Practical Management Science
5th Edition
ISBN: 9781305250901
Author: Wayne L. Winston, S. Christian Albright
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 6.5, Problem 34P
Summary Introduction
To determine: The objective to minimize.
Introduction: The variation between the present value of the
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
In this problem, your company is a distributor of products. You serve as an inventorymanager for the regional distribution center (DC) here in the Atlanta area. In this role,you schedule the purchase and shipment of products from various suppliers inbound to theAtlanta DC. Once you receive the products at the DC, they are stored in inventory untilthey are picked, packed, and shipped outbound to your company’s downstream customersin response to orders.For each of your products, you currently use a single, dedicated supplier. Each of yoursuppliers ships their products to you from their facility using trucking services, and theyprovide you with choices of different LTL or truckload trucking carriers depending on yourshipment size.Consider managing inventory now for product 101 produced by Supplier A. Currently,you face demand for product 101 of about 200 units per week. Each unit of product 101has a purchase cost p of $500 and you decide to value your inventory at the slightly higherrate…
In this problem, your company is a distributor of products. You serve as an inventorymanager for the regional distribution center (DC) here in the Atlanta area. In this role,you schedule the purchase and shipment of products from various suppliers inbound to theAtlanta DC. Once you receive the products at the DC, they are stored in inventory untilthey are picked, packed, and shipped outbound to your company’s downstream customersin response to orders.For each of your products, you currently use a single, dedicated supplier. Each of yoursuppliers ships their products to you from their facility using trucking services, and theyprovide you with choices of different LTL or truckload trucking carriers depending on yourshipment size.Consider managing inventory now for product 101 produced by Supplier A. Currently,you face demand for product 101 of about 200 units per week. Each unit of product 101has a purchase cost p of $500 and you decide to value your inventory at the slightly higherrate…
In this problem, your company is a distributor of products. You serve as an inventorymanager for the regional distribution center (DC) here in the Atlanta area. In this role,you schedule the purchase and shipment of products from various suppliers inbound to theAtlanta DC. Once you receive the products at the DC, they are stored in inventory untilthey are picked, packed, and shipped outbound to your company’s downstream customersin response to orders.We again consider ordering and inventory management for products that each have adedicated supplier from which you order.
Chapter 6 Solutions
Practical Management Science
Ch. 6.3 - Prob. 1PCh. 6.3 - Prob. 2PCh. 6.3 - Solve Problem 1 with the extra assumption that the...Ch. 6.3 - Prob. 4PCh. 6.3 - Prob. 5PCh. 6.3 - Prob. 6PCh. 6.3 - Prob. 7PCh. 6.3 - Prob. 8PCh. 6.3 - Prob. 9PCh. 6.3 - Prob. 10P
Ch. 6.4 - Prob. 11PCh. 6.4 - Prob. 12PCh. 6.4 - Prob. 13PCh. 6.4 - Prob. 14PCh. 6.4 - Prob. 15PCh. 6.4 - Prob. 16PCh. 6.4 - Prob. 17PCh. 6.4 - Prob. 18PCh. 6.4 - Prob. 19PCh. 6.4 - Prob. 20PCh. 6.4 - Prob. 21PCh. 6.4 - Prob. 22PCh. 6.4 - Prob. 23PCh. 6.5 - Prob. 24PCh. 6.5 - Prob. 25PCh. 6.5 - Prob. 26PCh. 6.5 - Prob. 28PCh. 6.5 - Prob. 29PCh. 6.5 - Prob. 30PCh. 6.5 - In the optimal solution to the Green Grass...Ch. 6.5 - Prob. 32PCh. 6.5 - Prob. 33PCh. 6.5 - Prob. 34PCh. 6.5 - Prob. 35PCh. 6.6 - Prob. 36PCh. 6.6 - Prob. 37PCh. 6.6 - Prob. 38PCh. 6 - Prob. 39PCh. 6 - Prob. 40PCh. 6 - Prob. 41PCh. 6 - Prob. 42PCh. 6 - Prob. 43PCh. 6 - Prob. 44PCh. 6 - Prob. 45PCh. 6 - Prob. 46PCh. 6 - Prob. 47PCh. 6 - Prob. 48PCh. 6 - Prob. 49PCh. 6 - Prob. 50PCh. 6 - Prob. 51PCh. 6 - Prob. 52PCh. 6 - Prob. 53PCh. 6 - Prob. 54PCh. 6 - Prob. 55PCh. 6 - Prob. 56PCh. 6 - Prob. 57PCh. 6 - Prob. 58PCh. 6 - Prob. 59PCh. 6 - Prob. 60PCh. 6 - Prob. 61PCh. 6 - Prob. 62PCh. 6 - Prob. 63PCh. 6 - Prob. 64PCh. 6 - Prob. 65PCh. 6 - Prob. 66PCh. 6 - Prob. 67PCh. 6 - Prob. 68PCh. 6 - Prob. 69PCh. 6 - Prob. 70PCh. 6 - Prob. 71PCh. 6 - Prob. 72PCh. 6 - Prob. 73PCh. 6 - Prob. 74PCh. 6 - Prob. 75PCh. 6 - Prob. 76PCh. 6 - Prob. 77PCh. 6 - Prob. 78PCh. 6 - Prob. 79PCh. 6 - Prob. 80PCh. 6 - Prob. 81PCh. 6 - Prob. 82PCh. 6 - Prob. 83PCh. 6 - Prob. 84PCh. 6 - Prob. 85PCh. 6 - Prob. 86PCh. 6 - Prob. 87PCh. 6 - Prob. 88PCh. 6 - Prob. 89PCh. 6 - Prob. 90PCh. 6 - Prob. 91PCh. 6 - Prob. 92PCh. 6 - This problem is based on Motorolas online method...Ch. 6 - Prob. 94PCh. 6 - Prob. 95PCh. 6 - Prob. 96PCh. 6 - Prob. 97PCh. 6 - Prob. 98PCh. 6 - Prob. 99PCh. 6 - Prob. 100PCh. 6 - Prob. 1CCh. 6 - Prob. 2CCh. 6 - Prob. 3.1CCh. 6 - Prob. 3.2CCh. 6 - Prob. 3.3CCh. 6 - Prob. 3.4CCh. 6 - Prob. 3.5CCh. 6 - Prob. 3.6C
Knowledge Booster
