Answered: Question 2. Waste Management's… | bartleby

Practical Management Science

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section5.5: Shortest Path Models

Problem 30P

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Question

Please answer question 2

Problem Set 8
Note: You will find the Example videos in the module very helpful in answering these
questions. Please type in the space provided.
Question 1. Caliber Yachts in St Petersburg is going into production with a new model. Current
facilities are insufficient to handle the increased workload, so the company is considering three
alternatives, A (new location), B (subcontract), and C (expand existing facilities).
●
Alternative A, new location, would involve substantial fixed costs but relatively low
variable costs: fixed costs would be $150,000 per year, and variable costs would be $500
per boat.
Alternative B, subcontracting would involve a cost per boat of $2,500
Alternative C, expansion would require an annual fixed cost of $40,000 and a variable
cost of $1,250 per boat
a. Subcontracting will be the
best choice if output is
(select less than/greater
than):
b. A new location will be the
best choice if output:
NB: Make sure you are
comparing the correct
alternatives to calculate your
answer
c. What other factors might
you consider when
choosing between
expansion and
subcontracting?
Less than
Less Than

Question 2. Waste Management's Hazardous Waste Division, wants to minimize the shipping
cost for shipments to a disposal center from five receiving stations it operates. Given the
locations of the receiving stations as shown below, determine the location of the disposal center
rounded to the nearest whole number.
Y Coordinate
8
7
6
2
1
0
1
2
D, 2, 6
3
C, 4, 7
• B, 4, 1
4
Coordinates
X
5 6
X Coordinate
Y
7
• E, 8, 7
8
1
A, 10, 5.
Select Value
1
9
10
11

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