Homework Help is Here – Start Your Trial Now!
Business
Operations Management
REQUIRED: a) Draw a network that depicts the company's supply network. Identify the supply nodes, transshipment nodes, and demand nodes in this network. b) Formulate an optimization model to solve this problem. (Set-up only the objective function and the Constrains do not solve) Question The Audio Company produces boombows However, management has decided to subcontract out the production of the speakers needed for the boombows. The vendors are available to supply the speakers. Their price for each shipment of 1,000 speakers 1 2 > $22.700 In addition, each vendor would change a shipping cost Each shipment would go to one of the company's two warehouses. Each vendor has its own formula for calculating this shipping cost based on the mileage to the warehouse. These formulas and the mileage 1 Charge per shipment $300+0.40m

REQUIRED: a) Draw a network that depicts the company's supply network. Identify the supply nodes, transshipment nodes, and demand nodes in this network. b) Formulate an optimization model to solve this problem. (Set-up only the objective function and the Constrains do not solve) Question The Audio Company produces boombows However, management has decided to subcontract out the production of the speakers needed for the boombows. The vendors are available to supply the speakers. Their price for each shipment of 1,000 speakers 1 2 > $22.700 In addition, each vendor would change a shipping cost Each shipment would go to one of the company's two warehouses. Each vendor has its own formula for calculating this shipping cost based on the mileage to the warehouse. These formulas and the mileage 1 Charge per shipment $300+0.40m

Practical Management Science
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...
See similar textbooks
icon
Related questions
Question
REQUIRED: (a) Draw a network that depicts the company's supply network. Identify the supply nodes, transshipment nodes, and demand nodes in this network. (b) Formulate an optimization model to solve this problem. (Set-up only the objective function and the Constrains do not solve) 1 Question 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 each shipment of 1,000 speakers is shown below Vendor 1 2 3 In addition, each vendor would charge a shipping cost. Each shipment would go to one of the company's two warehouses. Each vendor has its own formula for calculating this shipping cost based on the mileage to the warehouse. These formulas and the mileage data are shown below Vendor 1 2 3 Vendor 2 3 Warehouse 1 Price $22,500 $22,700 $22,300 Charge per shipment $300+0.40/m $200+050/mle $500+0.20/mile 1600 miles 500 miles 2,000 miles Warehouse 1 Warehouse 2 Monthly demand Warehouse 2 400 miles 600 miles 1,000 m Whenever 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 in the next column, along with the number of shipments needed per month at each factory. Unit Shipping Cost Factory 1 $200 $400 10 Each vendor is able to supply as many as 10 shipments per month. However, because of shipping limitations, each vendor is able to send a maximum of only & shipments per month to each warehouse Similarly, each warehouse is able to send a maximum of only shipments per month to each factory Management now wants to develop a plan for each month regarding how many shipments if any) to order from each vandor, how many of those shipments should go to each warehouse, and then how many shipments each warehouse should send 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. Unit Shipping Cost Factory 2 $700 $500 4 Draw a network that depicts the company's supply network Identify the supply nodes. transhipment nodes, and demand nodes in this network (b) Formulate an optimization model to solve this problem (Set-up only the objective function and the Constrains do not solve)
Transcribed Image Text:REQUIRED: (a) Draw a network that depicts the company's supply network. Identify the supply nodes, transshipment nodes, and demand nodes in this network. (b) Formulate an optimization model to solve this problem. (Set-up only the objective function and the Constrains do not solve) 1 Question 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 each shipment of 1,000 speakers is shown below Vendor 1 2 3 In addition, each vendor would charge a shipping cost. Each shipment would go to one of the company's two warehouses. Each vendor has its own formula for calculating this shipping cost based on the mileage to the warehouse. These formulas and the mileage data are shown below Vendor 1 2 3 Vendor 2 3 Warehouse 1 Price $22,500 $22,700 $22,300 Charge per shipment $300+0.40/m $200+050/mle $500+0.20/mile 1600 miles 500 miles 2,000 miles Warehouse 1 Warehouse 2 Monthly demand Warehouse 2 400 miles 600 miles 1,000 m Whenever 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 in the next column, along with the number of shipments needed per month at each factory. Unit Shipping Cost Factory 1 $200 $400 10 Each vendor is able to supply as many as 10 shipments per month. However, because of shipping limitations, each vendor is able to send a maximum of only & shipments per month to each warehouse Similarly, each warehouse is able to send a maximum of only shipments per month to each factory Management now wants to develop a plan for each month regarding how many shipments if any) to order from each vandor, how many of those shipments should go to each warehouse, and then how many shipments each warehouse should send 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. Unit Shipping Cost Factory 2 $700 $500 4 Draw a network that depicts the company's supply network Identify the supply nodes. transhipment nodes, and demand nodes in this network (b) Formulate an optimization model to solve this problem (Set-up only the objective function and the Constrains do not solve)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS