Sports of All Sorts produces, distributes, and sells high-quality skateboards. Its supply chain consists of three factories (located in Detroit, Los Angeles, and Austin) that produce skateboards. The Detroit and Los Ang facilities can produce 350 skateboards per week, but the Austin plant is larger and can produce up to 700 skateboards per week. Skateboards must be shipped from the factories to one of four distribution centers, o DCs (located in Iowa, Maryland, Idaho, and Arkansas). Each distribution center can process (repackage, mark for sale, and ship) at most 500 skateboards per week. Shipping Costs ($ per skateboard) Factory/DCs Detroit Los Angeles Austin 2 3 Iowa 25.00 35.00 40.00 Maryland 25.00 45.00 40.00 Idaho 35.00 35.00 42.50 Arkansas 40.00 42.50 32.50 Skateboards are then shipped from the distribution centers to retailers. Sports of All Sorts supplies three major U.S. retailers: Just Sports, Sports 'N Stuff, and The Sports Dude. The weekly demands are 200 skatebo at Just Sports, 500 skateboards at Sports 'N Stuff, and 650 skateboards at The Sports Dude. The following tables display the per-unit costs for shipping skateboards between the factories and DCs and for shipping between the DCs and the retailers.

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10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
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Sports of All Sorts produces, distributes, and sells high-quality skateboards. Its supply chain consists of three factories (located in Detroit, Los Angeles, and Austin) that produce skateboards. The Detroit and Los Angele
facilities can produce 350 skateboards per week, but the Austin plant is larger and can produce up to 700 skateboards per week. Skateboards must be shipped from the factories to one of four distribution centers, or
DCs (located in Iowa, Maryland, Idaho, and Arkansas). Each distribution center can process (repackage, mark for sale, and ship) at most 500 skateboards per week.
Factory/DCs
Detroit
Los Angeles
Min
Austin
s.t.
Retailers/DCs
Detroit Production
Los Angeles Production
Austin Production
Iowa Shipments
Maryland Shipments
Idaho Shipments
Arkansas Shipments
Iowa Processing
Maryland Processing
Idaho Processing
12
Arkansas Processing
Just Sports Demand
Sports Stuff Demand
Skateboards are then shipped from the distribution centers to retailers. Sports of All Sorts supplies three major U.S. retailers: Just Sports, Sports 'N Stuff, and The Sports Dude. The weekly demands are 200 skateboard
at Just Sports, 500 skateboards at Sports 'N Stuff, and 650 skateboards at The Sports Dude. The following tables display the per-unit costs for shipping skateboards between the factories and DCs and for shipping
between the DCs and the retailers.
3
X14 X15 X16X17
X24 X25 X25 X27
X34 35 36 37
X48 X58 X68 X78
Iowa
X49 X59 X69 X79
X410 X510 X610 *710]
25.00
Need Help?
35.00
Just Sports
Sports 'N Stuff
The Sports Dude
(a) Draw the network representation for this problem. (Submit a file with a maximum size of 1 MB.)
Choose File No file chosen
This answer has not been graded yet.
40.00
Read It
8
9
=
Shipping Costs ($ per skateboard)
6
1
Iowa
30.00
Maryland
27.50
25.00
30.00
45.00
40.00
(b) Build a model to minimize the transportation cost of a logistics system that will deliver skateboards from the factories to the distribution centers and from the distribution centers to the retailers. (Let Detroit be
node 1, Los Angeles be node 2, Austin be node 3, Iowa be node 4, Maryland be node 5, Idaho be node 6, Arkansas be node 7, Just Sports be node 8, Sports Stuff be node 9, and Sports Dude be node 10. Express
your answers in the form x,, where x, represents the number of units shipped from node i to node j.)
Idaho
35.00
32.50
35.00
40.00
42.50
Shipping Costs ($ per skateboard)
6
Maryland 5 Idaho
20.00
35.00
What is the minimum attainable transportation cost (in dollars)?
$
Arkansas
40.00
40.00
42.50
32.50
32.50
Arkansas
Sports Dude Demand
x 20 for all i and j.
