Question 4. • Formulate this problem as a LP in which the objective is to minimize the total cost? • What is the name of this problem? Three suppliers (S₁, S₂, S3) are used to provide four customers (T₁, T₂, T3, T4) with their requirements for a particular commodity over a year. The yearly capac- ities of the suppliers and requirements of the customers are given below (in suitable units) Suppliers Capacities (per year) Customers Requirements (per year) S₁ Table 5.3 Supplier S₁ 135 The unit costs for supplying each customer from each supplier are given in Table 5.3 (in pounds per unit). T₁ 132 85 106 S₂ S₂ 56 93 T₁ T₂ T₁ T4 62 83 39 91 Customer T₂ _a 91 89 T3 97 T4 103 100 98 "A dash indicates the impossibility of certain suppliers for cer- tain depots or customers.

Question 4. • Formulate this problem as a LP in which the objective is to minimize the total cost? • What is the name of this problem? Three suppliers (S₁, S₂, S3) are used to provide four customers (T₁, T₂, T3, T4) with their requirements for a particular commodity over a year. The yearly capac- ities of the suppliers and requirements of the customers are given below (in suitable units) Suppliers Capacities (per year) Customers Requirements (per year) S₁ Table 5.3 Supplier S₁ 135 The unit costs for supplying each customer from each supplier are given in Table 5.3 (in pounds per unit). T₁ 132 85 106 S₂ S₂ 56 93 T₁ T₂ T₁ T4 62 83 39 91 Customer T₂ _a 91 89 T3 97 T4 103 100 98 "A dash indicates the impossibility of certain suppliers for cer- tain depots or customers.

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. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
[8] United States. Your harvest has just come in and you picked 795,000 pounds of apples. You need to distribute the harvest to the appropriate warchouse locations. You manage an apple orchard that distributes fruit throughout the southeast part of the [A] Using the following warchouse information, allocate the apples to their appropriate locations. DEMAND STANDARD DESIRED WARE CURRENT STOCK DEVIATION OF DEMAND HOUSE INVENTORY FORECAST AVAIL- ABILITY Atlanta 35,000 lbs 190,000 lbs 20,000 lbs 95% Miami 10,000 Ibs 170,000 lbs 18,000 lbs 95% Columbia 45,000 lbs 155,000 Ibs 10,000 lbs 85% Memphis 5,000 lbs 145,000 Ibs 25,000 lbs 80% [B] Discuss two additional methods to push inventory into a network.
Year Cost of Good Sold Beginning Inventory (In Pesos) Ending Inventory (In Pesos) 1 503,425 10,300 12,400 2 643,056 12,400 11,200 3 690,432 11,200 10,670 4 734,509 10,670 11,200 5 758,734 ? 10,987 REQUIRED Determine the inventory turnover for year 5. Determine the number of days the finished goods stay in inventory in Year 1. There was no improvement in inventory turnover in Year 5 compared to Year 1. This statement is not correct. Write YES or NO for the answer
ABC analysis on the following set of products Item Annual Demand Unit CostA 211 800 R9B 390 100 R90C 003 450 R6D 100 400 R100E 707 85 R2,000F 660 250 R320G 473 500 R75H 921 100 R75 Soft goods department sells 175 units per month of a certain large bath towel. The unit cost of a towel to the manufacturer is R2.50 and the cost of placing an order has been estimated to be R12.00. There is an inventory carrying charge of 27% of the unit cost per year. What is the optimal order quantity, the order frequency, and the annual holding and setup cost. If the ordering cost can be cut to R4.00, what will be the new economicorder quantity, the order frequency, and annual holding and setup costs.
The City Taxi Company uses 200,000 liters of diesel fuel per year at a constant rate. It costs 50 OMR to process the orders, invoices, inspections and completion of delivery for each time the company places an order from its supplier, Southern Oil.The taxi company pays 0.2 OMR per liter for the diesel fuel. Holding costs due to evaporation losses and other storage costs are 40%. The lead time for the diesel order is 5 days. Assume 350 days per year. (a) How many liters of diesel should the taxi company purchase with each order? ০ 10.000 15,811.4 O 11,180.3 O 7071.0 (b) The re-order point that the Taxi Company should use is: O 571.43 liters 5 days O 2857.14 liters O 2857 days
ABC company supplies parts to a major manufacturer for the production of Item I. Thecarrying amount of the inventory of parts at the end of the fiscal year 2020 is €2,000,000,which was considerably higher compared to the level of inventory of Item I in previousperiods. During January 2021 the manufacturer terminated the production of Item I andstarted the production of Item II. The parts produced by ABC are not interchangeablebetween Item I and Item II. Moreover, Item I cannot be sold to another manufacturer. - Discuss whether ABC should write-down its inventory for the financial statementsof 2020.
