Homework Help is Here – Start Your Trial Now!
Business
Operations Management
XYZ Corporation has a one-year contract to supply motors for all refrigerators produced by the IA Corporation. IA manufactures the refrigerators at four locations around the country: Boston, Dallas, Los Angeles, and St. Paul. Plans call for the following number (in thousands) of refrigerators to be produced at cach location: Boston 100

XYZ Corporation has a one-year contract to supply motors for all refrigerators produced by the IA Corporation. IA manufactures the refrigerators at four locations around the country: Boston, Dallas, Los Angeles, and St. Paul. Plans call for the following number (in thousands) of refrigerators to be produced at cach location: Boston 100

Practical Management Science
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
icon
Related questions
Question
100%

Can i get help with those questions please and thank you 

XYZ Corporation has a one-year contract to supply motors for all refrigerators produced by the IA Corporation. IA manufactures the refrigerators at four locations around the country: Boston, Dallas, Los Angeles, and St. Paul. Plans call for the following number (in thousands) of refrigerators to be produced at cach location: Boston 100 Dallas 80 Los Angeles 100 St. Paul 70 XYZ's three plants are capable of producing the motors. The plants and production capacities (in thousands) are as follows: Denver 80 Atlanta 200 Chicago Because of varying production and transportation costs, the profit that XYZ earns on cach lot of 1000 units depends on which plant produced the lot and which destination it was shipped to. The following table gives the accounting department estimates of the profit per unit (shipments will be made in lots of 1000 units): 150 Shipped To Produced At Boston Dallas Los Angeles St. Paul Denver 18 13 10 Atlanta 20 17 13 Chicago 7 11 15 16 With profit maximization as a criterion, XYZ's management wants to determine how many motors should be produced at each plant and how many motors should be shipped from cach plant to each destination. 1. |Find the optimal solution and the maximum profit. 2. In which plant there will be idle capacity and how many units (in thousands)? 3. Do alternative optimal solutions exist? Justify your answer. 4. If they exist, use the stepping stone algorithm and find the second optimal solution. Present your analysis in a graphically neat manner. Use any drawing technique you like – just make sure it looks fairly professional. 5. Produce the third optimal solution by taking a combination of 20% of the first optimal solution and 80% of the second one. Attach all relevant exhibits from Excel's Solver calculations. Use PrintScreen, edit/copy/paste, etc. – whatever you like.
Transcribed Image Text:XYZ Corporation has a one-year contract to supply motors for all refrigerators produced by the IA Corporation. IA manufactures the refrigerators at four locations around the country: Boston, Dallas, Los Angeles, and St. Paul. Plans call for the following number (in thousands) of refrigerators to be produced at cach location: Boston 100 Dallas 80 Los Angeles 100 St. Paul 70 XYZ's three plants are capable of producing the motors. The plants and production capacities (in thousands) are as follows: Denver 80 Atlanta 200 Chicago Because of varying production and transportation costs, the profit that XYZ earns on cach lot of 1000 units depends on which plant produced the lot and which destination it was shipped to. The following table gives the accounting department estimates of the profit per unit (shipments will be made in lots of 1000 units): 150 Shipped To Produced At Boston Dallas Los Angeles St. Paul Denver 18 13 10 Atlanta 20 17 13 Chicago 7 11 15 16 With profit maximization as a criterion, XYZ's management wants to determine how many motors should be produced at each plant and how many motors should be shipped from cach plant to each destination. 1. |Find the optimal solution and the maximum profit. 2. In which plant there will be idle capacity and how many units (in thousands)? 3. Do alternative optimal solutions exist? Justify your answer. 4. If they exist, use the stepping stone algorithm and find the second optimal solution. Present your analysis in a graphically neat manner. Use any drawing technique you like – just make sure it looks fairly professional. 5. Produce the third optimal solution by taking a combination of 20% of the first optimal solution and 80% of the second one. Attach all relevant exhibits from Excel's Solver calculations. Use PrintScreen, edit/copy/paste, etc. – whatever you like.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 15 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Organizational development
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
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
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
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…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS