Project 17: Shipping Costs One of the main products of the Fairway Woods Company is custom-made...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Project 17: Shipping Costs One of the main products of the Fairway Woods Company is custom-made golf clubs. The clubs are manufactured at three plants (Denver, Colorado; Phoenix, Arizona; and Dallas, Texas) and are then shipped by truck to five distribution warehouses in Sacramento, California; Salt Lake City, Utah; Chicago, Illinois; Albuquerque, New Mexico; and New York City, New York. Since shipping costs are a major expense, management has begun an analysis to determine ways to reduce them. For the upcoming golf season, the output from each manufacturing plant and how much each warehouse will require to satisfy its customers have been estimated. The CIO from Fairway Woods Company has created a data file for you, AYK17_Data.xlsx, of the shipping costs from each manufacturing plant to each warehouse as a baseline analysis. Some busi- ness rules and requirements you should be aware of include: ☐ The problem presented, which involves the shipment of goods from three plants to five regional warehouses. wwledge Goods, which can be shipped from any plant to any warehouse, cost more to ship over long distances than over short distances. 1. Your goal is to minimize the costs of shipping goods from production plants to warehouses, thereby meeting the demand from each metropolitan area while not exceeding the supply avail- able from each plant. To complete this project, it is recommended that you use the Solver function in Excel to assist with the analysis. 2. Specifically, you want to focus on: Minimizing the total shipping costs. Total shipped being less than or equal to supply at a plant. Total shipped to warehouses being greater than or equal to the warehouse demand. Number to ship being greater than or equal to 0. Data file: AYK17_Data.xlsx A B C D 1 Fairways Woods Company Shipping Analysis 2 3 4 5 Plants 6 Denver 7 Phoenix 8 Dallas 9 Totals: 10 11 123 111 12 13 21 22 23 0 0 14 Demands by Whse --> 15 Plants 16 Denver 17 Phoenix 18 Dallas 19 Shipping: 20 Number to ship from plant to warehouse: Total Sacramento Salt Lake Chicago Albeq Supply 310 260 280 $83 $10 $6 $3 $19 $8 EA 180 80 200 160 Shipping costs from plant to warehouse: $6 $4 65 $5 EA CA un 00 E $4 $17 191 LL 0 $15 355 6353 $3 $5 0 $13 G New York 220 4539 $6 $19 0 H Project 17: Shipping Costs One of the main products of the Fairway Woods Company is custom-made golf clubs. The clubs are manufactured at three plants (Denver, Colorado; Phoenix, Arizona; and Dallas, Texas) and are then shipped by truck to five distribution warehouses in Sacramento, California; Salt Lake City, Utah; Chicago, Illinois; Albuquerque, New Mexico; and New York City, New York. Since shipping costs are a major expense, management has begun an analysis to determine ways to reduce them. For the upcoming golf season, the output from each manufacturing plant and how much each warehouse will require to satisfy its customers have been estimated. The CIO from Fairway Woods Company has created a data file for you, AYK17_Data.xlsx, of the shipping costs from each manufacturing plant to each warehouse as a baseline analysis. Some busi- ness rules and requirements you should be aware of include: ☐ The problem presented, which involves the shipment of goods from three plants to five regional warehouses. wwledge Goods, which can be shipped from any plant to any warehouse, cost more to ship over long distances than over short distances. 1. Your goal is to minimize the costs of shipping goods from production plants to warehouses, thereby meeting the demand from each metropolitan area while not exceeding the supply avail- able from each plant. To complete this project, it is recommended that you use the Solver function in Excel to assist with the analysis. 2. Specifically, you want to focus on: Minimizing the total shipping costs. Total shipped being less than or equal to supply at a plant. Total shipped to warehouses being greater than or equal to the warehouse demand. Number to ship being greater than or equal to 0. Data file: AYK17_Data.xlsx A B C D 1 Fairways Woods Company Shipping Analysis 2 3 4 5 Plants 6 Denver 7 Phoenix 8 Dallas 9 Totals: 10 11 123 111 12 13 21 22 23 0 0 14 Demands by Whse --> 15 Plants 16 Denver 17 Phoenix 18 Dallas 19 Shipping: 20 Number to ship from plant to warehouse: Total Sacramento Salt Lake Chicago Albeq Supply 310 260 280 $83 $10 $6 $3 $19 $8 EA 180 80 200 160 Shipping costs from plant to warehouse: $6 $4 65 $5 EA CA un 00 E $4 $17 191 LL 0 $15 355 6353 $3 $5 0 $13 G New York 220 4539 $6 $19 0 H
Expert Answer:
Related Book For
Financial Accounting for Decision Makers
ISBN: 978-0273763451
6th Edition
Authors: Peter Atrill, Eddie McLaney
Posted Date:
Students also viewed these finance questions
-
One of the main uses of the linear -olefins prepared by oligomerization of ethylene is in the preparation of linear low-density polyethylene. Linear low-density polyethylene is a copolymer produced...
