c) Jay Calahi is to supply gravel for projects located in three different sites. He has three plants, likewise, located in three different sites. The requirements at these three sites are 72, 102 & 41 truckloads for projects A, B & C respectively. The plant capacities are 56, 82 & 77 for plants W, X & Y respectively. Costs per truckload are given in the table below: Cost per Truckload То В From To A То с P 4 P 8 P 8 16 24 16 8. 16 24 Required: Determine the optimal distribution costs
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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?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?Problem 21-9 (Algo) Semans is a manufacturer that produces bracket assemblies. Demand for bracket assemblies (X) is 131 units. The following is the BOM in indented form: ITEM X A B C DESCRIPTION Bracket assembly wall board Hanger subassembly D Hanger casting E Ceramic knob Rivet head screw F Metal tong G Plastic cap Item Inventory X 23 A 18 B5 Below is a table indicating current inventory levels: 55 USAGE 1 C 25 4 2 2 1 5 2 D 200 170 1,100 G 90
- The Ace Manufacturing Company has orders for three similar products. Orders Product (units) Min A s.t. B с 1 2 Three machines are available for the manufacturing operations. All three machines can produce all the products at the same production rate. However, due to varying defect percentages of each product on each machine, the unit costs of the products vary depending on the machine used. Machine capacities for the next week and the unit costs are shown below. Machine 3 A A B B c с 1 Product 2 3 Machine 2 Capacity 2,000 Machine 1 Capacity 600 1,300 Machine 3 Capacity Product A Orders Capacity (units) Product B Orders 1,700 1,600 1,000 1 $1.00 $1.30 $1.10 Use the transportation model to develop the minimum cost production schedule for the products and machines. (a) Show the linear programming formulation. (Let XA₁ be the number of units of product A produced by machine 1, X;; be the number of units of product i produced by machine j, etc.) Machine $1.20 $1.40 $1.00 2 $0.90 $1.20 $1.20…DJA Trucking Co. owns several truck used in hauling crushed stones from three different plants to three road projects in Pampanga. The contractor in charge of the project gives the company the ff. Projec A B C F/T X Y Z Requirement per week 150 175 140 A B P100 P200 150 175 200 500 C P75 225 125 Plants X Y Z Available per week 145 160 160 Compute for the optimal hauling schedule and the total transportation costs. (Use stepping stone and Least Cost Method (minimum entry method))Using the information in Problem(The demand for subassembly Sis 100 units in week 7.Each unit ofS requires 1 unit ofT and 2 units ofU. Each unit ofT requires I unit ofY, 2 units ofW, and 1 unit of X. Finally, eachunit of U requires 2 units of Y and 3 units of Z. One firm manufacturesall items. It takes 2 weeks to make S, 1 week to make T, 2 weeks to make U, 2 weeks to make Y, 3 weeks to make W,I week to make X, 2 weeks to make Y, and I week to make Z.a) Construct a product structure. Identify all levels, parents, and components.b) Prepare a time-phased product structure. ), construct agross material requirements plan.
