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

AlwaysRain Irrigation, Inc. would like to determine capacity requirements for the next four years. Currently, two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four years as follows: YEARLY DEMAND 1 (IN 000s) 2 (IN 000s) 3 (IN 000s) 4 (IN 000s) Plastic 90 33 42 54 51 Plastic 180 14 15 18 17 Plastic 360 51 54 61 68 Bronze 90 6 5 14 Bronze 180 4 12 Bronze 360 10 12 14 17 Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require four operators and can produce up to 15,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires five operators and can produce up to 240,000 sprinklers. Three bronze machines and only one injection molding machine are…
AlwaysRain Irrigation, Inc. would like to determine capacity requirements for the next four years. Currently, two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four years as follows: YEARLY DEMAND 1 (IN 000s) 2 (IN 000s) 3 (IN 000s) 4 (IN 000s) 54 Plastic 90 32 43 55 Plastic 180 14 18 15 18 Plastic 360 52 55 62 68 Bronze 90 Bronze 180 9. 10 7. 7. Bronze 360 14 14 16 Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require three operators and can produce up to 11,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires three operators and can produce up to 300,000 sprinklers. Three bronze machines and only one injection molding machine are…
AlwaysRain Irrigation, Inc. would like to determine capacity requirements for the next four years. Currently, two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four years as follows: YEARLY DEMAND 1 (IN 000s) 2 (IN 000s) 3 (IN 000s) 4 (IN 000s) Plastic 90 32 42 54 60 Plastic 180 16 14 15 16 Plastic 360 45 54 69 68 Bronze 90 5 7 10 15 Bronze 180 2 2 5 10 Bronze 360 12 13 13 20 Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require four operators and can produce up to 16,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires five operators and can produce up to 260,000…
Niue Vanilla has had two successive years in which the Vanilla bean harvest has stretched the firm’s capacity within their drying sheds. Pita, the manger for the drying operation must now make a decision on capacity for next year. Estimated profits under each of the three possible states of nature are as shown in the table below, along with 3 possible alternatives he is considering: Do Nothing, Expand the Drying Shed operation, or Subcontract to a local farmer group who can do some of the drying. Suppose after a certain amount of discussion, Pita is able to subjectively assess the probabilities of low, medium and high demand: P(low) = 0.2, P(Medium) = 0.35 and P(high) = 0.45 Determine the expected profit of each alternative. Which alternative is best? Why? Analyse the problem using a decision tree. Show the expected profit of each alternative on the tree.
Niue Vanilla has had two successive years in which the Vanilla bean harvest has stretched the firm’s capacity within their drying sheds. Pita, the manger for the drying operation must now make a decision on capacity for next year. Estimated profits under each of the three possible states of nature are as shown in the table below, along with 3 possible alternatives he is considering: Do Nothing, Expand the Drying Shed operation, or Subcontract to a local farmer group who can do some of the drying Laplace Criterion? Minimax Regret?
Niue Vanilla has had two successive years in which the Vanilla bean harvest has stretched the firm’s capacity within their drying sheds. Pita, the manger for the drying operation must now make a decision on capacity for next year. Estimated profits under each of the three possible states of nature are as shown in the table below, along with 3 possible alternatives he is considering: Do Nothing, Expand the Drying Shed operation, or Subcontract to a local farmer group who can do some of the drying. Suppose after a certain amount of discussion, Pita is able to subjectively assess the probabilities of low, medium and high demand: P(low) = 0.2, P(Medium) = 0.35 and P(high) = 0.45 Compute the expected value of perfect information. How could Pita use this knowledge?
Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) are forecast as follows: Capacity Source Month 1 Month 2 Month 3 Month 4 Labor Regular time 245 265 300 300 Overtime 15 24 26 22 Subcontract 14 15 13 15 Demand 260 304 331 305 The cost of producing each dialysis unit is $875 on regular time, $1310 on overtime, and $1500 on a subcontract. Inventory carrying cost is $100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Minimizing cost using the transportation method, the optimal cost is ???$ (enter your response as a whole number).
Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) are forecast as follows: Capacity Source Month 1 Month 2 245 275 F1111 15 24 14 15 260 314 Labor Regular time Overtime Subcontract Demand Month 3 280 26 18 316 Month 4 300 24 15 301 The cost of producing each dialysis unit is $875 on regular time, $1,310 on overtime, and $1,500 on a subcontract. Inventory carrying cost is $100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Minimizing cost using the transportation method, the optimal cost is $ (enter your response as a whole number).
Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) are forecast as follows: Capacity Source Labor Regular time Overtime Subcontract Demand Month 1 225 15 14 240 Month 2 275 28 17 320 Month 3 280 26 13 311 Month 4 300 24 15 301 The cost of producing each dialysis unit is $875 on regular time, $1,310 on overtime, and $1,500 on a subcontract. Inventory carrying cost is $100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Minimizing cost using the transportation method, the optimal cost is $ (enter your response as a whole number).
Jerusalem Medical Ltd., an Israeli producer of port-able kidney dialysis units and other medical products, develops a 4- month aggregate plan. Demand and capacity ( in units) are forecast as follows: CAPACITY SOURCE MONTH 1 MONTH 2 MONTH 3 MONTH 4 Labor Regular time 235 255 290 300 Overtime 20 24 26 24 Subcontract 12 15 15 17 Demand 255 294 321 301 The cost of producing each dialysis unit is $ 985 on regular time, $ 1,310 on overtime, and $ 1,500 on a subcontract. Inventory carrying cost is $ 100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Set up a production plan that minimizes cost using the transportationmethod.
AlwaysRain Irrigation, Inc. would like to determine capacity requirements for the next four years. Currently, two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90- degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four years as follows: Plastic 90 Plastic 180 Plastic 360 Bronze 90 Bronze 180 Bronze 360 1 (IN 0005) 33 14 51 6 4 10 YEARLY DEMAND 2 (IN 000s) 3 (IN 000s) 4 (IN 0005) 42 15 54 6 4 Plastic Demand for plastic sprinklers Percentage of capacity used Machine requirements Labor requirements Bronze Demand for bronze sprinklers Percentage of capacity used Machine requirements Labor requirements 12 54 18 61 5 6 14 Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require four operators and can produce up to 15,000 sprinklers. The plastic…
Jerusalem Medical Ltd., an Israeli producer of port-able kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) areforecast as follows:CAPACITYSOURCE MONTH 1 MONTH 2 MONTH 3 MONTH 4LaborRegular time 235 255 290 300Overtime 20 24 26 24Subcontract 12 15 15 17Demand 255 294 321 301The cost of producing each dialysis unit is $985 on regular time, $1,310 on overtime, and $1,500 on a subcontract. Inventory car-rying cost is $100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Set up a production plan that minimizes cost using the transpor-tation method.

SEE MORE QUESTIONS

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