Consider the transportation table below. (a) Use the Northwest-Corner Method, the Least-Cost Method and the VAM to get the starting feasible solution. (b) Find the optimal solution by considering the smallest value of the objective function computed in (a). Cost to ship one unit from factory 1 to warehouse A A C D Supply Factory 1 can supply 100 units per period 1 100 Factory 2 200 3 150 Total supply capacity per period Demand 4 12 8 B 7 3 10 80 90 Warehouse B can use 90 units per period 120 7 8 16 160 1 8 5 (450 450 Total demand per period

Consider the transportation table below. (a) Use the Northwest-Corner Method, the Least-Cost Method and the VAM to get the starting feasible solution. (b) Find the optimal solution by considering the smallest value of the objective function computed in (a). Cost to ship one unit from factory 1 to warehouse A A C D Supply Factory 1 can supply 100 units per period 1 100 Factory 2 200 3 150 Total supply capacity per period Demand 4 12 8 B 7 3 10 80 90 Warehouse B can use 90 units per period 120 7 8 16 160 1 8 5 (450 450 Total demand per period

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

See similar textbooks

Similar questions

Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
2) Using the cost table of the transportation problem shown below, do the following: a) Develop the appropriate LP model of the problem. WAREHOUSE PLANT A B C D DEMAND 1 5 10 7 20 200 2 3 12 5 25 400 3 8 10 10 18 600 4 7 8 12 30 1000 SUPPLY 200 500 300 1000
Qn1. Find the optimal solution to the transportation problem using MODI method. Warehouses Supply WI W2 W3 W4 P1 19 30 50 12 Plants 5. 2. P2 70 30 40 60 P3 40 10 60 20 3. 15 Demand 4)
Weighted factor methodUse the table to calculate the most ideal X coordinate for supermarket Point Quantity offered/requested Transportation costs Coordinate X Coordinate Y Supermarket 1 3,000 0.04 4 8 Supermarket 2 3,500 0.04 7 2 Supermarket 3 2,000 0.07 3 5 Supermarket 4 1,500 0.07 7 4 Supermarket 5 1,200 0.07 6 8
: x v fx C DE в F G H K M Consider the linear distribution and the from-to diagram shown in the figure. Assuming that the goal is to minimize the total distance traveled, determine the final distribution recommended by CRAFT using the peer-to-peer trading method. 30 m 30 m from A A B A 2 6 B 3 A В 80 m 20 m
(d) Which warehouse will experience shortage? How much is the shortage? (e) Is there an alternative optimal solution? Why? (c) Calculate the minimum transportation cost. (b) Determine the quantity of wheels that should be shipped from each plant to each warehouse to minimise the total transportation cost. CHAPTER 5 TRANSPORTATION MODEL To Distribution Centre From N P. Сарacity 8. 6. 10 13 150 B. 11 6. 9. 12 120 Demand 50 80 60 60 (a) Find an initial solution. (b) Determine an optimal solution and the minimum transportation cost. (c) Which factory will have the surplus? How much is the surplus? (d) Is there an alternative optimal solution? 6. A manufacturer produces sport wheels at three plants located at towns A, B, and C. The wheels are sent to three warehouses located at T, X, Y, and Z. The plant in Town A has 400 units available each month, Town B has 300 units, and Town C has 300 units. The requirements of warehouses at T, X, Y, and Z are 300, 300, 240, and 200 respectively. The…
Q3) The Cure medical distribution center distributes urgent medical equipment for five local hospitals in Washington DC metropolitan area. Cure Medical distribution would like to invest in a new warehouse in Washington DC to minimize the total distance from five major hospitals. The coordinate of the five hospitals is given below: ( (2) 3 Great Fall (C) (47) 122 (121) Fairfax 10 We W Bu (645) -D (-20, 30)- -E (-40, -30) Colesville Fairland Calpen A (10,60) -B (10,-10) Ⓡ South Lourel stuxent search Refuge (MA A (14) tille (214) pha Bowit (00 X -C (45, -20) 201 C a) Use Solver to determine where the new warehouse should be in to minimize the total distance from 5 hospitals. What are the coordinates of the new warehouse? b) Solve your problem again to minimize the maximum distance between hospitals and the new warehouse. What are the coordinates of the new warehouse?
Determine how many products to ship from each factory to each warehouse, or from each factory to each warehouse and direct to each end customer, to minimize shipping cost while meeting warehouse demands and not exceeding factory supplies Explain the above scenario using the problem given below: Warehouse Capucity Factory w, W, W. (Supply) 21 16 25 13 F. F, 17 18 14 23 13 32 27 18 41 19 Requirement 6 (Demand) 10 12 15 43 Use least cost Method to solve the problem. Using Transportation method
Evaluate the current China/Taiwan logistics costs. Assume a current total volume of 190,000CBM and that 89 percent is shipped direct from the supplier plants in containers. Use the datafrom the case and assume that the supplier-loaded containers are 85 percent full. Assume thatconsolidation centers are run at each of the four port locations. The consolidation centers useonly 40-foot containers and fill them to 96 percent capacity. Assume that it costs $480 to ship a20-foot container and $600 to ship a 40-foot container. What is the total cost to get thecontainers to the United States? Do not include U.S. port costs in this part of the analysis
Use the Stepping Stone Method to solve the following. Use degeneracy method or dummy method if necessary. 1. BALANCED. Provide the transportation model for the calculation of cost given the following data: To==> 3 Supply a. From A 100 B 200 | 7 200 Demand 200 200 100 To From B Supply A C 7 4 100 5 3 180 8 5 7 200 3 Demand 135 175 170 61 2. 2) b.
1. GIven the table below: Seattle California Las Vegas New Jersey supply Chicago $13 $12 $15 $10 1200 New York $11 $8 $25 $20 1375 Houston $4 $18 $10 $25 896 Georgia $8 $21 $12 $30 600 Kentucky $15 $6 $18 $20 459 Warehouse demand 1000 980 957 1593 a) use the NORTH WEST CORNER RULE model, create a transportation schedule that ensures that the supplies meet the warehouses’ demands b) determine the total transportation cost to the company in doing so.