Please see the attachment, thank you! Cheers! ### 6.5. The Audiofile Company Case Study: Optimizing Speaker Shipments for Boombox ProductionThe Audiofile Company produces boomboxes and has decided to subcontract the production of speakers. Three vendors offer pricing for shipments of 1,000 speakers as follows:#### Vendor Pricing for Speakers- **Vendor 1**: $22,500- **Vendor 2**: $22,700- **Vendor 3**: $22,300Shipments are directed to one of the company's two warehouses, with additional vendor-specific shipping costs based on mileage.#### Vendor Shipping Charges and Distances- **Vendor 1**: $300 + 40¢/mile - Warehouse 1: 1,600 miles - Warehouse 2: 400 miles- **Vendor 2**: $200 + 50¢/mile - Warehouse 1: 500 miles - Warehouse 2: 600 miles- **Vendor 3**: $500 + 20¢/mile - Warehouse 1: 2,000 miles - Warehouse 2: 1,000 miles### Factory Shipment Needs and CostsFor assembly into boomboxes, shipments are trucked from warehouses to one of the two factories. The costs are as follows:#### Unit Shipping Cost per Factory- **Warehouse 1 to Factory 1**: $200- **Warehouse 1 to Factory 2**: $700- **Warehouse 2 to Factory 1**: $400- **Warehouse 2 to Factory 2**: $500#### Monthly Demand- **Factory 1**: 10 shipments- **Factory 2**: 6 shipments### Vendor and Warehouse Shipment Constraints- Each vendor can supply up to 10 shipments/month.- Maximum of 6 shipments/month per vendor to each warehouse.- Each warehouse can send a maximum of 6 shipments/month to each factory.### Management's ObjectiveDevelop a monthly shipment plan to minimize total costs, including speaker purchasing, vendor shipping charges, and warehouse-to-factory shipping. #### Taska. Draw and analyze a network representing the company’s supply chain. Identify supply, transshipment, and demand nodes.

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.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Please see the attachment, thank you! Cheers!

### 6.5. The Audiofile Company Case Study: Optimizing Speaker Shipments for Boombox Production

The Audiofile Company produces boomboxes and has decided to subcontract the production of speakers. Three vendors offer pricing for shipments of 1,000 speakers as follows:

#### Vendor Pricing for Speakers
- **Vendor 1**: $22,500
- **Vendor 2**: $22,700
- **Vendor 3**: $22,300

Shipments are directed to one of the company's two warehouses, with additional vendor-specific shipping costs based on mileage.

#### Vendor Shipping Charges and Distances
- **Vendor 1**: $300 + 40¢/mile
- Warehouse 1: 1,600 miles
- Warehouse 2: 400 miles
- **Vendor 2**: $200 + 50¢/mile
- Warehouse 1: 500 miles
- Warehouse 2: 600 miles
- **Vendor 3**: $500 + 20¢/mile
- Warehouse 1: 2,000 miles
- Warehouse 2: 1,000 miles

### Factory Shipment Needs and Costs
For assembly into boomboxes, shipments are trucked from warehouses to one of the two factories. The costs are as follows:

#### Unit Shipping Cost per Factory
- **Warehouse 1 to Factory 1**: $200
- **Warehouse 1 to Factory 2**: $700
- **Warehouse 2 to Factory 1**: $400
- **Warehouse 2 to Factory 2**: $500

#### Monthly Demand
- **Factory 1**: 10 shipments
- **Factory 2**: 6 shipments

### Vendor and Warehouse Shipment Constraints
- Each vendor can supply up to 10 shipments/month.
- Maximum of 6 shipments/month per vendor to each warehouse.
- Each warehouse can send a maximum of 6 shipments/month to each factory.

### Management's Objective
Develop a monthly shipment plan to minimize total costs, including speaker purchasing, vendor shipping charges, and warehouse-to-factory shipping.

#### Task
a. Draw and analyze a network representing the company’s supply chain. Identify supply, transshipment, and demand nodes.

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