Tesla Corporation has three different factories (A, B and C) where they make Premium Electric Sedans, which are then shipped to one of three warehouses (J, K, and L) where Tesla does the final paint job and ensures that the car meets all of their standards, after which the Sedans are then shipped to one of three retail stores (X, Y and Z) where customers can purchase the Sedan. The relevant supply, demand, and per-unit shipping cost information are given in the table below. Set-up and solve a transshipment model, while minimizing the total shipping cost for Tesla Corporation. Factory Supply A 400 B C 500 350 ΤΟ K L A $400 $700 $500 B $800 $500 $ 400 $500 $600 $ 700 C Store Demand From J X 400 Y 325 Z 400 TO From X Y J $600 $ 400 K L Z $ 800 $300 $600 $ 700 $200 $400 $ 500

Tesla Corporation has three different factories (A, B and C) where they make Premium Electric Sedans, which are then shipped to one of three warehouses (J, K, and L) where Tesla does the final paint job and ensures that the car meets all of their standards, after which the Sedans are then shipped to one of three retail stores (X, Y and Z) where customers can purchase the Sedan. The relevant supply, demand, and per-unit shipping cost information are given in the table below. Set-up and solve a transshipment model, while minimizing the total shipping cost for Tesla Corporation. Factory Supply A 400 B C 500 350 ΤΟ K L A $400 $700 $500 B $800 $500 $ 400 $500 $600 $ 700 C Store Demand From J X 400 Y 325 Z 400 TO From X Y J $600 $ 400 K L Z $ 800 $300 $600 $ 700 $200 $400 $ 500

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. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
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As a logistics specialist, you are responsible for meeting customer demand. One of your customers places orders for you to supply four products by the end of October. You have limited capacity for raw material and other facilities. You are required to satisfy customer demand by manufacturing the products and/or buying from a supplier. After consulting with the production department, you obtained the following information. Product A Product B Product C Product D Order quantity 2000 3500 1500 2500 Hours required on machine X per unit 2 4 5 3 Hours required on machine Y per unit 4 3 6 2 Raw material in kilos 5 1 4 6 Time needed for Packaging per unit 36 minutes 30 minutes 45 minutes 24 minutes Available monthly hours per month: 8,000 on machine X, 6000 on machine Y, and 3,000 hours for packaging. Purchased items from your supplier are already packaged. Available raw material per month: 5,000 kilos…