The student chapter of Philippine Society of Mechanical Engineers is planning a 6-day trip to the National conference in North of Luzon. For transportation the group will rent a car from either the Motor Pool Corporation or a local car dealer. The Motor Pool charges Php 20.80 per km, has no daily fee, and the motor pool pays for the gas. The car dealer charges Php 1,500 per day and Php 11.2 per km, but the group must pay for the gas. The car's fuel rating is 40 km per gallon, and the price of the gas is estimated to be Php 96 per gallon. a. If the students anticipate driving 1,200 km total, from whom should they rent a car? b.At what point, in km , is the cost of both options equal? c.The car dealer has offered a special student discount and will give the students 50 free km per day, from whom should they rent a car. What is the new breakeven point?
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- Tommy Hilfiger is currently considering to source certain textile goods, Tommy Jeans, from Mexico. The estimated shipping time from Mexico to the U.S. for each shipment of Tommy Jeans is 4 days and the estimated freight cost of each shipment is $800. On the other hand, the current average shipping time from Vietnam to the U.S. for each shipment of Tommy Jeans is 23 days and the average freight cost is $2300. Even though the shipping time and freight cost seem to be much lower in case of Mexico, Tommy Hilfiger management is concerned about the production cost of each Jeans shipment. The management anticipates that the production cost of each Jeans shipment will be higher in Mexico compared to Vietnam. However, Tommy Hilfiger management has decided that even if the total cost (sum of production cost, freight cost, and holding cost) remain similar to Vietnam, Tommy Hilfiger will still source Jeans from Mexico because of the reduced shipping time, which, in turn, will result in better…A&B Transport Co. is a company that manages a food supply chain. The problem involves the delivery of cargo (canned peas) from four canneries (loading ports) to three destination ports, using tankers. Since the shipping costs are a major expense for the company, management is initiating a study to reduce them as much as possible. For the upcoming season, has come up with an estimation of the available output from each cannery. Furthermore, each destination port has also specific requirements for the total supply of peas that have to be satisfied. This information (in units of tanker loads), along with the shipping cost per tanker load for each loading - destination port combination, is given in Tables 1 and 2. The problem for the A&B Transport Co. is to determine the shipping strategy given the various loading - destination port combinations, so that the total shipping costs are minimised. Question 1 . A&B Transport Co is thinking of including in its strategy the shipment…Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure of $10,000,000 on new service equipment and would generate annual net cash inflows from reduced costs of operations equal to $2,500,000 per year for each of the next 8 years. In year 8 the firm will also get back a cash flow equal to the salvage value of the equipment, which is valued at $1 million. Thus, in year 8 the investment cash inflow totals $3, 500, 000. Calculate the project's NPV using a discount rate of 9 percent.
- A company manufactures two products X1 and X2 on three machines A, B, and C. X1 require 1 hour on machine A and 1 hour on machine B and yields a revenue of Php 30. Product X2 requires 2 hours on machine A and 1 hour on machine B and 1 hour on machine C and yields revenue of PhP 50. In the coming planning period the available time of three machines A, B, and C are 2000 hours, 1500 hours and 600 hours respectively. Find the optimal product mix. Use MS Excel Solver.A semiconductor manufacturer produces a particular solid-state module that it supplies to four different television manufacturers. The module can be produced at each of the corporation's three plants, although the costs vary because of differing production efficiencies at the plants. Specifically, it costs 110 units to produce a module at plant A, 95 units at plant B and 103 units at plant C. Monthly production capacities of the plants are 7500, 10000, and 8100 modules, respectively. Sales forecasts project monthly demand at 4200, 8300,6300 and 2700 modules for television manufacturers I, II, III and IV respectively. If the cost for shipping a module from a factory to a manufacturer is as shown below, find a production schedule that will meet all needs at minimum total cost. II II IV 1 13 9. 19 В 1 16 1 14 2 13 1 15 4Schneider Logistics Company has built a new warehouse in Columbus, Ohio, to facilitate the consolidation of freight shipments to customers in the region. George Schneider must determine how many teams of dock workers he should hire to handle the cross-docking operations and the other warehouse activities. Each team costs $5,000 a week in wages and overhead. Extra capacity can be subcontracted at a cost of $8,000 a team per week. Each team, whether in-house or subcontracted, can satisfy 200 labor hours of work a week. The labor hour requirements for the new facility are uncertain. Management has estimated the following probabilities for the requirements: Requirements (hours/wk) 200 400 600 Number of teams 1 2 3 Probability 0.20 0.50 0.30 How many teams should Schneider hire?
