The shipping cost per unit from each plant to each distribution center is as follows: Plant Site Detroit Toledo Denver Kansas City St. Louis Boston 5 4 9 10 8 Distribution Centers Atlanta 2 3 7 4 4 Houston 3 4 5 2 3 (a) Develop a mixed-integer programming model that could be used to help Martin-Beck determine which new plant or plants to open in order to satisfy anticipated demand. Solve the model and answer the following questions. What is the optimal cost? $ 104800 What is the optimal set of plants to open? Detroit & Toledo
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- From plants Existing plants Atlanta Tulsa Proposed locations New Orleans Houston Forecast demand To Distribution Centers Los Angeles $8 $4 $5 $4 800 New York $5 $7 $6 $6 1200 Production capacity 600 900 500 500 2000 Unit production cost $6 $5 $4 (anticipated) $3 (anticipated) Williams Auto Top Carriers has decided to open a third plant in one of the two cities - New Orleans and Houston. Based on the information below, which of the new location in combination with the existing plants and distribution centers, yields a lower cost for the firm? Find the total transportation cost, and the optimal product quantities for each routes.Hardgrave Machine Company produces computer components at its factories in Cincinnati, Kansas City, and Pittsburgh. These factories have not been able to keep up with demand for orders at Hardgrave’s four warehouses in Detroit, Houston, New York, and Los Angeles. As a result, the firm has decided to build a new factory to expand its productive capacity. The two sites being considered are Seattle, Washington, and Birmingham, Alabama. Both cities are attractive in terms of labour supply, municipal services, and ease of factory financing. Table 1 presents the production costs and monthly supplies at each of the three existing factories, monthly demands at each of the four warehouses, and estimated production costs at the two proposed factories. Transportation costs from each factory to each warehouse are summarized in Table 2. In addition to this information, Hardgrave estimates that the monthly fixed cost of operating the proposed facility in Seattle would be $400,000. The…Don Levine Corporation is considering adding an additional plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both St. Louis and East St. Louis are being considered. Evaluating only the transportation costs per unit as shown in the tables below, which site is best? FROM EXISTING PLANTS TO DECATUR MINNEAPOLIS CARBONDALE DEMAND Blue Earth $20 $17 $21 250 Ciro 25 27 20 200 Des Moines 22 25 22 350 Capacity 300 200 150 FROM PROPOSED PLANTS TO EAST ST. LOUIS ST. LOUIS Blue Earth $29 $27 Ciro 30 28 Des Moines 30 31 Capacity 150 150
- Williams Auto Top Carriers currently maintains plants in Atlanta and Tulsa to supply auto top carriers to distribution centers in Los Angeles and New York. Because of expanding demand, Williams has decided to open a third plant and has narrowed the choice to one ot two cities – New Orleans and Houston. Table below provides pertinent production and distribution costs as well as plant capacities and distribution demands. Which of the new locations, in combination with the existing plants and distribution centers, yields a lower cost for the firm? From Plants To Distribution centers Normal production Unit production cost Los Angeles New York Existing plants Atlanta Tulsa $8 $4 $5 $7 600 900 $6 $5 Proposed locations New Orleans Houston $5 $4 $6 $6a 500 500 $4 (anticipated) $3 (anticipated) Forecast demand 800 1,200 2,000 a – Indicates distribution cost (shipping, handling, storage) will be $6 per…Ram Roy's firm has developed the following supply,demand, cost, and inven tory data. Allocate production capacityto meet demand at a minimum cost using the transportationmethod. What is the cost? Assume that the initial inven tory has noholding cost in the fi rst period and backorders are not permitted.A chain restaurant wants to open a new location. It is considering three (3) potential sites for the new restaurant. One location is downtown, the other location is in the suburbs and the final location is at the city limits. The downtown location will have monthly fixed costs of $9,500 and labor and materials at $3.75 an order. The suburb location will have a monthly fixed cost of $8,200 and labor and materials at $3.00 an order. The city limits locations will have a monthly fixed cost of $5,500 and labor and materials at $3.85 an order. The average price per order is $15.50 A. The restaurant chain's business analyst is using three different demand levels for each location 1,000 units, 800 units and 500 units. Determine the profitable of each potential location using each of the demand levels. B. At what demand level is each potential location most profitable? C. At what demand level is each potential location least profitable?
- Brewery Ipana Oy has found some potential long-time partners in the restaurant business. To optimize the supply chain, the company is negotiating for contracts that would allow all production in the coming years to be sold to these partners. The contracts aim to shift production to 20 liter barrels of beer, which would become the sole product of Ipana Oy. In case the negotiations are successful, Ipana Oy estimates its typical year would look as follows: the quantity shipped to the customer is 18000 units at a price of 300 €/unit. The gross profit percentage is 40 % and the yearly fixed costs are 1500000 €. (Additional text: The variable cost per unit [€/unit] for products that would be produced in the scenario above is 180 [€/unit].) Question: Calculate the critical sales price in the estimate [€/product].Mick Karra is the manager of MCZ Drilling products which produces a variety of especially valves for oil field equipment. Recent activity in the oil fields has cause demand to increase drastically, and a decision has been made to open a new manufacturing facility. Three locations are being considered, and the size of the facility would not be the same in each location Thus, overtime might be necessary at times. The folowing table gives the total monthly cost (in 1000s) for each possible location under each demand posibility. The probabilities for the demand levels have been determined to be 20% for low demand, 30% for medium demand, and 50% for high demand Demand is Low Demand is medium Demand is High Ardmore, OK 85 110 150 Sweetwater, TX 90 100 120 Lake Charles, LA 110 120 130 (a) Which location would be selected based on the optimistic criterion? (b) which location would be selected based on the pessimistic criterion? (c) which location would be selected based on the…A supply chain manager faced with choosing among four possible locations has assessed each location according to the following criteria, where the weights reflect the importance of the criteria. Location Criteria Weight 1 2 3 4 Raw material availability 0.06 P VG OK VG Infrastructute 0.07 P G VG OK Transportation costs 0.33 G P OK P Labor relations 0.25 VG G P OK Quality of life 0.29 G OK P VG VG = Very good 5 pts; G = Good 4 pts; OK = Acceptable 3 pts ; P = Poor 1 pt. Using this information, determine the best and the worst location. Round your answers to two decimal places. Location Total Points 1 2 3 4 ______ is the best location and _______ is the worst location.
- William Green, vice president of manufacturing for computer products (CPC), and his staff are studying three midwestern alternative locations for a new production facility for producing high-resolution scanners. His staff analysts predict that the scanners will be a growing market over the next ten years, and the analyst's group shares marketing's enthusiasm for planning facilities for producing this new product line. The analysts have developed these estimates for the three locations; In what range of production volume would each of the locations be preferred (at the minimum cost)? Variable cost locations Annual Fixed costs per scanner Cleveland, Ohio $390,000 $34 South Bend, Indiana $360,000 $37 Grand Rapids, Michigan $310,000 $40FlexSteal, marketed as a miracle brush-on sealant and baldness cure, is manufactured at three plants which supply the demand at the four regional centres in the United States. The cost to ship a truckload from each of the plants to the regional centres is shown in the table below. Note that the capacity and the total demand are both measured in truckloads. Plant 1 Plant 2 Plant 3 Total Demand (units) A) $106,850 B) $107,450 C) $108,500 Philadelphia D) $109,750 $89 $120 $95 300 Atlanta $75 $88 $82 1. What is the lowest cost solution for the existing set of plants and regional centres? 300 Dallas $93 $103 $112 300 Los Angeles $115 $93 $98 300 Capacity (units) 400 400 400AlwaysRain 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…