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
- In this problem, your company is a distributor of products. You serve as an inventorymanager for the regional distribution center (DC) here in the Atlanta area. In this role,you schedule the purchase and shipment of products from various suppliers inbound to theAtlanta DC. Once you receive the products at the DC, they are stored in inventory untilthey are picked, packed, and shipped outbound to your company’s downstream customersin response to orders.We again consider ordering and inventory management for products that each have adedicated supplier from which you order. Recently, you have noticed that demand for product 101 has become a bit more volatile andunpredictable. You decide that you want to start holding some safety stock and operate a(q, r) continuous review inventory policy. For this question, let’s assume that backorderingis no longer desirable 4. Assuming that lead time demand is approximately normally-distributed, compute yourreorder level r for this system assuming…arrow_forwardIn this problem, your company is a distributor of products. You serve as an inventorymanager for the regional distribution center (DC) here in the Atlanta area. In this role,you schedule the purchase and shipment of products from various suppliers inbound to theAtlanta DC. Once you receive the products at the DC, they are stored in inventory untilthey are picked, packed, and shipped outbound to your company’s downstream customersin response to orders.We again consider ordering and inventory management for products that each have adedicated supplier from which you order Question 3 One of the items you stock in your distibution center is a seasonal item. Each year, youmust purchase units of this item in advance via a single order. The season lasts 180 days.This item is difficult to sell when the season ends, so you have negotiated an agreement with adiscounter where you pay per item to dispose of any excess inventory at the end of the season.Suppose that you earn sales revenue of $50 for…arrow_forwardSuppliers A, B, and C supply components to three plants -- F, G, and H via two transshipment facilities -- T1 and T2. It costs $4 to ship from T1 regardless of final destination and $3 to ship to T2 regardless of supplier. Shipping to T1 from A, B, and C costs $3, $4, and $5, respectively, and shipping from T2 to F, G, and H costs $10, $9, and $8, respectively. Suppliers A, B, and C can provide 200, 300 and 500 units respectively and plants F, G, and H need 350, 450, and 200 units respectively. The Logistics Manager has come to you for help. Answer the following question: Which of these is not an element of the objective function? Group of answer choices 4D-T1 600T1 9T2-G 3C-T2 Plz do fast asaparrow_forward
- DM Office Products (DMOP) is a wholesale supplier of office products with one facility in Pennsylvania. They have decided to build a new distribution warehouse in the state of New York to help serve the growing demand in that market. They have four major customers located in Buffalo, Syracuse, Albany, and New York City. Though New York City is the largest market, it also has the greatest competition and DMOP is not a major player there. When DMOP ships an order to a customer they use their own small fleet of two trucks to deliver, so the cost of delivery is essentially the same for a full or partially full truck. The expected number of annual shipments to each city and their coordinates on an x, y grid is shown in the following table. CITY Buffalo Syracuse Albany New York x-COORDINATES 370 1,465 2,345 2,320 y-COORDINATES 895 945 675 70 NUMBER OF SHIPMENTS 96 100 140 80 Use the centroid method to recommend a location for the new warehouse for DMOP (Round your answers to 1 decimal…arrow_forwardABC pharmaceutical Company has four factories that ship supplies to four warehouses. The company’s management hires you as a consultant to determine a minimum-cost shipping plan for its monthly output to the warehouses. Factory capacities, warehouse demands, and shipping cost per box are shown below. Factory Supply or capacity (boxes) Warehouse Demand (boxes) Richmond 60 Chicago 100 Santa Fe 80 Jacksonville 90 Austin 120 Huntville 50 Vacaville 90 Fresno 70 Shipping Costs per box (In Dollars) From To Chicago To Jacksonville To Huntsville To Fresno Richmond 35 35 46 60 Santa Fe 65 40 35 25 Austin 50 50 80 90 Vacaville 40 40 66 75 Draw a diagram by showing factories, warehouses, and connecting arcs. Define variables, write the objective function and constraints.arrow_forwardConsider the following transportation decision-making information: Plant Capacity Store Demand A 400 X 200 B 500 Y 250 C 100 Z 300 Total 1000 Total 750 Cost to ship from plant to store (per unit of demand) Plant Store X Y Z A $2 $2 $3.5 B $4 $5 $4.5 C $3 $3 $3 A. Develop the following shipping assignment table that uses the Solver function to find the optimal shipping patterns between the plants and the stores. Plant Store X Y Z A B C B. What is the minimal shipping cost?arrow_forward
