2. Jackson Shipping has two supply depots in Atlanta and Dallas. Each can hold 200 shipping pods at a time. Each week, they ship pods to four locations: New York, Los Angeles, Chicago, and Miami. Costs are shown in the table below. New York needs 110 units, Los Angeles needs 120, Miami 75, and Chicago 85 each week. There are shipping limits however, Dallas can only send 30 units to Chicago and Atlanta can only route 40 to Miami. New York Los Angeles Chicago Miami Atlanta 20 70 25 15 Dallas 35 35 15 25 a) What is the standard format for this problem? b) What routes will be shipped and in what numbers to minimize costs?

2. Jackson Shipping has two supply depots in Atlanta and Dallas. Each can hold 200 shipping pods at a time. Each week, they ship pods to four locations: New York, Los Angeles, Chicago, and Miami. Costs are shown in the table below. New York needs 110 units, Los Angeles needs 120, Miami 75, and Chicago 85 each week. There are shipping limits however, Dallas can only send 30 units to Chicago and Atlanta can only route 40 to Miami. New York Los Angeles Chicago Miami Atlanta 20 70 25 15 Dallas 35 35 15 25 a) What is the standard format for this problem? b) What routes will be shipped and in what numbers to minimize costs?

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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3. A product is manufactured by four factories A, B, C and D. The unit production costs in them are ETB 2, ETB 3, ETB 1 and ETB 5 respectively. Their production capacities are 50, 70, 30 and 50 units respectively. These factories supply the product to four stories, demands of which are 25, 35, 105, and 20 units respectively. Unit transportation cost in ETB for each factory to each store is given in the table below. Factories B C D 1 2 10 13 4 Stores 2 4 8 3 6 3 6 7 9 8 HUSES 4 11 5 12 3 Determine the transportation plan to minimize the total production-cum-transportation cost by using: a. Vogel's Approximation Method (VAM) for initial basic feasible solution b. North West Corner Method (NWCM) c. Least Cost Method (LCM)
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3. A product is manufactured by four factories A, B, C and D. The unit production costs in them are ETB 2, ETB 3, ETB 1 and ETB 5 respectively. Their production capacities are 50, 70, 30 and 50 units respectively. These factories supply the product to four stories, demands of which are 25, 35, 105, and 20 units respectively. Unit transportation cost in ETB for each factory to each store is given in the table below. Stores 1 3 4 A 2 4 6. 11 Factories В 10 8. C 13 3 9 12 D 4 8 Determine the transportation plan to minimize the total production-cum-transportation cost by using: a. Vogel's Approximation Method (VAM) for initial basic feasible solution b. Find the optimal solution using Modified Distribution Method (MODI) method.
Explain how to determine the number of variables and constraints that would be in a transportation problem simplyby knowing the number of sources and the number of destinations.
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(Problem 1) A manager of Drexel Clothing Company has to 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 $450 and a nine-day rate of $325 and B offers a four-day rate of $400 and a seven-day rate for $375. Annual holding costs are 25% of unit price. Four hundred boxes are to be shipped, and each box has a price of $250. The shipping charges are for the entire batch of 400 boxes. Which shipping alternative would you recommend? Explain.
es Mc Graw Hill Boudy A manager must make a decision on shipping. There are two shippers: A and B. Both offer a two-day rate: A for $502, and B for $520. In addition, A offers a three-day rate of $470 and a nine-day rate of $401, and B offers a four-day rate of $455 and a seven-day rate of $436. Annual holding costs are 39 percent of unit price. Four hundred and ten boxes are to be shipped, and each box has a price of $144. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places.) 144Hz Option 2 days 3 days 9 days A Cost O ship seven-day using B ship four-day using B ship two-day using A O ship two-day using B O ship three-day using A Option 2 days 4 days 7 days B Cost Q Search
A retail has 8 stores supplied from 4 suppliers, where each supplier supplies different goods. Delivery from the Supplier is in trucks with a capacity of 40,000 units at a cost of $1100 per load plus $100 per delivery to the store. Inventory costs are $0.2 per unit per year. The Supply Chain Manager is considering whether to use direct shipping or Milk Run delivery for 4 stores for each truck in one shipment a) if annual sales in each store are 1000,000 units, which shipping method provides the lower cost b) if the annual sales in each store are 200,000 units, which shipping method provides the lower cost
I. The Childfair Company has three plants producing child push chairs that are to be shipped to four distribution centers. Plants 1, 2, and 3 produce 12, 17, and 11 shipments per month, respectively. Each distribution center needs to receive 10 shipments per month. The distance from each plant to the respective distributing centers is given to the right: Distance Distribution Center 1 2 4 1 800 1300 400 700 2 3 1100 1400 600 1000 600 1200 800 900 The freight cost for each shipment is $100 plus 50 cents per mile. How much should be shipped from each plant to each of the distribution centers to minimize the total shipping cost? (a) Formulate this problem as a transportation problem by constructing the appropriate parameter table. (b) Draw the network representation of this problem. (c) Obtain an optimal solution.
B & C
Waikato Farm Machinery Ltd (‘WFML’), is a well- established business, with the main base of its operations in Te Rapa, Hamilton. Its business is the importation and distribution of farm machinery such as tractors, loaders, diggers, bulldozers as well as farming equipment such as disc ploughs, rotovators, grain silos including machinery used by dairy farmers in milking sheds. The imported equipment is then sold at wholesale prices to smaller businesses in other centres in the Waikato and King Country regions, that on sell them to farmers. WFML has developed a formidable reputation as a supplier of such goods for at least two reasons. First, it imports machinery and equipment of the highest quality such as John Deere tractors from the United States and International Harvester tractors from Germany. Secondly, it has consistently stood by the goods it sells and efficiently attends to any difficulties experienced by retailers such as the repair of any defects. More importantly it is able to…