Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 13, Problem 18P
Summary Introduction
Case Summary: To get maximum profit during choose an ideal plant location; shipping cost is the huge expense in a business organization. Before calculating the shipping cost, the cost should be reduced to progress of business. Several factors like package dimensions, weight, and shipping destination must be considered.
Interpretation: The shipping
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Using the “Transportation Matrix”, solve the transportation problem below using the Northwest Corner and Intuitive Lowest-Cost methods. Use the Northwest Corner method result as the starting point and solve for the optimal solution using the Stepping-Stone method.
Show all steps and all calculations when doing the Stepping-Stone method.
Plants
Supply
Destination
Demand
Kansas City
35
Chicago
30
Omaha
50
St louis
65
Des Moines
50
Cincinnati
40
Total
135
Tons
Total
135
Tons
transport cost form Plants to Destinations ($/Ton)
Plants
Chicago
St louis
Cincinnati
Kansas city
$ 4.00
$ 3.00
$ 3.00
Omaha
$ 6.00
$ 7.00
$ 6.00
Des Moines
$ 8.00
$ 2.00
$ 5.00
A. Northwest Corner method
B. Intuitive Lowest-Cost method
C. Stepping-Stone method
The Thor International Company operates four factories that ship products to five warehouses. The shipping costs, requirements, and capacities are shown in Figure. Use the transportation method to find the shipping schedule that minimizes shipping cost.
Transportation helps people in those various locations to trade and conduct business with one another by movingpeople and things to different neighborhoods, cities, states, and countries.
FIVE (5) factors that Food Lovers should consider when selecting mode of shipment, carrier and routing.
Chapter 13 Solutions
Operations Management: Processes and Supply Chains (11th Edition)
Ch. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 1PCh. 13 - Prob. 2PCh. 13 - Prob. 3PCh. 13 - Prob. 4PCh. 13 - Prob. 5PCh. 13 - Prob. 6PCh. 13 - Prob. 7P
Ch. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Prob. 10PCh. 13 - Prob. 11PCh. 13 - Prob. 12PCh. 13 - Prob. 13PCh. 13 - Prob. 14PCh. 13 - Prob. 15PCh. 13 - Prob. 16PCh. 13 - Prob. 17PCh. 13 - Prob. 18PCh. 13 - Prob. 19PCh. 13 - Prob. 20PCh. 13 - Prob. 21PCh. 13 - Prob. 22PCh. 13 - Prob. 23PCh. 13 - Prob. 24PCh. 13 - Prob. 1AMECh. 13 - Prob. 2AMECh. 13 - Prob. 3AMECh. 13 - Prob. 4AMECh. 13 - Prob. 1VCCh. 13 - Prob. 2VCCh. 13 - Prob. 3VC
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- Company Miraitowa is manufacturing a range of bulk novelty products to be sold at the Olympics in Tokyo. Company Miraitowa is located in Beijing China. Examples of the products include key rings, caps, socks and vacuum insulated water bottles to name a few. Answer the following questions related to Company Miraitowa. List the five main costs that are included in the Total Logistics Costs of Company Miraitowa.arrow_forwardExplain logistics distribution in your own words and why we use itarrow_forwardThe Thor International Company operates four factories that ship products to five warehouses. The shipping costs, requirements, and capacities are shown in the tableau below. Use the transportation method to find the shipping schedule that minimizes shipping cost. Shipping Cost per Case to each Warehouse W2 Factory Сарacity W1 W3 W4 W5 Dummy $5 $5 $4 $7 $0 F1 60,000 $4 $5 $4 $6 $8 $0 F2 80,000 $6 $5 $7 $4 $5 $0 F3 80,000 $5 $9 $6 $7 $4 $0 F4 40,000 Demand 45,000 40,000 30,000 35,000 50,000 60,000 260,000 The minimum shipping cost is S | (Enter your response as a whole number.)arrow_forward
- The primary expense criteria utilized when studying a logistics network using a transportation model?arrow_forwardCompany A has hired you to evaluate its shipping costs. The following table shows present demand, capacity and freight costs between each factory and each warehouse. Find the shipping pattern with the lowest cost. Use the northwest-corner method. What is its total cost? Use the intuitive lowest-cost approach. What is its total cost? Based on your findings in question above, comments the effective approach in conducting the transportation method. Briefly explain the different, limitation, advantages, disadvantages and feasibility of each approacharrow_forwardOperations management Explain the steps in the intuitive lowest cost method of the transportation model in logistics ?arrow_forward
- The main cost criterion used when a transportation model is used for analyzing a logistics network.arrow_forwardDescribe the reverse logistics system of a beverage company, including the movement of goodsand the flow of payment. What steps does the company take to reduce their costs?arrow_forwardTransportation cost mainly depends on which of the following factors? (a) Distance(b) Weight of merchandise(c) Time required for transportation(d) All of the abovearrow_forward
- explain any FIVE factors that Food Lovers should consider when selecting the mode of shipment, carrier, and routing.arrow_forwardA company has a contract to move 700 units of a product per day between three plants A, B, and C, and three destinations, X, Y, and Z. Cost (in hundreds of pesos) and volume information are given below. Compute the optimal transportation cost.arrow_forwardDiscuss five benefits that come from using the principles that are applied in Network Logistics by DELL.arrow_forward
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