A company has three existing warehouses to which it will ship furniture from a new factory whose location must be decided. The factory will receive raw materials from its wood supplier and fabric supplier. The annual number of shipments, shipment costs and the location of the suppliers and warehouses are shown below Existing facilities Annual L to or from fact cost Coordinate location Wood supplier 120 10 (100, 400) Fabric supplier 200 10 (800,700) Ware h 1 61 10 (300, 600) Ware h 2 40 10 (200, 100) Ware h 3 70 10 (600, 200) Using the median load answer the following questions –Where the factory should be located to minimize annual transportation cost –What will be the minimum annual transportation cost
A company has three existing warehouses to which it will ship furniture from a new factory whose location must be decided. The factory will receive raw materials from its wood supplier and fabric supplier. The annual number of shipments, shipment costs and the location of the suppliers and warehouses are shown below Existing facilities Annual L to or from fact cost Coordinate location Wood supplier 120 10 (100, 400) Fabric supplier 200 10 (800,700) Ware h 1 61 10 (300, 600) Ware h 2 40 10 (200, 100) Ware h 3 70 10 (600, 200) Using the median load answer the following questions –Where the factory should be located to minimize annual transportation cost –What will be the minimum annual transportation cost
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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A company has three existing warehouses to which it will ship furniture from a new factory whose location must be decided. The factory will receive raw materials from its wood supplier and fabric supplier. The annual number of shipments, shipment costs and the location of the suppliers and warehouses are shown below
|
Existing facilities |
Annual L to or from fact |
cost |
Coordinate location |
|
Wood supplier |
120 |
10 |
(100, 400) |
|
Fabric supplier |
200 |
10 |
(800,700) |
|
Ware h 1 |
61 |
10 |
(300, 600) |
|
Ware h 2 |
40 |
10 |
(200, 100) |
|
Ware h 3 |
70 |
10 |
(600, 200) |
- Using the median load answer the following questions
–Where the factory should be located to minimize annual transportation cost
–What will be the minimum annual transportation cost
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