Question #2: Transshipment Linear Programming Problem Shell Oil Company, operates oil refineries in Phoenix, Dallas and Atlanta. Refined oil storage facilities are located in Denver and St. Louis. Distributors are located in Boston, Chicago and San Francisco. The plant capacities and distributor demands in Million Barrel per Day (MBD) are as follows: Refinery Phoenix Capacity (MBD) Distributor Boston Demand (MBD) 150 250 200 Dallas Atlanta 200 300 150 Chicago San Francisco The unit transportation costs (in dollars) for shipments from the two plants to the two warehouses and from the two warehouses to the three distributors are as follows: Storage Facility Storage Distributor Refinery Denver St. Louis Facility Boston Chicago San Francisco Phoenix 6 12 Denver 20 14 11 Dallas 10 Atlanta 15 5 8 St. Louis 13 7 18 A. Draw the network representation of the Shell Oil Company transshipment problem. B. Formulate the problem as a linear programming problem.
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- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?• Use this information for the question below. Low-Grade Copper Ore $571 per Ton High-Grade Copper Ore $843 per Ton Coloma Cooper Incorporated is able to produce $640 worth of copper from one ton of low-grade copper ore. Because of its higher copper content, Coloma can produce $940 worth of copper from one ton of high-grade copper ore. A mining company is offering to trade 7,250 tons of low-grade copper ore for 5,000 tons of high-grade copper ore. Assuming Coloma currently has 5,000 tons of high-grade ore, what should it do?Q2) (a) A Missouri job shop has four departments--machining (M), dipping in a chemical bath (D), finishing (F), and plating (P)-assigned to four work areas. The operations manager, Mary Marrs, has gathered the following data for this job shop as it is currently laid out. It costs $0.50 to move 1 workpiece 1 foot in the job shop. Determine cost of material handling in the current layout. Further, suggest a revised layout that has the lowest material handling cost. 100s of Workpieces Moved Between Work Areas Distances Between Work Areas in Feet M D F P M D F P M 18 2 20 12 8 4 2 6. 10 F 18 4
- Problem 11-4 (Algo) The local supermarket buys lettuce each day to ensure really fresh produce. Each morning, any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week, the supermarket can buy fresh lettuce for $6.00 a box. The lettuce is sold for $12.00 a box and the dealer that sells old lettuce is willing to pay $1.40 a box. Past history says that tomorrow's demand for lettuce averages 230 boxes with a standard deviation of 33 boxes. How many boxes of lettuce should the supermarket purchase tomorrow? Note: Use Excel's NORM.S.INV() function to find the z value. Round your answer to the nearest whole number. Number of boxesProblem 20-7 (Algo) Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.29 per card, and the cost of printing is $0.10 per card. The company receives $3.75 per card sold. Since the cards have the current year printed on them, unsold cards have no salvage value. Their customers are from the four areas: Los Angeles, Santa Monica, Hollywood, and Pasadena. Based on past data, the number of customers from each of the four regions is normally distributed with mean 2,300 and standard deviation 200. (Assume these four are independent.) What is the optimal production quantity for the card? (Use Excel's NORMSINV() function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round Normsinv value to 4 decimal places. Roundup your answer to the nearest whole number.) Optimal production quantityQ4) Jackson Hole Manufacturing is a small manufacturer of plastic products used in theautomotive and computer industries. One of its major contracts is with a large computercompany and involves the production of plastic printer cases for the computer company’sportable printers. The printer cases are produced on two injection molding machines. The M-100machine has a production capacity of 25 printer cases per hour, and the M-200 machine has aproduction capacity of 40 cases per hour. Both machines use the same chemical material to produce the printer cases; the M-100 uses 40 pounds of the raw material per hour and the M-200uses 50 pounds per hour. The computer company asked Jackson Hole to produce as many of thecases during the upcoming week as possible; it will pay $18 for each case Jackson Hole candeliver. However, next week is a regularly scheduled vacation period for most of Jackson Hole’sproduction employees; during this time, annual maintenance is performed for all equipment inthe…
- Problem 3-14 (Algo) Demand for stereo headphones and music players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for this year was as follows: MONTH DEMAND (UNITS) 4,150 4,25e 3,950 4, 350 4,95e 4,650 5,25e 4,850 5,35e 5,65e 6,25e 5,95e January February March Аpril Мay June July August September October November December a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.8. (Do not round Intermedlate calculatlons. Round your answers to 2 decimal places.) Month Forecast January February March April May June July August September October November December b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors…Question 2 - Rohe (Hong Kong) Ltd is a pharmaceutical company which manufactures and supplies various drugs for drug stores in Asia. Currently, Rohe (Hong Kong) Ltd has four factories A, B, C and D. Management has decided to build a new factory at a location central to these factories. Information regarding the yearly demands and the map coordinates for the four factories are shown in below table. Factories e Demand e x-coord- 9,000- y-coorde A- 20e 130e Be 3,000 60- 404 Ce 5,000- 70- 100- De 16,000- 90 30 (a) Determine the map coordinates of the new factory. (b) Suggest and elaborate TWO other factors that need to consider in the selection of location. eQ1. General Appliance Corp. produces refrigerators at three plants: Marietta, Minneapolis and Phoenix. They ship them to major retail outlets in Chicago, Los Angeles and New York City. The accounting, production and marketing departments have provided the following information in the given tables; Plant capacities over the next planning period, retail outlet demand and unit cost of shipping between any plant and retail outlet. The company would like to minimize the cost of their transportation network by identifying how many units to ship between each plant and retail outlet. 1. Formulate this linear optimization problem by clearly listing the decision variables, objective function and constraints. 2. Create a spreadsheet model for this problem and solve it using Solver. What is the minimum cost? Plant Supply Marietta 1200 Minneapolis 800 Phoenix 1600 Retail Outlet Demand Chicago 650 Los Angeles 1450 New York City 1500…
- 1. The drug distribution company LOS PAISAS wants to build a new warehouse in Carretera a Masaya area in which they intend to store the following products: equipment and products for babies. With these products, they plan to serve a total of 10,000 pharmacies in Managua. Equipments Baby products Demand (quantity pharmacies served) 2,000 8,000 Cost per product $1,000.00 $30.00 To achieve balanced use of products, baby product must be equal to 60% of authorized product units. Additionally, the number of units requested in medical equipment must be at least 20% of the total authorized. There are a total of 10,000 pharmacies. The optimal plan needs to be determined to maximize the amount of products they must have to meet demand and maximize profits. Can you please explain it Step-by-step and typed? Thank you in advance!Please give answer to question (b) of the following tableMay 77.000 Problem 4 (Regression Analysis, Service Company) Bobby Gonzales owns a catering company that prepares banquets and parties for both individual and business functions throughout the year. Gonzales business is seasonal, with a heavy schedule during the summer months and the year-end holidays and a light schedule at other times. During peak periods there are extra costs. One of the major events Gonzales' customers request is a cocktail party. He offers a standard cocktail party and has developed the following cost structure on a per person basis. Food and bevernges Labor (0.5 hour x PIO per hour) Overhead (0.5 hour x P14 per hour) Total costs per person PI5.00 5.00 7.00 P27.00 Gonzales is quite certain about his estimates of the food, beverages, and labor costs but is not as comfortable with the overhead estimate. This estimate was based on the actual data for the past 12 months presented below. These data indicate that overhead costs vary with the direct labor- hours used. The…