9.1-7. The Move-It Company has two plants producing forklift trucks that then are shipped to three distribution centers. The production costs are the same at the two plants, and the cost of shipping for each truck is shown for each combination of plant and distribution center: Plant A B 1 $800 $600 Distribution Center 2 $700 $800 3 $400 $500 A total of 60 forklift trucks are produced and shipped per week. Each plant can produce and ship any amount up to a maximum of 50 trucks per week, so there is considerable flexibility on how to divide the total production between the two plants so as to reduce shipping costs. However, each distribution center must receive ex- actly 20 trucks per week. Management's objective is to determine how many forklift trucks should be produced at each plant, and then what the over- all shipping pattern should be to minimize total shipping cost. (a) Formulate this problem as a transportation problem by con- structing the appropriate parameter table. (b) Display the transportation problem on an Excel spreadsheet. c (c) Use Solver to obtain an optimal solution.

9.1-7. The Move-It Company has two plants producing forklift trucks that then are shipped to three distribution centers. The production costs are the same at the two plants, and the cost of shipping for each truck is shown for each combination of plant and distribution center: Plant A B 1 $800 $600 Distribution Center 2 $700 $800 3 $400 $500 A total of 60 forklift trucks are produced and shipped per week. Each plant can produce and ship any amount up to a maximum of 50 trucks per week, so there is considerable flexibility on how to divide the total production between the two plants so as to reduce shipping costs. However, each distribution center must receive ex- actly 20 trucks per week. Management's objective is to determine how many forklift trucks should be produced at each plant, and then what the over- all shipping pattern should be to minimize total shipping cost. (a) Formulate this problem as a transportation problem by con- structing the appropriate parameter table. (b) Display the transportation problem on an Excel spreadsheet. c (c) Use Solver to obtain an optimal solution.

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...

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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?
13.2 A company manufactures component parts for machine tools in North America and ships them to Southeast Asia for assembly and sale in the local market. The components are shipped by sea, transit time averages 6 weeks, and the shipping costs $2700 per shipment. The company is considering moving the parts by air at an estimated cost of $7500; the shipment taking 2 days to get there. If inventory in transit for the shipment costs $125 per day, should they ship by air?
After applying the NWC Rule for the initial tableau of the given transportation model, evaluate the vacant cells. What is the cell which has the most negative evaluation value and what is the cell evaluation value? DESTINATION SOURCE DEMAND X Y N OX-R; 1 OY-S; -1 OX-S; -1 OY-S; -2 P 75 8 12 EI 11 Q 80 5 8 11 R 120 7 10 10 S 50 11 13 14 SUPPLY 100 125 100 325
Corral Cartage leases trucks to service its shipping contracts. Larger trucks have cheaper operating costs if there is sufficient business, but are more expensive if they are not full. CC has estimates of monthly shipping demand. What comparison method(s) would be appropriate for choosing which trucks to lease?
Demand for stereo headphones and music players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for this year was as follows: MONTH DEMAND (UNITS) January 4,150 February 4,250 March 3,950 April 4,350 May 4,950 June 4,650 July 5,250 August 4,850 September 5,350 October 5,650 November 6,250 December 5,950 a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.8. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors of estimate for safety. How many additional units should be held to meet this…
Determine the number of cycles per day and the production quantity per cycle for this set ofvehicles:Product Daily QuantityA 21B 12C 3D 15Use the sequence A-B-C-D.
Selling Price String beans Okra Meat Eggplant PINAKBET 135 Quantity Per Order 3 3 5 1 1 5 SINIGANG 150 2 2 Price Per Ingredient 3 5 10 6 Available Quantity 15 30 30 20 1.) Maximize the quantity and price. How many pinakbet and sinigang should be sold so that there will be minimum available quantity and maximum sales?
Henri of Henri’s French Cuisine (HFC), a chain of twelverestaurants, is trying to decide if it makes sense to outsource thepurchasing function. Currently, Henri employs two buyers at anannual fi xed cost of $85,000. Henri’s estimates that the variablecost of each placed purchase order is $15. Value-Buy (VB), a groupof purchasing specialists, will perform the purchasing functionfor a fi xed annual fee of $100,000 plus $5 for each purchase orderplaced. Last year, HFC placed 1450 purchase orders.(a) Construct a base-case spreadsheet model that shows bothof these alternatives side-by-side. Use the same number oforders (stored in a single cell) to drive the calculations.(b) Using last year’s quantity of purchase orders, whichalternative would have been the better?(c) Use Goal Seek to fi nd the indiff erence point (where totalcosts are equal) between these two alternatives. (Hint: GoalSeek can work only with a single “Set cell.” Create a cell inyour model that computes the diff erence…
Selling Price String beans Okra Meat Eggplant PINAKBET 135 SINIGANG 150 Quantity Per Order 3 3 5 1 1 5 2 2 Price Per Ingredient 3 5 10 6 Available Quantity 15 30 30 20 1.) Maximize the quantity and price. How many pinakbet and sinigang should be sold so that there will be minimum available quantity and maximum sales? 2.) How many pinakbet will be produced if you only sold 1 sinigang? 3.) How many sinigang will be produced if you only sold 1 pinakbet?
1. a. Define following: iv. Cycle Inventory v. Level of Product Availability vi. Reverse Logistics vii. Honey Combing
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January 4,000 February 4,100 March 3,800 April 4,200 May 4,850 June 4,500 July 5,150 August 4,750 September 5,250 October 5,550 November 6,150 December 5,850 a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.7. (picture below)(Do not round intermediate calculations. Round your answers to 2 decimal places.) Month Forecast january february march april may june july august september october november december
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January 4,000 February 4,100 March 3,800 April 4,200 May 4,850 June 4,500 July 5,150 August 4,750 September 5,250 October 5,550 November 6,150 December 5,850 a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.7. (picture below)(Do not round intermediate calculations. Round your answers to 2 decimal places.) Month Forecast january february march april may june july august september october november december b. To…