Concept explainers
a)
To determine: Optimal solution and total cost using northwest-corner method.
Introduction: The major objective of the transportation problem is to minimize the distributing cost of a product from a source to an origin. Transportation problem is one of the types of linear programming.
b)
To determine: Optimal solution and total cost using intuitive lowest-cost starting method.
Introduction: The major objective of the transportation problem is to minimize the distributing cost of a product from a source to an origin. Transportation problem is one of the types of linear programming.
c)
To determine: Optimal solution and total cost using stepping stone method.
Introduction: The major objective of the transportation problem is to minimize the distributing cost of a product from a source to an origin. Transportation problem is one of the types of linear programming.
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Operations Management: Sustainability and Supply Chain Management (12th Edition)
- Question (2): Answer the following problem: A manufacturer of a certain industrial component is interested in locating a new facility in a target market. There are four supply points A, B, C and D. Two possible sites for the new facility are being considered, one in (market Q) and the other in (market Z). The following table shows the distances being considered and the four supply points. Use the load- distance model to determine whether the new facility should be located in (market Q) or in (market Z). (State your decision) Supply points Distance to market Q Distance to market Z Load between the supply point and new facility. A 32 14 15 B 8 14 10 C 12.5 32 12 D 6.5 26 8arrow_forwardUniversity College Sabah Foundation QUESTION I As customers are often reluctant to eat in hotel restaurants because they assume that they are too expensive, Accor (Sofitel, Novotel, Mercure, Pullman, Ibis, Ibis styles and others) is looking at buying over the Secret Recipe chain (restaurants in Malaysia, Singapore, Indonesia, Thailand, China, Brunei, Cambodia and Myanmar) to place a Secret Recipe in each of its Ibis and Ibis Styles properties (4 in Malaysia, 2 in Singapore, 12 in Thailand and 83 in China) as well as maintain the current restaurants. Accor hotels are typically under management contracts with local owners. b. Analyse the synergies between the two companies in terms of strategic fit.arrow_forwardQuestion 3 Maya Itd. wants to use the Centre of Gravity location technique to determine where to setup its distribution centre. I. What is the main objective of using this technique? II. What information will be needed in order to use this technique? III. Setup a numerical example that can be used to demonstrate to the owner of the company how the technique can be used.arrow_forward
- Question number: 3 Transportation is the movement of material from one place to another. In supply chain management, the material usually travels from various place through various organizations and aimed to reach at the right time, to the right place, in the right quantity with the right condition and paperwork, etc. What are the different purposes and uses of tracking and tracing the goods and services while managing the supply chain? Provide examples to endorse your answer.arrow_forwardQuestion content area Part 1 The fixed and variable costs for four potential plant sites for Brent Snyder's Ski Supplies are shown below: Site Fixed Cost Per Year Variable Cost Per Unit Atlanta $120,000 $5 Burlington 70,000 4 Cleveland 95,000 3 Denver 45,000 11 Part 2arrow_forwardQuestion 3. There are a number of key risks that the logistics function may face. Explain five typical immediate responses that can be used to deal with these risks.arrow_forward
- QUESTION 1.4 Software project management is the art and science of planning and leading software projects. It is a sub-discipline of project management in which software projects are planned, implemented, monitored and controlled. State the reasons why software engineering projects are difficult to manage and further elaborate on some of the considerations which need to be taken into account when calculating the price of a software systemarrow_forwardChapter 15 Q6arrow_forwardQuestion 1arrow_forward
- Exercise of Transportation Problem Q1: Metro Water Company (Distributing natural resource) Metro Water District is an agency that administers water distribution in a large geographic region. The region is arid, so water must be brought in from outsid e the region. There are three sources of imported water, which are Colombo River, Sa cron River, and Calorie River. Four cities is in need of water, which are city Berdoo, L OS Devils, San Go, and Hollyglass. The cost for taking water from each river and s ending water to each city is different, shown in the following table. Metro Water Comp any wants to minimize the total cost when distributing the needed water. How mục h water should Metro take from each river, and how much should they send from each river to each city Cost per Acre Foot Berdoo Los Devils San Go Hollyglass Available Colombo River $160 $130 $220 $170 5 Sacron River 140 130 190 150 6 Calorie River 190 200 230 5 - Needed 4 1.5 (million acre feet)arrow_forwardQUESTION 7 Kelly Holiday Tavel Ltd is deciding which destination to award its “holiday site of the year” award to. It has compiled the following information and assigned weightings to reflect how important each factor is to its customers. All numbers are percentages. Which destination will win the award? Safety Culture Food Acapulco 50 70 80 Moscow 5 60 40 Romford 20 10 20 Toronto 80 50 60 WEIGHT 25 50 25 A. Acapulco B. Moscow C. Romford D. Torontoarrow_forwardQUESTION 5 Supposing Petromin intends to build another oil refinery in PNG apart from the existing 2 small oil refineries (refer to question 2 above). The alternatives are to either build a big refinery, medium refinery, small refinery or no refinery at all. It has forecast the demand for its oil against the 4 alterative as shown in the table below. Alternatives Build large refinery Build medium refinery Build small refinery No refinery High demand 650000 150000 70000 0 Outcomes Moderate demand 543000 100000 40000 0 Low demand 325000 65000 20000 0 Undertake a decision analysis. Specifically, apply the maximax, maximin, Laplace and minimax (regret) approaches. Interpret your results.arrow_forward
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