Operations Management: Processes and Supply Chains (11th Edition)
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 schedule that minimizes shipping cost by using transportation method

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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.
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