The Lafferty Company wants to locate a warehouse from which it will ship products to four customers. The location (in the x - y plane) of the four customers and the number of shipments per year needed by each customer are given in Table 7.1. (All coordinates are in miles, relative to the point x = 0 and y = 0.) A single warehouse must be used to service all of the customers. Lafferty wants to determine the location of the warehouse that minimizes the total annual distance traveled from the warehouse to the customers. Modify the warehouse location model as suggested in Modeling Issue 2. Specifically, assume that the same four customers have the same annual shipments, but now, there are only two possible warehouse locations, each with distances to the various customers. (These distances, along with other inputs, are in the file P07_27.xlsx.) The company can build either or both of these warehouses. The cost to build a warehouse is $50,000. (You can assume that this cost has been annualized. That is, the company incurs a building cost that is equivalent to $50,000 per year.) If only one warehouse is built, it will ship to all customers. However, if both warehouses are built, then the company must decide which warehouse will ship to each customer. There is a traveling cost of $1 per mile. a. Develop an appropriate model to minimize total annual cost, and then use Solver to optimize it. Is this model an NLP or an IP model (or both)? b. Use SolverTable with a single input, the traveling cost per mile, to see how large this cost must be before the company builds both warehouses rather than just one.

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Practical Management Science

6th Edition
WINSTON + 1 other
Publisher: Cengage,
ISBN: 9781337406659
BuyFind

Practical Management Science

6th Edition
WINSTON + 1 other
Publisher: Cengage,
ISBN: 9781337406659

Solutions

Chapter
Section
Chapter 7.5, Problem 27P
Textbook Problem

The Lafferty Company wants to locate a warehouse from which it will ship products to four customers. The location (in the x-y plane) of the four customers and the number of shipments per year needed by each customer are given in Table 7.1. (All coordinates are in miles, relative to the point x = 0 and y = 0.) A single warehouse must be used to service all of the customers. Lafferty wants to determine the location of the warehouse that minimizes the total annual distance traveled from the warehouse to the customers.

Chapter 7.5, Problem 27P, The Lafferty Company wants to locate a warehouse from which it will ship products to four customers.

Modify the warehouse location model as suggested in Modeling Issue 2. Specifically, assume that the same four customers have the same annual shipments, but now, there are only two possible warehouse locations, each with distances to the various customers. (These distances, along with other inputs, are in the file P07_27.xlsx.) The company can build either or both of these warehouses. The cost to build a warehouse is $50,000. (You can assume that this cost has been annualized. That is, the company incurs a building cost that is equivalent to $50,000 per year.) If only one warehouse is built, it will ship to all customers. However, if both warehouses are built, then the company must decide which warehouse will ship to each customer. There is a traveling cost of $1 per mile.

  1. a. Develop an appropriate model to minimize total annual cost, and then use Solver to optimize it. Is this model an NLP or an IP model (or both)?
  2. b. Use SolverTable with a single input, the traveling cost per mile, to see how large this cost must be before the company builds both warehouses rather than just one.

