(1)The BRIGHT Corporation assembles widgets at its two assembly plants located in Indianapolis, Indiana and in Huntsville, Alabama. Each assembly plant produces 25,000 assembled widgets per year. Each widget requires one unit each of three different components. Component 1 is produced in a plant in Salt Lake City, Component 2 is produced in a plant in Jacksonville and Component 3 is produced in a plant in Seattle. Currently all components are shipped full truckload directly from component plants to the assembly plants. The associated distances and travel time is provided below:

Route

Distance (miles)

Lead time (days)

Salt Lake City- Indianapolis

1000

4

Salt Lake City - Huntsville

1000

4

Jacksonville - Indianapolis

2000

6

Jacksonville - Huntsville

2000

6

Seattle - Indianapolis

2000

6

Seattle - Huntsville

2000

6

The truck capacity is 8000 units. The cost for a truck to operate on any route is calculated as 1000 + (4*distance in miles). Thus, for example, the cost for a truck to ship from Salt Lake City to Indianapolis is 1000+(4*1000) = $5000. The holding cost per unit per year at assembly plants is $50/unit/year. All in transit inventory are charged a holding cost of $12.50/unit/year.Assume 300 days of operation in a year. (Hint: use the holding cost h = $50/unit/year for computing the optimum shipment quantity)

(a)Draw a supply chain map indicating all product flows and travel times. (3 points)

(b)A logistics manager at BRIGHT suggests that replacing all shipments with optimal shipments which maintaining the routes would reduce costs. Provide the optimal shipment on each route as well as total supply chain cost to manage the operation. (5 points)