- Using the information in Problem (The demand for subassembly Sis 100 units in week 7.Each unit ofS requires 1 unit ofT and 2 units ofU. Each unit ofT requires I unit ofY, 2 units ofW, and 1 unit of X. Finally, eachunit of U requires 2 units of Y and 3 units of Z. One firm manufacturesall items. It takes 2 weeks to make S, 1 week to make T, 2 weeks to make U, 2 weeks to make Y, 3 weeks to make W,I week to make X, 2 weeks to make Y, and I week to make Z.a) Construct a product structure. Identify all levels, parents, and components.b) Prepare a time-phased product structure. ), construct a netmaterial requirements plan using the following on-hand inventory.A company that manufactures paving material for driveways and parking lots expects the following demand for its product for the next four weeks.Week number 1 2 3 4Material (tons) 40 80 60 70The company’s labor and machine standards and available capacities are as follows.Labor MachineProduction standard (hours per ton) 4 3Weekly production capacity (hours) 300 200 a. Determine the capacity utilization for labor and machine for each of the four weeks.b. In which weeks do you foresee a problem? What options would you suggest to resolve anyproblems? What costs are relevant in making a decision on choosing an option?The Ace Manufacturing Company has orders for three similar products. Product Min A s.t. B C 1 Machine 2 Three machines are available for the manufacturing operations. All three machines can produce all the products at the same production rate. However, due to varying defect percentages of each product on each machine, the unit costs of the products vary depending on the machine used. Machine capacities for the next week and the unit costs are shown below. 3 A A B Product B с 4 2 3 Machine 1 Capacity Machine 2 Capacity Machine 3 Capacity Product A Orders Product B Orders Orders (units) Product C Orders 2,100 ≥ 0 for all i, j. 700 1,200 Capacity (units) 1,400 1,400 1,400 1 Use the transportation model to develop the minimum cost production schedule for the products and machines. (a) Show the linear programming formulation. (Let XA1 be the number of units of product A produced by machine 1, X;; be the number of units of product i produced by machine j, etc.) Xij Machine 2 $1.00 $1.30…
- LMNO Gaskets has formulated a production plan for a product to meet demand over the upcoming four quarters. Demand in each of the four quarters and production, overtime, and subcontracting capacities are reported in the table below, in addition to the feasible production plan. The relevant costs are: • Regular time production cost is $10/unit. Overtime production cost is $14/unit. Subcontracting cost is $18/unit Inventory is held at a cost of $1/unit/quarter. • Units may be backordered at a cost of $4/unit/quarter. Production Resource Regular Time Q1 Overtime Q1 Subcontract Q1 Regular Time Q2 Overtime Q2 Subcontract Q2 Regular Time Q3 Overtime Q3 Subcontract Q3 Demand in Quarter Demand in Quarter Q2 0 20 0 550 Q1 550 230 0 0 0 0 40 40 0 860 250 470 0 40 0 1330 What is the inventory cost for the year? What is the backorder cost for the year? What is the total cost for the year? Q3 0 0 0 0 0 30 510 160 0 700 What is the total overtime production cost for the year? Capacity 550 250 500…Tuff-Rider, Inc., manufactures touring bikes and mountain bikes in a variety of frame sizes, colors, and component combinations. Identical bicycles are produced in lots of 110. The projected demand, lot size, and time standards are shown in the following table: i Item Demand forecast Lot size Standard processing time Standard setup time Touring 4,000 units/year 130 units 0.20 hour/unit 2 hours/lot Mountain 10,000 units/year 110 units 0.50 hour/unit 3 hours/lot The shop currently works 8 hours a day, 5 days a week, 48 weeks a year. It operates five workstations, each producing one bicycle in the time shown in the table. The shop maintains a 15 percent capacity cushion. How many workstations will be required next year to meet expected demand without using overtime and without decreasing the firm's current capacity cushion? The number of workstations required next year is. (Enter your response rounded up to the next whole number.)Jody of Jody’s Custom Tailoring is considering expandingher growing business. Th e question is whether to expand with abigger facility than she needs or with a small facility, knowing thatshe will have to reconsider expanding in three years.Jody has estimated the following chances for demand:• Th e likelihood of demand being high is 0.50.• Th e likelihood of demand being low is 0.50. She has also estimated profi ts for each alternative:• Large expansion has an estimated profi tability of either$200,000 or $100,000, depending on whether demand turnsout to be high or low.• Small expansion has a profi tability of $80,000, assuming thatdemand is low.• Small expansion with an occurrence of high demand wouldrequire considering whether to expand further. If thebusiness expands at that point, the profi tability is expectedto be $120,000. If it does not expand further, the profi tabilityis expected to be $70,000.Draw a decision tree and solve it. What should Jody’s CustomTailoring do?