Linear Programming & Transportation Model - scenario/case (simple example) that can be analyzed by using linear-programming/transportation model specifically in identifying the decision variables, constraints and objective function (goals). - Supply and chain operations specifically
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Linear Programming & Transportation Model - scenario/case (simple example) that can be analyzed by using linear-programming/transportation model specifically in identifying the decision variables, constraints and objective function (goals). - Supply and chain operations specifically
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- Using the “Transportation Matrix”, solve the transportation problem below using the Northwest Corner and Intuitive Lowest-Cost methods. Use the Northwest Corner method result as the starting point and solve for the optimal solution using the Stepping-Stone method. Show all steps and all calculations when doing the Stepping-Stone method. Plants Supply Destination Demand Kansas City 35 Chicago 30 Omaha 50 St louis 65 Des Moines 50 Cincinnati 40 Total 135 Tons Total 135 Tons transport cost form Plants to Destinations ($/Ton) Plants Chicago St louis Cincinnati Kansas city $ 4.00 $ 3.00 $ 3.00 Omaha $ 6.00 $ 7.00 $ 6.00 Des Moines $ 8.00 $ 2.00 $ 5.00 A. Northwest Corner method B. Intuitive Lowest-Cost method C. Stepping-Stone methodSuppose there is a transportation model with 4 factories and 6 warehouses. In order to develop an initial solution using the intuitive lowest cost method, do we have to add one or more dummy sources in the transportation matrix, and why?2. Unbalanced. Provide the transportation model for the calculation of cost given the following data: Use the Stepping Stone Method to solve the following. Use degeneracy method or dummy method if necessary.
- Consider the following transportation decision-making information: Plant Capacity Store Demand A 400 X 200 B 500 Y 250 C 100 Z 300 Total 1000 Total 750 Cost to ship from plant to store (per unit of demand) Plant Store X Y Z A $2 $2 $3.5 B $4 $5 $4.5 C $3 $3 $3 A. Develop the following shipping assignment table that uses the Solver function to find the optimal shipping patterns between the plants and the stores. Plant Store X Y Z A B C B. What is the minimal shipping cost?Explain why once revenue and total logistics costs are considered together, the optimal number of facilities in a distribution network may well increase compared to the optimal number of facilities based on total logistics costs only. Include details about the behavior of relevant cost and revenue elements.Transportation cost mainly depends on which of the following factors? (a) Distance(b) Weight of merchandise(c) Time required for transportation(d) All of the above
- 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, V, and W require 200, 450, and 350 computers respectively. Theshipping costs vary as given below. The company would like to find the minimum costto 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 RM60400 Town B RM30 RM45 RM40300 Town C RM60 RM35 RM30300 Demand 200 450 350 10004. Companies A, B, and C supply components to three plants (F, G, and H) via two crossdocking facilities (D and E). It costs $4 to ship from D regardless of final destination and $3 to ship to E regardless of supplier. Shipping to D from A, B, and C costs $3, $4, and $5, respectively, and shipping from E to F, G, and H costs $10, $9, and $8, respectively. Suppliers A, B, and C can provide 200, 300 and 500 units respectively and plants F, G, and H need 350, 450, and 200 units respectively. Crossdock facilities D and E can handle 600 and 700 units, respectively. Logistics Manager, Aretha Franklin, had previously used "Chain of Fools" as her supply chain consulting company, but now turns to you for some solid advice. Set up the solution in Excel and solve with Solver. What are total costs?In each of the following, name the term defined. Answers are listed at the bottom. The main cost criterion employed when a transportation model is used for analyzing a logistics network. The Microsoft Excel function used to solve the transportationmodel. For the transportation model to be able to find a feasible solution, this must always be greater than or equal to total demand. The “changing cells” in a transportation model represent this. This is a method that locates facilities relative to an X, Y grid. A technique that is useful for screening potential locations for services.
- Cars-to-Dealers Logistics Inc. is the exclusive logistics provider for the Summit Motor Co. and has responsibilityfor transporting cars from Summit’s 3 manufacturing plants in Toledo, OH; Charlotte, NC and Savannah, GA tothe 7 regional dealer locations as in the tables provided in your dataset. To do this, Cars-to-Dealers uses threetransshipment facilities and all cars in the distribution network pass through these transshipment facilities.Dataset also contains the information about the capacities of each of these transshipment facilities, the demandrequirement at each of the regional dealer locations and the unit cost to ship one car between the variouslocations.In addition to supply of cars (manufacturers) and demand for cars (dealers) there are two types of constraintsfor each transshipment facility:1. Balance flow constraints: dictate that all cars flowing into a transshipment facility should also flow out of thetransshipment facility – i.e. no inventory of cars should remain at…Operations management Explain the steps in the intuitive lowest cost method of the transportation model in logistics ?Your company offers a weekly consolidation service from Toronto to Frankfort , via Lufthansa Airways. The carrier has given you a 1000 kg (or less) buying rate of CAN $2.27/kg and a plus 1000 kg buying rate of CAN $1.85/kg. You sell this service to clients who ship 700 kg (or less) at a rate of CAN $2.95/kg and for clients who ship in excess of 700 kg at a rate of CAN $2.55/kg. A) Shipper: J&J Company 123 John Street Toronto, ON, Canada, L5R 2N3 Shipment: 140 cartons of books Total weight: 426 kg Dimensions of each carton: 15 cm x 49 cm x 47 cm B) Shipper: R&R Company 432 Avenue Road Toronto, ON, Canada, R2S 1A3 Shipment: 380 cartons of umbrellas Total weight: 700 kg Dimensions of each carton: 39 in x 18 in x 19 in What is the profit on this shipment? full calculation