- A manufacturer has two shipments to make from Minneapolis to Chicago. Both shipments weigh 8500 pounds. The two shipments can be shipped separately to Chicago at a cost of $2.00 per mile for a total of 409 miles and will take one day for each shipment. The company has a warehouse in Milwaukee where they can consolidate the freight. It would take two LTL shipments at $2.00 per mile to get the freight to Milwaukee for 337 miles and then one full TL shipment from Milwaukee to Chicago at $1.50 per mile for 92 miles. The consolidation cost in Milwaukee is $200 and it takes two days for the trip through Milwaukee. What is the lowest cost to ship the freight and which approach would you select?arrow_forwardCompanies A, B, and C supply components to three plants (F, G, and H) via two crossdocking facilities (D and E). It costs $4 to ship from D regardless of final destination and $3 to ship to E regardless of supplier. Shipping to D from A, B, and C costs $3, $4, and $5, respectively, and shipping from E to F, G, and H costs $10, $9, and $8, respectively. Suppliers A, B, and C can provide 200, 300 and 500 units respectively and plants F, G, and H need 350, 450, and 200 units respectively. Crossdock facilities D and E can handle 600 and 700 units, respectively. Logistics Manager, Aretha Franklin, had previously used "Chain of Fools" as her supply chain consulting company, but now turns to you for some solid advice. What is the objective function? Group of answer choices Max Z = $3AD + $3AE + $4BD + $3BE + $5CD + $3CE + $4DF + $4DG + $4DH + $10EF + $9EG + $8EH Min Z = $3AD + $3AE + $4BD + $3BE + $5CD + $3CE + $4DF + $4DG + $4DH + $10EF + $9EG + $8EH Min Z = $3AD + $3BE + $5CD + $3CE…arrow_forwardSuppose a company with a plant located in Toronto is serving a market in the northeastern United States with many customers located in Boston. If the company ships direct to customers from the Toronto plant, most shipments will be less than truckload. However, if it locates a distribution center in Boston, it can ship truckload (TL) to Boston and distribute bylocal cartage (LTL) to customers in that area. Whether this is economical or not depends on the total cost of shipping direct compared with shipping via the distribution center. Assume the following figures represent the average shipments to the Boston area:Option 1: Plant to customer LTL: $100/cwt. [uses direct dispatch from company to customers]Option 2: Through DCPlant to distribution center TL: $50/cwt.Inventory-carrying cost (distribution center): $10/cwt.Distribution center to customer LTL: $20/cwt.QuestionIs it more economical to establish the distribution center in Boston? If the annual shipped volume is 10,000 cwt., what…arrow_forward
- A company is producing a single product and selling it through five agencies situated in different cities. All of a sudden, there is a demand for the product in five more cities that do not have any agency of the company The company is faced with the problem of deciding on how to assign the existing agencies to dispatch the product to the additional cities in such a way that the travelling distance is minimised. The distances (in km) between the surplus and deficit cities are given in the following distance matrix.arrow_forwardCars-to-Dealers Logistics Inc. is the exclusive logistics provider for the Summit Motor Co. and has responsibilityfor transporting cars from Summit’s 3 manufacturing plants in Toledo, OH; Charlotte, NC and Savannah, GA tothe 7 regional dealer locations as in the tables provided in your dataset. To do this, Cars-to-Dealers uses threetransshipment facilities and all cars in the distribution network pass through these transshipment facilities.Dataset also contains the information about the capacities of each of these transshipment facilities, the demandrequirement at each of the regional dealer locations and the unit cost to ship one car between the variouslocations.In addition to supply of cars (manufacturers) and demand for cars (dealers) there are two types of constraintsfor each transshipment facility:1. Balance flow constraints: dictate that all cars flowing into a transshipment facility should also flow out of thetransshipment facility – i.e. no inventory of cars should remain at…arrow_forwardIn May 2023, several empty containers, totaling 20 containers, need to be reallocated among terminals in Amsterdam, Berlin, Munich, Paris, Milan, Barcelona, and Madrid. The available or requested number of empty containers at various terminals is reported, along with the transportation costs (in euros per container) as seen in Figure 1.Determine how to solve the problem with the goal of minimizing transportation costs.Note: "+" denotes supply nodes, and "-" denotes demand nodes.Arrows depict the flow of material and costs.Please provide the mathematical explanation used to solve the question above.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,