A company's distribution and warehouse expenses do NOT include which one of the following? a) The costs of processing, boxing, packaging, handling, and shipping orders to footwear retailers and -online buyers b)A standard import tariff of $4.00 per pair on any pairs imported from the company's foreign production facilities--tariffs are due and payable at the port of entry rather than when the pairs are sold c)Annual leasing and maintenance fees of $1 million for each of the company's four distribution centers; however, such expenses fall to 5 times the number of pairs sold when warehouse volume in any region is less than 200,000 pairs annually (should company managers decide to abandon selling footwear in a geographic region, leasing and maintenance costs will fall to $0 (resuming if/when sales begin again) d)The inventory costs of carrying unsold pairs over from the prior year ($0.50 per pair on required inventrory and $1 per pair on additional unsold pairs) e)Per pair freight…
Demand history for the past three years is shown below. Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Year Demand 185 217 Year 1 310 251 194 196 Year 2 320 301 189 207 Year 3 330 256 Round your answer to three decimal places. What is the seasonal index for Q1?
A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown below. New Albany Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in Monterrey, Mexico. The automobile assembly factory is assumed to operate 250 days per year. Certified Supplier New Albany Mfg. LaPlaya Mfg. Order Size (Q) 30,000 60,000 Price per Unit (P) Order quantity: Total procurement cost: Total management oversight cost: Total annual transportation cost: Annual order cost: Annual holding cost: Average annual pipeline inventory cost: Total supply chain costs: $14.38 $13.55 Oversight Cost per Unit (0) $0.00 $0.37 $ LA GA $ LA tA a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 480,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. 30,000 units 60,000 units tA Transport Cost…
The operations manager of a company extracted the following annual demand data from the research and development department of the company. Use it to answer questions 23-30. Year Price (¢) Demand Jan 6. 9500 Feb Mar April Мay June July 8 9000 8000 6800 5000 11 18 24 32 3500 40 2000 23. What is the percentage change in demand for transport services between Feb and May? (a) 0.44% (b) 4.44% (c) 44.4% (d) 45.4% 24. What is the average demand for the period \(a) 6257 (b) 6527 (c) 6752 (d) 7245 25. The percentage change in price between Jan and May is: Ya) 45.45% (b) 45.54% (c) 54.45% (d) 54.54% 26. How will a passenger pay for this transport service is he travelled six times in May? (a) 44 (b) 84 * (c) 144 (d) 244 27. How much more or less will a passenger pay if she travelled five times in April and three times in July? (a) 30- (b) (30) (c) 60 (d) (60) Page 5 of 16 Pcu IDL/supp' 636-19 28. What is the price elasticity ofr demand for this transport service hetween Inn and Muy (u) 0.319 (b)…
A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown below. New Albany Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in Monterrey, Mexico. The automobile assembly factory is assumed to operate 250 days per year. Certified Supplier New Albany Mfg. LaPlaya Mfg. Order Size (Q) 44,000 88,000 Price per Unit (P) Order quantity: Total procurement cost: Total management oversight cost: Total annual transportation cost: Annual order cost: Annual holding cost: Average annual pipeline inventory cost: Total supply chain costs: $15.14 $14.08 Oversight Cost per Unit (0) $0.00 $0.47 LA tA tA tA a. Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 440,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. 88,000 units $ tA $ LA Transport Cost per Unit…
A hospital treating COVID patients needs to buy gloves, gowns, and masks for the health care professionals working at the facility. The hospital has two suppliers who can supply the items. The cost, and the maximum number of each item each supplier can provide is given below: Supplier A Supplier B Gloves (cost, max units) ($0.30/unit, 20,000) ($0.35/unit, 11,000) Gowns Masks ($2.00, ($2.50, 5000) 10,000) ($1.75, 7000) ($2.55, 9,500) The hospital immediately needs 30,000 units of gloves, 5500 units of gowns, and 12,500 masks. To account for the economies of scale in logistics, the Supplier A has a requirement of at least 25,000 units in the order, while Supplier B has a requirement of a minimum order size of 10,000 units and a maximum order size of 20,000. What is is the minimum total cost of order that the hospital needs to pay to the suppliers to get the items?