift ticket. The resort also created two terrain parks for young snowboarders who were clamoring for a more exciting riding experience. Without the terrain parks, Sawyer says, these boarders would have asked their parents to take them to competing mountains in Vermont. Ski Butternuts research shows that first-timers are a particularly important segment, because they tend to have a strong allegiance to the resort where they learn to ski. First-timers typically visit the resort seven times before seeking out more challenging mountains. As a result, Ski Butternut has made teaching first-timers to ski or snowboard one of its specialties. For this market, the resort bundles ski or board rentals, lift tickets, and also offers a wide range of individual and group lessons for all ages and abilities at a value price. Because Ski Butternut has trails for different skill levels, beginners can challenge themselves by changing trails within the resort once they feel confident. Ski Butternut also targets seniors and college students. Knowing that weekends are the busiest period, the resort offers special midweek prices to attract seniors who have free time to ski on weekdays. College students are particularly value-conscious, and they often travel to ski resorts as a group. As a result, Ski Butternut offers weekend and holiday discounts to bring in large numbers of students who would otherwise ski elsewhere. Thanks to Facebook, Twitter, and other social media, students quickly spread the word about special pricing, which enhances Ski Butternuts ability to reach this key segment. In addition, the resort highlights discount pricing for families when targeting specific segments, such as scout troops, military personnel, emergency services personnel, and members of local ski clubs. Another segment Ski Butternut has selected for marketing attention is ski racers. The resort features professional coaching, lessons, and programs for ski racers in the age group of 8 to 20. Sawyer notes that these ski racers are extremely dedicated to training, which means theyre on the slopes as often as possible, a positive for the resorts attendance and revenue. To stay in touch with racers, Ski Butternut has a special website and a dedicated Facebook page. Sawyer conducts up to 1,200 customer surveys every year to better understand who his customers are and what they need. He also compares the results with skiers who visit mountains of a similar size in other areas. Digging deeper, he analyzes data drawn from the ski shops rental business to build a detailed picture of customers demographics, abilities, and preferences. Based on this research, he knows that the typical family at Ski Butternut consists of two children under age 18 who ski or ride, and at least one parent who skis. Because they can obtain so much information from and about their customers, Sawyer and his team are able to make better decisions about the marketing mix for each segment. By better matching the media with the audience, they get a better response from advertising, e-mail messages, and other marketing communications. As one example, they found that 15 percent of the visitors to Ski Butternuts website were using a smartphone to access the site. Sawyer has now created a special version of the site specifically for mobile use and created a text-message contest to engage skiers who have smartphones.16 How is Ski Butternut applying behavioristic variables in its segmentation strategy? Explain your answer.
We have three Suppliers and four Demanders. the Suppliers have inventory of 61 , 49, 29 respectively, and the Demanders require 54, 37, 4, 44 respectively. Shipping costs from S1 to D1, D2, D3 , D4 are 103, 30, 68, 54from S2 to D1, D2, D3 , D4 are 16, 95, 84, 35from S3 to D1, D2, D3 , D4 are 40, 44, 46, 101. Check that this is a balanced transportation problem. Find the optimal mimimal shipping cost:
The Manvi Motors of Malaysia produces cars under an agreement with Suzuki of Japan and trucks under an agreement with General Motors of the USA. The company was established in 1972 and now employs approximately 1000 people and can generally produce an average of 25 cars and trucks per day. Capital investment constraints have limited the nature of Manvi's manufacturing facilities. Consequently, it is not able to manufacture many of the items required for the assembly of cars and trucks. These items are imported from Suzuki or GM. However, both Suzuki and GM must limit the quantities of parts shipped to Manvi because of constraints on their own capacities. GM has guaranteed to provide parts sufficient for up to 200 trucks per month and Suzuki has guaranteed to provide parts sufficient for up to 500 cars per month. GM has just announced several price increases, which have raised the direct manufacturing cost (which includes all labor and material costs) of a Manvi truck from $800 to $1000…
Oranges are grown, picked and then stored in warehouses in Tampa, Miami, and Fresno.Theses warehouses supply oranges to markets in New York, Philadelphia, Chicago, and Boston.The following table shows the shipping costs per truckload (in hundreds of dollars), supply, anddemand. Because of an agreement between distributors, shipments are prohibited from Miamito Chicago:To (cost, in $100)From New York Philadelphia Chicago Boston SupplyTampa 9 14 12 17 150Miami 11 10 6 10 250Fresno 12 8 15 7 200Demand 110 250 140…
i ABC A.Ş., which produces white goods, has sales centers (X, Y, Z) in 3 cities and production centers (A, B, C) in 3 cities. White goods orders of sales centers200, 100 and 300, respectively; The capacities of the production centers are 150, 175 and 275, respectively. The transportation cost of one product sent from each production center to each sales center is given in the table below. X Y ZA 6 8 10B 7 11 11C 4 5 12In order to meet the demands of each sales center in line with the capacities with the least cost;Build the linear programming model of the problem.(Hint: You can define the decision variable as xij: the amount of product sent from the i. Production center to the j. Consumption center.)
