Tesla Corporation has three different factories (A, B and C) where they make Premium Electric Sedans, which are then shipped to one of three warehouses (J, K, and L) where Tesla does the final paint job and ensures that the car meets all of their standards, after which the Sedans are then shipped to one of three retail stores (X, Y and Z) where customers can purchase the Sedan. The relevant supply, demand, and per-unit shipping cost information are given in the table below. Set-up and solve a transshipment model, while minimizing the total shipping cost for Tesla Corporation. Factory Supply Store Demand From J A 400 X 400 A Y Z B C 500 350 325 400 ΤΟ L $400 $700 $500 $800 $500 $400 C $500 $600 $ 700 BU TO Y Z $600 $400 $ 800 K $300 $600 $ 700 L $200 $400 $ 500 From X J
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- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?Craftwood Furniture Company is a U.S.–based furniture manufacturer that offshored all of its actual manufacturing operations to China about a decade ago. It set up a distribution center in Hong Kong, from which the company ships its items to the United States on container ships. The company learned early on that it could not rely on local Chinese freight forwarders to arrange for sufficient containers for the company’s shipments, so it contracted to purchase containers from a Taiwanese manufacturer and then sell them to shipping companies at the U.S. ports the containers are shipped to. Craftwood needs 715 containers each year. It costs $265 to hold a container at its distribution center, and it costs $6,000 to process and receive an order for the containers. The cost of not having sufficient containers and delaying a shipment is $14,000 per container. Determine the optimal order size, minimum total annual inventory cost, and maximum shortage level.After applying the NWC Rule for the initial tableau of the given transportation model, evaluate the vacant cells. What is the cell which has the most negative evaluation value and what is the cell evaluation value? DESTINATION SOURCE DEMAND X Y N OX-R; 1 OY-S; -1 OX-S; -1 OY-S; -2 P 75 8 12 EI 11 Q 80 5 8 11 R 120 7 10 10 S 50 11 13 14 SUPPLY 100 125 100 325
- K Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of 30 units and is valued at $100 per unit. Inbound shipments from vendor 1 will average 300 units with an average lead time (including ordering delays and transit time) of 4 weeks. Inbound shipments from vendor 2 will average 490 units with an average lead time of 1 week. Ruby-Star operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $39,000. (Enter your response as a whole number.) b. The average aggregate inventory value of the product if Ruby-Star used vendor 2 exclusively is $ 39,500. (Enter your response as a whole number.) c. How would your analysis change if average weekly demand increased to 60 units per week? The average aggregate inventory value of the product if Ruby-Star used vendor 1…Cryolab Inc makes and sells a lawn fertilizer called Hypergro. The company has developed standard costs for one bag of Hypergro as follows: Standard Quantity/Hours Standard Price/Rate Standard Cost per Bag Direct Material 25 pounds ₱ 0.75 ₱18.75 Direct Labor 0.25 hours ₱69.00 ₱17.30 Variable overhead 0.25 hours ₱24.00 ₱ 6.00 Total ₱42.05 The company had no beginning inventories of any kind on January 1. Variable overhead is applied to production on the basis of standard direct labor hours. During January, the following activity was recorded by the company: Production of Fastgro: 23,000 bags Direct materials purchased: 585,000 pounds at a cost of ₱436,250 Direct labor worked: 5,800 hours at a cost of ₱397,300 Variable overhead incurred: ₱140,650 Inventory of direct materials on January 31: 8,000 pounds Compute the variances and indicate whether it is FAVORABLE (F) or UNFAVORABLE (U) in your solution sheet. The raw…Milling companies have loads of requirements for their warehouses 1, 2, and 3 from their clients A, B, and C. Identify which among the stepping stone and MODI distribution methods proves to be cost-saving for the company. (Please provide solutions and explanation)
- Perez POPS POS Katie Perez, owner of Perez POPS, realizes she needs a Point of Sale System (POS) for her main shop but also something that could be used for parties, events etc. Flexibility and portability is important. Choosing the right one will require some research. She has heard of Square but doesn't know anything about it. She would really like to have a couple options to consider. She has asked you, her consultant, to investigate Square and a second POS system appropriate for a small business like hers. Report your findings to Katie with a persuasive business email that has a table detailing the features/pros/cons of both POS options. Finally, offer your recommendation as to which one would be the best solution for her. Business Email should include the following: Use a standard business email template which has - To, From, Date and Subject or Re: Put page numbers on the email if it goes over 1 page Include a link embedded in the email to each POS system you are referencing in…Under which conditions would a plant manager elect to use a fixed-order quantity inventory model as opposed to a fixed-time period inventory model?Analyse eMMC ' s price and storage capacity with its benefits
- Ikagami Retail receives shipments of a particular product from Booker Store and PaulEnterprises. Let x = number of units of product received from Booker Store y = number of units of products received from Paul Enterprises Requirement: a. Write an expression for the total number of units of products received by Ikagami Retail.b. Shipments from Booker Store cost P20 per unit, and shipments from Paul Ent cost P25 per unit. Develop an objective function representing the total cost of shipments to Ikagami.c. Assuming a monthly demand at Ikagami is 5,000 units, develop a constraint that requires 5,000 units to be shipped to Ikagami.d. No more than 4,000 units can be shipped from Booker, and no more than 3,000 from Paul. Develop constraints to model this situation.e. Of course, negative amounts cannot be shipped. Combine the objective function and constraints developed to state a mathematical model for satisfying the demand at Ikagami at minimum cost.Ikagami Retail receives shipments of a particular product from Booker Store and PaulEnterprises. Let x = number of units of product received from Booker Store y = number of units of products received from Paul Enterprises Requirement: a. Write an expression for the total number of units of products received by Ikagami Retail.b. Shipments from Booker Store cost P20 per unit, and shipments from Paul Ent cost P25 per unit. Develop an objective function representing the total cost of shipments to Ikagami.c. Assuming a monthly demand at Ikagami is 5,000 units, develop a constraint that requires5,000 units to be shipped to Ikagami.As a logistics specialist, you are responsible for meeting customer demand. One of your customers places orders for you to supply four products by the end of October. You have limited capacity for raw material and other facilities. You are required to satisfy customer demand by manufacturing the products and/or buying from a supplier. After consulting with the production department, you obtained the following information. Product A Product B Product C Product D Order quantity 2000 3500 1500 2500 Hours required on machine X per unit 2 4 5 3 Hours required on machine Y per unit 4 3 6 2 Raw material in kilos 5 1 4 6 Time needed for Packaging per unit 36 minutes 30 minutes 45 minutes 24 minutes Available monthly hours per month: 8,000 on machine X, 6000 on machine Y, and 3,000 hours for packaging. Purchased items from your supplier are already packaged. Available raw material per month: 5,000 kilos…