- Trips Logistics, a third-party logistics firm that provides warehousing and other logistics services, is facing a decision regarding the amount of space to lease for the upcoming three-year period. The general manager has forecast that Trips Logistics will need to handle a demand of 100,000 units for each of the next three years. Historically, Trips Logistics has required 1,000 square feet of warehouse space for every 1,000 units of demand. For the purposes of this discussion, the only cost Trips Logistics faces is the cost for the warehouse. Trips Logistics receives revenue of $1.22 for each unit of demand. The general manager must decide whether to sign a three-year lease or obtain warehousing space on the spot market each year. The three-year lease will cost $1 per square foot per year, and the spot market rate is expected to be $1.20 per square foot per year for each of the three years. Trips Logistics has a discount rate of k = 0.1.The Thor International Company operates four factories that ship products to five warehouses. The shipping costs, requirements, and capacities are shown in the tableau below. Use the transportation method to find the shipping schedule that minimizes shipping cost. Factory Shipping Cost per Case to each Warehouse Capacity W1 W2 W3 W4 W5 Dummy F1 $4 $5 $4 $3 $6 $0 50,000 F2 $3 $4 $4 $5 $7 $0 80,000 F3 $3 $4 $5 $3 $5 $0 90,000 F4 $4 $6 $5 $6 $3 $0 40,000…Formulate but do not solve the problem.The management of Hartman Rent-A-Car has allocated $2.25 million to buy a fleet of new automobiles consisting of compact, intermediate-size, and full-size cars. Compacts cost $18,000 each, intermediate-size cars cost $27,000 each, and full-size cars cost $36,000 each. If Hartman purchases twice as many compacts as intermediate-size cars and the total number of cars to be purchased is 100, determine how many cars of each type will be purchased. (Assume that the entire budget will be used. Let x, y, and z denote the number of compact, intermediate-sized, and full-size cars purchased, respectively.) = 2,250,000 = x = 100
- The MidLands Trucking Company based in Louisvillehas eight trucks located throughout the Mideast that havedelivered their loads and are available for shipments. Through their Internet logistics site MidLands has re-ceived shipping requests from 12 customers. The follow-ing table shows the mileage for a truck to travel to a customer location, pick up the load, and deliver it. Determine the optimal assignment of trucks to customersthat will minimize the total mileage. Customers Truck A B C D E F G H I J K L1 500 730 620 410 550 600 390 480 670 710 440 5902 900 570 820 770 910 660 650 780 840 950 590 6703 630 660 750 540 680 750 810 560 710 1200 490 6504 870 1200 810 670 710 820 1200 630 700 900 540 6205 950 910 740 810 630 590 930 650 840 930 460 5606 1100 860 800 590 570 550 780 610 1300 840 550 7907 610 710 910 550 810 730 910 720 850 760 580 6308 560 690 660 640 720 670 830 690 880 1000 710 680A company currently ships products from 5 plants to 4 warehouses. The company is considering the option of closing down one or more plants. This would increase distribution cost but perhaps lower overall cost. What plants, if any, should the company close? Transportation Costs (per 1000 products) Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Warehouse 1 $4,000 $2,000 $3,000 $2,500 $4,500 Warehouse 2 $2,500 $2,600 $3,400 $3,000 $4,000 Warehouse 3 $1,200 $1,800 $2,600 $4,100 $3,000 Warehouse 4 $2,200 $2,600 $3,100 $3,700 $3,200 Demand from warehouses are: Demand Warehouse 1 15,000 Warehouse 2 18,000 Warehouse 3 14,000 Warehouse 4 20,000 Capacity of plants are: Plant 1 Plant 2 Plant 3 Plant 4 Plant 5…Anderson Watch Company is considering opening four possible distribution centers located in Atlanta, Lexington, Milwaukee, and Salt Lake City with a fixed cost to open of $17,000, $22,000, $35,000, and $25,000, respectively. They currently have ten retail stores located in Seattle, San Francisco, Las Vegas, Tucson, Denver, Dallas, Birmingham, Orlando, Cleveland, and Philadelphia. Lisa, the supply chain VP, wants to minimize the transportation costs of shipping their French down pillows. The per-unit shipping cost from each distribution center to each retail location and the amounts currently in inventory and ordered at each retail location are shown in the following tables. What is the minimum cost solution? What is the minimum cost solution if Lisa wants to use single sourcing?