An electronics discount chain has a sale on a certain brand of 60-in. high-definition television set. The chain has stores in Santa Monica and El Toro and warehouses in Long Beach and Pasadena. To satisfy rush orders, 16 sets must be shipped from the warehouses to the Santa Monica store, and 19 must be shipped to the El Toro store. The cost of shipping a set is $5 from Long Beach to Santa Monica, $6 from Long Beach to El Toro, $4 from Pasadena to Santa Monica, and $5.50 from Pasadena to El Toro. If the Long Beach warehouse has 25 sets and the Pasadena warehouse has 17 sets in stock, how many sets should be shipped from each warehouse to each store to fill the orders at a minimum shipping cost?

An electronics discount chain has a sale on a certain brand of 60-in. high-definition television set. The chain has stores in Santa Monica and El Toro and warehouses in Long Beach and Pasadena. To satisfy rush orders, 16 sets must be shipped from the warehouses to the Santa Monica store, and 19 must be shipped to the El Toro store. The cost of shipping a set is $5 from Long Beach to Santa Monica, $6 from Long Beach to El Toro, $4 from Pasadena to Santa Monica, and $5.50 from Pasadena to El Toro. If the Long Beach warehouse has 25 sets and the Pasadena warehouse has 17 sets in stock, how many sets should be shipped from each warehouse to each store to fill the orders at a minimum shipping cost?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

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Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.
The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.
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In a large microelectronics plant, the assembly cell for circuit boards has a demand for 300 units an hour. Two feeder cells supply partsA and B to the assembly cell (one A and one B for each board). Standard containers that look like divided trays are used. A container will hold 22 As or 13 Bs. It takes 13 minutes to fill up a container with As and 22 minutes to fill up a container with Bs. Transit time to the assembly cell is 5 minutes for both A and B. No safety factor is used. Kanbans to be circulated Between Process A and Assembly cell? Kanbans to be circulated Between Process B and Assembly cell?
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Suppose we schedule shipments to our customers so that we expect each shipment to wait for two days in finished goods inventory (in essence we add two days to when we expect to be able to ship). We do this as protection against system variability to ensure a high on-time delivery service. If we ship approximately 2,000 units each day, how many units do we expect to have in finished goods inventory due to allowing this extra time? If the items are valued at $4.50 each, what is the expected value of this inventory?
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Suppose a Motorboat dealership is dealing in costly motorboats that follow the policy of carrying a few units in stock and ordering for replenishment as soon as a motorboat is sold from the stock. The unit cost of the motorboat is $60,000 and the holding or carrying cost is $5,000 per unit per year. The management of the Motorboat dealership believes that the shortage cost due to waiting for the motorboat is $2,000 per unit short per month. The demand is seen to be Poison distributed with an average rate of 2 units per month and the replenishment lead time can be considered to be exponential with a mean of one month Considering the system as an M/M/s queuing system, find the optimal stock to be carried which can minimize the sum total of carrying and shortage costs.
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Arts N Crafts Industries manufacturers high-end light fixtures, which it sells internationally. The company is responsible for paying for shipping its product to a distributor located in Atlanta, Georgia. Due to the high cost of shipping, the company is considering shipping its products unassembled, but will include detailed assembly instructions in each package. By shipping unassembled products, Arts N Crafts will be able to shrink the size of its cartons and thereby increase the number of products per pallet from 16 (4 rows of 4) to 25 (5 rows of 5). Note that this change will not appreciably increase each product’s 8-pound shipping weight. Furthermore, since individual fixtures will be packed more tightly, they will be less susceptible to damage and easier to handle. Thus, the company expects the freight class to decrease from 85 to 70. Currently the company ships 400 units per week.a. Using Table, assess the impact of the proposed change in packaging on weekly shipping cost.b. How…