Klein Chemicals, Inc., produces a special oil-based material that is currently in short supply. Four of Klein's customers have already placed orders that together exceed the combined capacity of Klein's two plants. Klein's management faces the problem of deciding how many units it should supply to each customer. Because the four customers are in different industries, different prices can be charged because of the various industry pricing structures. However, slightly different production costs at the two plants and varying transportation costs between the plants and customers make a "sell to the highest bidder" strategy unacceptable. After considering price, production costs, and transportation costs, Klein established the following profit per unit for each plant-customer alternative. Plant Customer D1    1 D2    2 D3    3 D4    4 Clifton Springs    1 $32 $34 $32 $40 Danville    2 $34 $30 $28 $38 The plant capacities and customer orders are as follows. Plant Capacity…
Klein Chemicals, Inc., produces a special oil-based material that is currently in short supply. Four of Klein's customers have already placed orders that together exceed the combined capacity of Klein's two plants. Klein's management faces the problem of deciding how many units it should supply to each customer. Because the four customers are in different industries, different prices can be charged because of the various industry pricing structures. However, slightly different production costs at the two plants and varying transportation costs between the plants and customers make a "sell to the highest bidder" strategy unacceptable. After considering price, production costs, and transportation costs, Klein established the following profit per unit for each plant-customer alternative. Plant Customer D1    1 D2    2 D3    3 D4    4 Clifton Springs    1 $32 $34 $32 $40 Danville    2 $34 $30 $28 $38 The plant capacities and customer orders are as follows. Plant Capacity…
Klein Chemicals, Inc’, produces a special oil-based material that is currently in short supply. Four of Klein’s customers have already placed orders that together exceed the combined capacity of Klein’s two plants. Klein’s management faces the problem of deciding how many units it should supply to each customer. Because the four customers are in different industries, different prices can be charged because of the various industry pricing structures. However, slightly different production costs at the two plants and varying transportation costs between the plants and customers make a “sell to the highest bidder” strategy unacceptable. After considering price, production costs, Klein established the following profit per unit for each plant-customer alternative: Customer Plant                      D1                   D2                    D3                    D4 Clifton Springs     $32                  $34                  $32                  $40      Danville                $34…
Grain Elevator ........................Supply Kansas City .............................150 Omaha.......................................175 Des Moines ............................... 275 Total............................................ 600 tons Each mill demands the following number of tons of wheat per month Mill.............................................. Demand Chicago....................................... 200 St. Louis....................................... 100 Cincinnati...................................... 300 Total............................................. 600 tons The cost of transporting one ton of wheat from each grain elevator (source) to each mill (destination) differs according to the distance and rail system. These costs are shown in the following table. Mill 1. Grain Elevator A. Chicago B. St. Louis C. Cincinnati 2. Kansa city $6 $8 $10 3. Omaha 7 11 11 4.…
OCEAN: Mike plans to transport 30 pallets containing 53 cartons and an additional pallet containing 40 cartons from Montreal to Shanghai. Each pallet (including the 1 additional pallet) weighs 800kgs and measures 121cm x 90cm x 100cm. The rate is $92 w/m. Determine the Freight cost ($). 3106 2000 32.67 25.5 Others
A garment producer has three warehouses W1, W2, and W3. These warehouses have 30, 60, and 70 units of their items. Their five retail showrooms at R1, R2, R3, R4, and R5 need 35, 20, 40, 28, and 12 units respectively. Determine the optimum distribution cost. The transport cost in ($ per unit) between every warehouse and every retail showroom is presented in the below table: Warehouse Retail Showroom R1 R2 R3 R4 R5 W1 55 30 40 50 40 W2 35 30 100 45 60 W3 40 60 95 35 30