The Martin-Beck Company operates a plant in St. Louis with an annual capacity of 30,000 units. Product is shipped to regionaldistribution centers located in Boston, Atlanta, and Houston. Because of an anticipated increase in demand, Martin-Beck plans toincrease capacity by constructing a new plant in one or more of the following cities: Detroit, Toledo, Denver, or Kansas City. Theestimated annual fixed cost and the annual capacity for the four proposed plants are as follows:Proposed PlantDetroitToledoDenverKansas CityDistribution CenterBostonAnnual Fixed CostAtlantaThe company's long-range planning group developed forecasts of the anticipated annual demand at the distribution centers asfollows:Houston$175,000$300,000$375,000$500,000Annual Capacity20,00030,00040,00010,000Annual Demand20,00030,00020,000 The shipping cost per unit from each plant to each distribution center is as follows:Plant SiteDetroitToledoDenverKansas CitySt. LouisBoston549108Distribution CentersAtlanta23744HoustonWhat is the optimal set of plants to open?34523(a) Develop a mixed-integer programming model that could be used to help Martin-Beck determine which new plant or plants toopen in order to satisfy anticipated demand. Solve the model and answer the following questions. What is the optimal cost?Detroit & Toledo(b) Using equation 12.1, find a second-best solution. What is the optimal set of plants to open?DenverWhat is the increase in cost versus the best solution from part (a)?

Find the Given details below: Given details:Plant siteDistribution…

Answered: The Martin-Beck Company operates a…

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

Similar questions

A railroad is being proposed by the government to join two neighboring cities. The railroad will significantly reduce the travel time between the two cities. The only concern is that to set up the infrastructure for the railroad, approximately ten square miles of forests will need to be cleared. The forest is known for its flora and fauna and regularly attracts people from all over the country. Any construction activity in the forest would deprive future generations of this rich heritage. Thus the plan for the proposed railroad has been shelved because of the idea that the environment should be protected so that future generations may live in it, and have the choices as individuals have today. The above is an example of: Group of answer choices a. an aesthetic argument b. incentives c. an environmental impact statement d. externalities e. social fairness
Read the scenarios below to answer the following question : After operating from the founder’s garage for three years, the team at Yebo Sauce, a condiment manufacturing business, that is dealing primarily in table sauces, has decided that it is time to expand their operation to the rest of Gauteng province. The implication of this expansion is that they need to introduce wide-ranging supply chain management processes within the business. As the newly appointed head for the logistics part of the operation, your primary focus is to align all employees and managers to the key concepts, processes and implications of adopting the necessary supply chain processes. Sauces & Spices Revenue in the Sauces & Condiments segment amounts to US$486.40m in 2022. The market is expected to grow annually by 3.49% (CAGR 2022-2027). In global comparison, most revenue is generated in China (US$38.24bn in 2022). In relation to total population figures, per person revenues of US$8.01 are generated…
The Candle Company plans to open a new retail store in Portland, Maine. The store will sell specialty candles for an average of $10 each. The average variable costs per candle are as follows: Wax $4 Other additives $2 Base $1 The company is negotiating its lease for the new location. The landlord has offered two leasing options: Option A) a lease of $2,500 per month; or Option B) a monthly lease cost of $2,000 plus 10% of the company's monthly sales revenue. The lease option that is more attractive for the company under its current sales expectations is option B, the fixed lease payment plus sales based commission because it results in the lowest total lease costs The indifference point is The company expects to sell approximately 400 candles per month. Requirement 2. At what level of sales (in units) would the company be indifferent between the two lease options? Show your proof. candles. Begin by selecting the equation to determine the indifference point. (Abbreviations used" FC =…
The capacity of the Internet to accommodate two distinct types of application support services remains uncertain. These services exhibit variations in several significant aspects?
A flood control reservoir project and channel improvement project are proposed for reducing flood damages along a stream in an urban area. Estimated costs are as follows: Dam and reservoir project Channel improvement project Initial investment $1,500,000 $1,200,000 Annual maintenance $10,000/yr $5,000/yr Hydrologic, hydraulic and economic studies have been conducted to develop the following relationships for the river reach and flood plain: (a) annual exceedance probability versus peak discharge with and without the reservoir, (b) discharge versus stage with and without the channel improvement, and (c) stage versus damage Annual Peak discharge Stage (ft) exceedance (cfs) probability Without With Discharge reservoir reservoir (cfs) Without With Stage Damage project project (ft) million) 0.50 3,000 2,700 0 0 0 9 0.0 0.20 5,400 0.10 7,600 4,200 3,500 5,000 10. 7 10 0.2 10,000 15° 11 15 1.1 0.05 10,400 5,500 15,000 20 14 20 2.2 0.02 0.01 19,000 0.005 24,000 20,000 15,000 8,600 20,000 23 17…
a company's business model was to operate through its facilities- Vancouver, Calgary, Winnipeg, Toronto(ontario), ottawa, Montreal and Halifax. Supply comes from South America, southeast Asia, and Florida. the company was shipping first to Toronto and then to each facility at a total cost of $23095.5 per week. The company is considering the possibility of opening a logistics facility in Miami. Toronto and Vancouver were already available as transshipment centres. What would be the cost savings if Miami centre was opened and what would be the optimal shipment plan?
Mazoon, a four-wheeler company, is a leading company in Shalala manufacturing chassis of bus/lorry, in 300 acres of land with 200 employees. The annual production capacity of the plant is 40,000 chassis. The market research department projected its future demand to be 1.5 times the present capacity of the plant. So, the company took a decision to set up another plant in Nizwa with a capacity of 100,000 chassis. It is in the process of procurement of the required land of 800 acres. The projected number of employees in the new factory would be 1,000. The productivity of any company mainly depends on the type of layout that is used to carry out the activities to produce the product. So, the industrial engineering department of the exiting company is given the task of design the right type of layout for the new company. All the sections of the automobile company will not have the same type of layout. The final assembly of chassis is done on a powered conveyer belt. This part of the company…
The Acme Company operates four factories that ship products to five warehouses. The shipping costs, requirements capacities, and optimal allocations are shown in Figure. What is the total cost of the optimal solution?
A council has a brown-field sites designated for social housing. After allowing for roads and parks it has an area of 150000 m² for social housing. The housing association intends to build a mixture of flats, two-bedroom houses, three-bedroom houses, and shops (which include a living space) on this site. The housing association wishes to maximise the number of people that can be housed but has strict housing requirements: • there must be at least twice as many two-bedroom houses as three-bedroom houses; • at least 10% of the total housing units excluding shops (i.e. flats and houses) must be flats; • buildings containing the flats (i.e a "block") must have two storeys and every flat must have the same floor space; • shops must be provided at a rate of at least one per 1500 inhabitants. The average number of inhabitants per housing unit and the ground floor area of each are given in the following table. Housing type Flat Two-bedroom house Three-bedroom house Shop Average number of…
An auto compant currently maintains plants in Cincinnati and Tulsa to supply two distributioncenters in Boston and Phoenix. The production and distribution costs, distribution demands aswell as facility capacities are given in the table attached Using the northwest-corner method, determine the initial allocated quantity for eachshipping route as well as the overall cost.

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

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

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

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…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS