Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter B, Problem 27P
A fertilizer manufacturer has to fulfill supply contracts to its two main customers (650 tons to Customer A and 800 tons to Customer B). It can meet this demand by shipping existing inventory from any of its three warehouses. Warehouse 1 (W1) has 400 tons of inventory on hand, Warehouse 2 (W2) has 500 tons, and Warehouse 3 (W3) has 600 tons. The company would like to arrange the shipping for the lowest cost possible, where the per-ton transit costs are as follows:
- a. Explain what each of the six decision variables (V) is: (Hint: Look at the Solver report below.)
V A1: _________
V A2: _________
V A3: _________
V B1: _________
V B2: _________
V B3: _________
- b. Write out the objective function in terms of the variables (V A1, V A2, etc,) and the objective coefficients.
- c. Aside from nonnegativity of the variables, what are the five constraints? Write a short description for each constraint, and write out the formula (and circle the type of equality/inequality).
After you formulate and enter the linear program for Problem B.27 in Excel, the Solver gives you the following sensitivity report:
Adjustable Cells
Constraints
- d. d) How many of the constraints are binding?
- e. e) What is the range of optimality on variable V A3?
- f. f) If we could ship 10 tons less to Customer A, how much money might we be able to save? If we could choose to short either Customer A or Customer B by 10 tons, which would we prefer to short? Why?
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CASE:
The manager of a community pharmacy is reordering his stock of generic atenolol when he notes in the catalogue that a new manufacturer is also now producing and packaging atenolol at what appear to be competitive prices. At present he orders, on average, three 250-count bottles per month at Php 120 per bottle from Company A. However, Company B is offering one bottle of 1,000-count atenolol for Php 175.
Detail the type of analysis the pharmacist might conduct to determine which option would be least costly. Assuming the pharmacy dispenses 10,000 atenolol pills over the course of one year, from which company should the pharmacist order if financial considerations are the only consideration?
What chronic ailment is atenolol used for?
What is the aim of this case?
Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of
30
units and is valued at
$60
per unit. Inbound shipments from vendor 1 will average
330
units with an average lead time (including ordering delays and transit time) of
4
weeks. Inbound shipments from vendor 2 will average
450
units with an average lead time of
3
weeks.
Ruby-Star operates 52 weeks per year; it carries a
4-week
supply of inventory as safety stock and no anticipation inventory.
A. the average aggregate inventory value of the product if ruby star used vendor 1 exclusively is $_____ (enter your response as a whole number)
B. the average aggregate inventory value of the product if ruby sta used vendor 2 exclusively is $______ (enter your response as a whole number)
C. how would your analysis change if average weekly demand increased to 140 units per week?
the average aggregate inventory value of the product if ruby star used vendor 1…
She must travel to Kenya to check on quality and transportation. The trip will cost $2,500. The cost of the handbag is $10 and shipping to the United States can occur through the postal system for $2 per handbag or through a freight company which will ship a container that can hold up to 1,000 handbags at a cost of $1,000. The freight company charges $1,000 even if less than 1,000 handbags are shipped. Leslie will sell the handbags to retailers for $20. Assume there are no other costs and benefits.
what is the output level that both shipping methods yield same profit?
Ho
Chapter B Solutions
Operations Management
Ch. B - Prob. 1DQCh. B - Prob. 2DQCh. B - Prob. 3DQCh. B - Prob. 4DQCh. B - Prob. 5DQCh. B - Prob. 6DQCh. B - Prob. 7DQCh. B - Prob. 8DQCh. B - Prob. 9DQCh. B - Prob. 10DQ
Ch. B - Prob. 11DQCh. B - Where a constraint crosses the vertical or...Ch. B - Prob. 13DQCh. B - Prob. 1PCh. B - Prob. 2PCh. B - Prob. 3PCh. B - B.4. Consider the following linear programming...Ch. B - Prob. 5PCh. B - Prob. 6PCh. B - Prob. 7PCh. B - Prob. 8PCh. B - Green Vehicle Inc. manufactures electric cars and...Ch. B - Prob. 10PCh. B - Prob. 11PCh. B - Prob. 12PCh. B - The LP relationships that follow were formulated...Ch. B - Prob. 14PCh. B - Prob. 15PCh. B - Prob. 16PCh. B - Prob. 17PCh. B - Prob. 18PCh. B - Prob. 19PCh. B - Prob. 20PCh. B - Prob. 21PCh. B - Prob. 22PCh. B - Prob. 23PCh. B - How many corner points are there in the feasible...Ch. B - Prob. 25PCh. B - Prob. 26PCh. B - A fertilizer manufacturer has to fulfill supply...Ch. B - Prob. 28PCh. B - Bowman Builders manufactures steel storage sheds...Ch. B - Prob. 30PCh. B - Quain Lawn and Garden, Inc Bill and Jeanne Quain...Ch. B - Quain Lawn and Garden, Inc Bill and Jeanne Quain...
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