EBK OPERATIONS MANAGEMENT
14th Edition
ISBN: 9781260718447
Author: Stevenson
Publisher: MCG COURSE
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Chapter 15, Problem 3P
A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $500 and B for $525. In addition, A offers a three-day rate of $460 and a nine-day rate of $400, and B offers a four-day rate of $450 and a seven-day rate of $410. Annual holding costs are 35 percent of unit price. Three hundred boxes are to be shipped, and each box has a price of $ 140. Which shipping alternative would you recommend? Explain.
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A manager must make a decision on shipping. There are two shippers, A and B. Both offer a twoday rate: A for $500 and B for $525. In addition, A offers a three-day rate of $460 and a nine-dayrate of $400, and B offers a four-day rate of $450 and a seven-day rate of $410. Annual holdingcosts are 35 percent of unit price. Three hundred boxes are to be shipped, and each box has a priceof $140. Which shipping alternative would you recommend? Explain.
Leach Distributors packages and distributes industrial supplies. A standard shipment can be packaged in a class A container, a class K container, or a class T container. A single class A container yields a profit of
$6;
a class K container, a profit of
$10;
and a class T container, a profit of
$8.
Each shipment prepared requires a certain amount of packing material and a certain amount of time.
Formulate and solve this problem using LP software.
Decision variables:
X1=number
of class A containers to be used
X2=number
of class K containers to be used
X3=number
of class T containers to be used
Resources Needed per Standard Shipment
Class of Container
Packing Material (pounds)
Packing Time (hours)
A
2
2
K
1
6
T
3
4
Total amount of resource available per week
180
pounds…
An oil company ships to three different customers. Customer A requires 60 tons per year, Customer B requires 24 tons, and Customer C requires 8 tons. The product costs $10,000 per ton, and holding costs are estimated at 25%. Each truck costs $800 to send as a fixed cost and incurs an additional $250 charge for each stop it makes. Each truck can haul 12 tons of the product. What is the optimal delivery policy if the oil company ships to each customer individually? What is the optimal delivery policy if the oil company aggregates all shipments to the customers?
Chapter 15 Solutions
EBK OPERATIONS MANAGEMENT
Ch. 15.2 - Prob. 1.1RQCh. 15.2 - Prob. 1.2RQCh. 15.2 - Prob. 2.1RQCh. 15.2 - Prob. 2.2RQCh. 15.2 - READING AT 3M, A LONG ROAD BECAME A SHORTER ROAD...Ch. 15.2 - READING AT 3M, A LONG ROAD BECAME A SHORTER ROAD...Ch. 15.14 - Prob. 1.1RQCh. 15.14 - Prob. 1.2RQCh. 15.14 - Prob. 2.1RQCh. 15.14 - Prob. 2.2RQ
Ch. 15 - Prob. 1DRQCh. 15 - Prob. 2DRQCh. 15 - Prob. 3DRQCh. 15 - Prob. 4DRQCh. 15 - Prob. 5DRQCh. 15 - Prob. 6DRQCh. 15 - Prob. 7DRQCh. 15 - Prob. 8DRQCh. 15 - Prob. 9DRQCh. 15 - Prob. 10DRQCh. 15 - Prob. 11DRQCh. 15 - Prob. 12DRQCh. 15 - Prob. 13DRQCh. 15 - Prob. 14DRQCh. 15 - Prob. 15DRQCh. 15 - Prob. 16DRQCh. 15 - Prob. 17DRQCh. 15 - Prob. 18DRQCh. 15 - Prob. 19DRQCh. 15 - Prob. 20DRQCh. 15 - Prob. 21DRQCh. 15 - Prob. 1TSCh. 15 - Prob. 2TSCh. 15 - Prob. 3TSCh. 15 - Prob. 1CTECh. 15 - Prob. 2CTECh. 15 - Prob. 3CTECh. 15 - Prob. 4CTECh. 15 - A manager at Strateline Manufacturing must choose...Ch. 15 - Prob. 2PCh. 15 - A manager must make a decision on shipping. There...Ch. 15 - Prob. 1CQCh. 15 - Prob. 2CQ
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