Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
12th Edition
ISBN: 9780134742205
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 13, Problem 20P
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 total distribution cost for each alternatives
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The King Corn Company processes food for sale in discount food stores. It has two plants: one in Chicago and one in Houston. The company also operates warehouses in Miami, Denver, Lincoln, and Jackson. Forecasts indicate that demand soon will exceed supply and that a new plant with a capacity of 6,000 cases is needed. The question is where to locate the new plant. Two potential sites are Auburn and Springfield. The two tables below give data on capacities, forecasted demand, and shipping costs that have been gathered.
a. Foreachalternativenewplantlocation, determine the total cost of the shipping pattern that will minimize total transportation costs. Where should the new plant be located based on transportation costs?
Develop a network showing the origin nodes, destinations, arcs, cost per arc, supply, and
demand.
Match the correct answer to each question.
Warehouse
A
B
C
D
City E City F City G City H Warehouse Supply.
0.51
0.21 0.52 0.41 4000
Question 1
0.31
Question 2
0.56
0.43
0.35
0.41 0.28
City Demand 4,400 3,000 6,500 4,700
Match the correct answer to the following questions:
1. What is the supply constraint for Warehouse D?
2. What demand constraint for City H?
0.32 0.54 0.33 4000
0.54 0.34 0.52 6300
6000
[Choose ]
[Choose ]
>
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Texas Seasonings is considering three alternative locations for a new plant for producing its seasoning. Below are the associated fixed and variable costs. Assume the revenue is the same regardless of plant location. Which location will never be preferred, and why?
Chapter 13 Solutions
Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
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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