What is the optimal production strategy and shipping pattern for Sports of All Sorts? Enter the number of units shipped where x,, represents the number of units shipped from node i to node j.
27.50
25.00
7
42.50
(c) Sports of All Sorts is considering expansion of the Iowa DC capacity to 800 units per week. The annual amortized cost of expansion is $40,000. Should the company expand the Iowa DC capacity so that it can
process 800 skateboards per week? (Assume 50 operating weeks per year.)
The cost of the optimal solution associated with this increased capacity at the Iowa distribution center is $
50x ($[
- $
= $
per year. The $40,000 cost of expansion --Select---
per week. Therefore, the potential savings over 50 weeks is
✓the potential savings, so Sports of All Sorts ---Select--- expand.
Transcribed Image Text:Sports of All Sorts produces, distributes, and sells high-quality skateboards. Its supply chain consists of three factories (located in Detroit, Los Angeles, and Austin) that produce skateboards. The Detroit and Los Angele facilities can produce 350 skateboards per week, but the Austin plant is larger and can produce up to 700 skateboards per week. Skateboards must be shipped from the factories to one of four distribution centers, or DCs (located in Iowa, Maryland, Idaho, and Arkansas). Each distribution center can process (repackage, mark for sale, and ship) at most 500 skateboards per week. Factory/DCs Detroit Los Angeles Min Austin s.t. Retailers/DCs Detroit Production Los Angeles Production Austin Production Iowa Shipments Maryland Shipments Idaho Shipments Arkansas Shipments Iowa Processing Maryland Processing Idaho Processing 12 Arkansas Processing Just Sports Demand Sports Stuff Demand Skateboards are then shipped from the distribution centers to retailers. Sports of All Sorts supplies three major U.S. retailers: Just Sports, Sports 'N Stuff, and The Sports Dude. The weekly demands are 200 skateboard at Just Sports, 500 skateboards at Sports 'N Stuff, and 650 skateboards at The Sports Dude. The following tables display the per-unit costs for shipping skateboards between the factories and DCs and for shipping between the DCs and the retailers. 3 X14 X15 X16X17 X24 X25 X25 X27 X34 35 36 37 X48 X58 X68 X78 Iowa X49 X59 X69 X79 X410 X510 X610 *710] 25.00 Need Help? 35.00 Just Sports Sports 'N Stuff The Sports Dude (a) Draw the network representation for this problem. (Submit a file with a maximum size of 1 MB.) Choose File No file chosen This answer has not been graded yet. 40.00 Read It 8 9 = Shipping Costs ($ per skateboard) 6 1 Iowa 30.00 Maryland 27.50 25.00 30.00 45.00 40.00 (b) Build a model to minimize the transportation cost of a logistics system that will deliver skateboards from the factories to the distribution centers and from the distribution centers to the retailers. (Let Detroit be node 1, Los Angeles be node 2, Austin be node 3, Iowa be node 4, Maryland be node 5, Idaho be node 6, Arkansas be node 7, Just Sports be node 8, Sports Stuff be node 9, and Sports Dude be node 10. Express your answers in the form x,, where x, represents the number of units shipped from node i to node j.) Idaho 35.00 32.50 35.00 40.00 42.50 Shipping Costs ($ per skateboard) 6 Maryland 5 Idaho 20.00 35.00 What is the minimum attainable transportation cost (in dollars)? $ Arkansas 40.00 40.00 42.50 32.50 32.50 Arkansas Sports Dude Demand x 20 for all i and j. What is the optimal production strategy and shipping pattern for Sports of All Sorts? Enter the number of units shipped where x,, represents the number of units shipped from node i to node j. 27.50 25.00 7 42.50 (c) Sports of All Sorts is considering expansion of the Iowa DC capacity to 800 units per week. The annual amortized cost of expansion is $40,000. Should the company expand the Iowa DC capacity so that it can process 800 skateboards per week? (Assume 50 operating weeks per year.) The cost of the optimal solution associated with this increased capacity at the Iowa distribution center is $ 50x ($[ - $ = $ per year. The $40,000 cost of expansion --Select--- per week. Therefore, the potential savings over 50 weeks is ✓the potential savings, so Sports of All Sorts ---Select--- expand.
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