Please explain the full calculations 10. Wiebe Trucking, Inc., is planning a new warehouse to servethe western United States. Denver, Santa Fe, and Salt LakeCity are under consideration. For each location, annual fixedcosts (rent, equipment, and insurance) and average variablecosts per shipment (labor, transportation, and utilities) arelisted in the following table. Sales projections range from500,000 to 600,000 shipments per year.LocationDenverSanta FeSalt Lake CityAnnual FixedCosts$4,800,000$4,500,000$3,200,000Variable Costsper Shipment$4.55$6.20$7.50a. Plot the total cost curves for all the locations on a singlegraph.b. Which city provides the lowest overall costs?

Find the Calculation methods below: Total Cost = (Annual Fixed cost + (Variable cost x Sales range)…

Answered: Wiebe Trucking, Inc., is planning a new…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section: Chapter Questions

Problem 100P

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Wiebe Trucking, Inc., is planning a new warehouse to servethe western United States. Denver, Santa Fe, and Salt LakeCity are under consideration. For each location, annual fixedcosts (rent, equipment, and insurance) and average variablecosts per shipment (labor, transportation, and utilities) arelisted in the following table. Sales projections range from500,000 to 600,000 shipments per year. a. Plot the total cost curves for all the locations on a singlegraph.b. Which city provides the lowest overall costs?
Wiebe Trucking, Inc., is planning a new warehouse to servethe western United States. Denver, Santa Fe, and Salt LakeCity are under consideration. For each location, annual fixedcosts (rent, equipment, and insurance) and average variablecosts per shipment (labor, transportation, and utilities) arelisted in the following table. Sales projections range from550,000 to 600,000 shipments per year.a. Plot the total cost curves for all the locations on a singlegraph.b. Which city provides the lowest overall costs?
Silky Industries is looking for a location for its second telephone remanufacturing facility. Two cities are under consideration. The two most important location factors are: Factor A “availability of resources” and Factor B “availability of customers.” However, the company is having great difficulty assigning relative weights to these factors. Location Factor Factor Weight Factor Scorefor Each City Blake Irmo A. Availability of resources 5 6 B. Availability of customers 10 7 Total 100 Assuming that the factor weights must sum to 100, what range of weights would make Blake the superior location?
Let us assume that a new medical facility, Health-care, is to be located in XYZ city. The location factors, factor rating and scores for two potential sites are shown in the following table. Which is the best location based on factor rating method? in the following table. Which is the best location based on factor rating method? Sr Location factor Factor Rating Rating Location 1 Location 2 1 Facility utilization 10 5 4 2 Total patient per month 8 4 2 3 Average time per emergency trip 5 4 5 4 Land and construction costs 6 3 4 5 Employee preferences 7 4 4 6 Operations Facility 8 4 3
Wiebe Trucking, Inc., is planning a new warehouse to serve the western United States. Denver, Santa Fe, and Salt Lake City are under consideration. For each location, annual fixed costs (rent, equipment, and insurance) and average variable costs per shipment (labor, transportation, and utilities) are listed in the following table. Sales projections range from 550,000 to 600,000 shipments per year. Location Annual fixed cost Variable Costs per Shipment Denver $5,000,000 $4.65 Santa Fe $4,200,000 $6.25 Salt Lake City $3,500,000 $7.25 a. Plot the total cost curves for all the locations on a single graph. b. Which city provides the lowest overall costs? Thank you!!!
Xun Xu Health and Fitness has several productionfacilities scattered around the central and northern pa rt ofIowa. It would be desirable to have a distribution center fromwhich to send product to retailers such as Sears, WaiMart,Kmart, and large sporting equipment re tailers. Using the datain the following table, calculate the center of gravity locationfor the proposed new facility.
Ang company that produces pleasure boats has decided to expand one of its lines. The company is considering three Location alternatives. The cost structure for each location is given as shown in the table. Location Fixed Cost/yr variable cost/unit L1 6,750 4.2 L2 12,892 2.4 L3 8,632 3.3 a) The range of output for location alternative 1 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range)b) The range of output for location alternative 2 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range)c) The range of output for location alternative 3 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range)d) The alternative would yield the lowest total cost for an expected annual volume of 4505 boats is location ( ) (Ex. type in as L1,…
A clothing manufacturer produces women’s clothes at four locations in Mexico. Relative locationshave been determined, as shown in the table below. The location of a central shipping pointfor bolts of cloth must now be determined. Weekly quantities to be shipped to each location arealso shown in the table. Determine the coordinates of the location that will minimize distributioncosts. Location (x,y) WeeklyQuantityA 5,7 15B 6,9 20C 3,9 25D 9,4 30
b. A food manufacturer wants to locate a warehouse to serve its major customers. The customers, annual volume and the X and Y coordinates are shown in the table below. Customer Annual Volume X-Coordinate Y- Coordinate Judy inc 25 3 7 Zac Supermarket 13 5 2 Harry Inc 6 8 4 Sky Production 4 1 5 i. Using the centre of gravity location technique, determine the location coordinates that will minimize the transportation costs for their family of products.
b. A food manufacturer wants to locate a warehouse to serve its major customers. The customers, annual volume and the X and Y coordinates are shown in the table below. Customer Annual Volume X-Coordinate Y-Coordinate Judy inc 25 3 7 Zac Supermarket 13 5 2 Harry Inc. 6 8 4 Sky Productions 4 1 5 i. Using the centre of gravity location technique, determine the location coordinates that will minimize the transportation costs for their family of products
Dobb's Ltd Wants to choose the best location for its new aluminum plant. The manager ofproductions and operations has three possible locations to choose from. His assistantrecommends that he use break-even analysis location technique to help determine whichlocation is best based on costs. Assuming: Total fixed cost = 80,000 Price per unit= 20 AVC (Average variable cost) = 40 Break-even point= Total fixed cost / (AVC-Price per unit) Break-even point = 80,000/ (40-20) Break-even point = 4,000 1) Demonstrate to the OM manager using graph how to go about choosing the best location using thenumerical example designed above.
An auto company currently maintains plants in Cincinnati and Tulsa to supply two distributioncenters in Boston and Phoenix. The production and distribution costs, distribution demands aswell as facility capacities are given in the table attached. b) Using the intuitive lowest cost method, determines which of the candidate locations, inaddition to existing locations, gives the initial solution with a lower cost? c) Using the solutions obtained in b), identify which distribution center still faces a shortage. d) Suppose the company has chosen Houston as their third plant and would like to know the optimaltransportation strategy that minimizes overall costs by solving a minimum-cost flow problem.Terry has defined decision variables, represented as xij, to denote the number of items shippedfrom plant i to distribution center j wherei= C(Cincinnati), T(Tulsa), and H(Houston)j= B(Boston) and P(Phoenix)

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