Please see the attachment, thank you! Cheers! 6.5. The Audiofile Company produces boomboxes. However, management has decided to subcontract out the production of the speakers needed for the boomboxes. Three vendors are available to supply the speakers. Their price for Page 232each shipment of 1,000 speakers is shown below.VendorPrice1$22,50022,700322,300Each shipment would go to one of the company's two warehouses. In addition to the price for each shipment, each vendor would charge a shipping cost for which it has its own formula based on the mileage to the warehouse. These formulasand the mileage data are shown below.VendorCharge per Shipment Warehouse 1Warehouse 21$300 + 40¢/mile1,600 miles400 miles$200 + 50¢/mile500 miles600 miles3$500 + 20¢/mile2,000 miles1,000 milesWhenever one of the company's two factories needs a shipment of speakers to assemble into the boomboxes, the company hires a trucker to bring the shipment in from one of the warehouses. The cost per shipment is given next, along with thenumber of shipments needed per month at each factory.Unit Shipping CostFactory 1Factory 2Warehouse 1$200$700Warehouse 2400500Monthly demand10Each vendor is able to supply as many as 10 shipments per month. However, because of shipping limitations, each vendor is only able to send a maximum of six shipments per month to each warehouse. Similarly, each warehouse is only able tosend a maximum of six shipments per month to each factory.Managemenow wants to develop a plan for each monthhow many shipments (if any) to order from each vendor, how many of those shipnshould go to each warehouse, and then how many shipments each warehouse shouldsend to each factory. The objective is to minimize the sum of the purchase costs (including the shipping charge) and the shipping costs from the warehouses to the factories.a. Draw a network that depicts the company's supply network. Identify the supply nodes, transshipment nodes, and demand nodes in this network.

Small Introduction about Shipments A shipment is defined as all of the items that are being shipped…

Answered: a. Draw a network that depicts the…

a. Draw a network that depicts the company's supply network. Identify the supply nodes, transshipment nodes, and demand nodes in this network.

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter2: The Purchasing Process

Section: Chapter Questions

Problem 1GPE

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