OPERATIONS MANAGEMENT LL PACKAGE
11th Edition
ISBN: 9781323592632
Author: KRAJEWSKI
Publisher: Pearson Custom Publishing
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Question
Chapter 15, Problem 3P
A
Summary Introduction
Interpretation: The total driving time for this route is to be calculated if the service starts from A to F to G to D to E to H to B to c, and returns to A.
Concept Introduction: The Company delivers chemical compounds to its 7 industrial customers, in the region.
B
Summary Introduction
Interpretation: Based on the NNH approach, the best possible route, starting from A should be determined. And the total time taken for this route should also be calculated.
Concept Introduction: The Company delivers chemical compounds to its 7 industrial customers, in the region.
C
Summary Introduction
Interpretation: Based on the NNH approach, 7 routes are to be concluded ad derived, starting from each of the customer locations.
Concept Introduction: The Company delivers chemical compounds to its 7 industrial customers, in the region.
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Students have asked these similar questions
1. Explain the concept of total landed cost as it related to transportation. How does it influence market boundaries?
2. Explain the concept of time utility with suitable example.
John Clooney, a bush pilot in Alaska, makes regular charter flights in his floatplane to various towns and cities in western Alaska. His passengers include hunters, fishermen, backpackers and campers, and tradespeople hired for jobs in the different localities. He also carries some cargo for delivery. The following network shows the possible air routes between various towns and cities John might take (with the times, in hours). For safety reasons, he flies point-to-point, flying over at least one town along a route, even though he might not land there. In the upcoming week John has scheduled charter flights for Kotzebue, Nome, and Stebbins. Determine the shortest route between John’s home base in Anchorage and each of these destinations.
High-Low Method for a Service Company
Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed “gross-ton miles,” which is the total number of tons multiplied by the miles moved.
Transportation Costs
Gross-Ton Miles
January
$1,245,000
332,000
February
1,388,100
371,000
March
981,000
240,000
April
1,330,800
359,000
May
1,116,200
289,000
June
1,431,000
390,000
Determine the variable cost per gross-ton mile and the total fixed cost.
Variable cost (If required, round to two decimal places.)
$fill in the blank 1
per gross-ton mile
Total fixed cost
$fill in the blank 2
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