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Chapter 7 Solutions

Practical Management Science
Ch. 7.3 - ELECTRICITY PRICING AT FLORIDA POWER AND LIGHT...Ch. 7.3 - In the electricity pricing model in Example 7.4,...Ch. 7.3 - Continuing Problem 6, suppose the company is...Ch. 7.3 - PRICING SUITS AT SULLIVANS Sullivans is a retailer...Ch. 7.3 - Continuing the previous problem (the model in part...Ch. 7.4 - In estimating the advertising response function in...Ch. 7.4 - The best-fitting advertising response function in...Ch. 7.4 - In judging the fit of the estimated response...Ch. 7.4 - Starting with the solution to the advertising...Ch. 7.4 - The preceding problem indicates how fewer...Ch. 7.4 - In the solution to the advertising selection model...Ch. 7.4 - The advertising response function in Equation...Ch. 7.4 - In Example 7.5, we implied that each of the five...Ch. 7.5 - The Lafferty Company wants to locate a warehouse...Ch. 7.5 - The Lafferty Company wants to locate a warehouse...Ch. 7.5 - The Lafferty Company wants to locate a warehouse...Ch. 7.5 - The Lafferty Company wants to locate a warehouse...Ch. 7.6 - The file P07_28.xlsx lists the scores of all NFL...Ch. 7.6 - Carry out the suggestion in Modeling Issue 3. That...Ch. 7.6 - Carry out the suggestion in Modeling Issue 2 for...Ch. 7.6 - The file P07_31.xlsx contains scores on all of the...Ch. 7.6 - By the time you are reading this, the 2016 NFL...Ch. 7.6 - By the time you are reading this, the 20162017 NBA...Ch. 7.6 - The method for rating teams in Example 7.8 is...Ch. 7.7 - For each of the following, answer whether it makes...Ch. 7.7 - Add a new stock, stock 4, to the model in Example...Ch. 7.7 - In the model in Example 7.9, stock 2 is not in the...Ch. 7.7 - The stocks in Example 7.9 are all positively...Ch. 7.7 - The file P07_39.xlsx contains historical monthly...Ch. 7.7 - This problem continues using the data from the...Ch. 7.7 - Continuing the previous problem, find the...Ch. 7.7 - In many cases, the portfolio return is at least...Ch. 7.8 - Given the data in the file Stock Beta.xlsx,...Ch. 7.8 - Solve the previous problem, but analyze GE instead...Ch. 7 - Suppose Ford currently sells 250,000 Ford Mustangs...Ch. 7 - Suppose the current exchange rate is 115 yen per...Ch. 7 - Another way to derive a demand function is to...Ch. 7 - A company produces widgets at plants 1 and 2. It...Ch. 7 - If a monopolist produces q units, she can charge...Ch. 7 - It costs a company 15 to purchase an hour of labor...Ch. 7 - In the previous problem, what is the minimum-cost...Ch. 7 - The cost per day of running a hospital is 300,000...Ch. 7 - Two companies are producing widgets. It costs the...Ch. 7 - A company manufactures two products. If it charges...Ch. 7 - A brewing company has 100,000 to spend on...Ch. 7 - QH Company advertises during soap operas and...Ch. 7 - A beer company has divided Bloomington into two...Ch. 7 - A company uses raw material to produce two...Ch. 7 - JJ has given you 12 million to spend on...Ch. 7 - Based on Kolesar and Blum (1973). Suppose that a...Ch. 7 - A company has five factories. The x- and...Ch. 7 - Monroe County is trying to determine where to...Ch. 7 - Consider three investments. You are given the...Ch. 7 - You have 50,000 to invest in three stocks. Let Ri...Ch. 7 - An oil company must determine how many barrels of...Ch. 7 - Suppose that you are hiring a weather forecaster...Ch. 7 - The cost of producing x units of a product during...Ch. 7 - Four items are for sale in the Dollar Value store....Ch. 7 - Most economies have a goal of maximizing the...Ch. 7 - Each morning during rush hour, 10,000 people want...Ch. 7 - Based on Grossman and Hart (1983). A salesperson...Ch. 7 - Find the minimum perimeter rectangle having area...Ch. 7 - You are given that the two nonhypotenuse sides of...Ch. 7 - A cylindrical soda can has a volume of 20 cubic...Ch. 7 - City B is 10 miles downstream from city A. City A...Ch. 7 - You can swim two miles per hour and run six miles...Ch. 7 - A triangle has a 5-inch side and a 12-inch side....Ch. 7 - Your company is about to market a new golf club....Ch. 7 - For the product mix examples (Examples 3.1 and 3.2...Ch. 7 - For the oil blending example (Example 4.4 in...Ch. 7 - For the aggregate planning example (Example 4.3 in...Ch. 7 - Consider the sports ratings model in section 7.6....Ch. 7 - Consider the sports ratings model in section 7.6....Ch. 7 - UE is going to invest 400 million to acquire...Ch. 7 - Your family owns a large farm that can grow wheat,...Ch. 7 - GMS Stock Hedging Kate Torelli, a security analyst...Ch. 7 - GMS Stock Hedging Kate Torelli, a security analyst...Ch. 7 - GMS Stock Hedging Kate Torelli, a security analyst...Ch. 7 - GMS Stock Hedging Kate Torelli, a security analyst...

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