-
One of the main uses of the "linear -olefins" prepared by oligomerization of ethylene is in the preparation of linear low-density polyethylene. Linear low-density polyethylene is a copolymer produced...
-
One of the main rationales for using a job order costing system is to achieve profitability by charging a price for each job that is proportionate to the related costs. The fundamental underlying...
-
If a pure discount three-year bond sells for $782 and a pure discount four-year bond sells for $733, what is the expected 12-month interest rate in three years time? Both have a face value of $1000....
-
Consider the example of the Stackelberg model discussed in the text. Firms choose quantities, with firm A moving first, and then firm B. As in the text, market demand is given by Q 120 P and...
-
Price-sensitive shoppers are one of the most fickle target groups. What makes them difficult to convert to loyal customers? How could you retain them?
-
What qualifications does an individual need to serve a summons and complaint?
-
As financial manager of Britwell Inc., you are investigating a possible acquisition of Salome. You have the basic data given in the following table. You estimate that investors expect a steady growth...
-
Develop written responses for the Application Exercise below outlining three buying situations. Overview Assume the role of marketing manager for a large firm that produces stain resistant fabrics...
-
Let us consider the a small village. The power network of the village is shown in Figure 1. Load demands at Zone A, Zone B and Zone C, are 5MVA (0.95pf lagging), 7MVA (0.94pf lagging) and 7MVA...
-
Based on the following code, what is the value of y if x = 5? int x, y; if (x < 4) y = 2; else if (x 4) { if (x > 7) y = 4; else } else y = 6; y = 8;
-
Question 17 5.55 pts Use the information in the schedule of the components of Facebook's deferred tax assets and liabilities to estimate the difference in depreciation expense taken for tax purposes...
-
NICO had net fixed assets of $2,500,000 at the end of 2020 and $1,950,000 at the end of 2019. In addition, SBM had a depreciation expense of $300,000 during 2020 and $180,000 during 2019. Using this...
-
In an inertial frame of reference, a series of experiments is conducted. In each experiment, two or three forces are applied to an object. The magnitudes of these forces are given below. No other...
-
Emma Corp. has assets with a market value of $600 million, $50 million of which are cash. It has debt of $250 million, and 50 million shares outstanding. Assume perfect capital markets. What is its...
-
When information is presented in the form of a bar graph or time-series graph, you could get more exact values if all the data were just listed out in table form. Then why not always do that? Why...
-
A multi-stage axial flow compressor delivers a total pressure ratio of 5, the stagnation temperature at entry is 300 K and the overall isentropic efficiency is 80%. At mean diameter of each stage:...
-
Refrigerant-134a enters an adiabatic compressor as saturated vapor at 120 kPa at a rate of 0.3 m3/min and exits at 1-MPa pressure. If the isentropic efficiency of the compressor is 80 percent,...
-
The following information was extracted from the financial statements of I. Ching (Booksellers) plc for the year to 31 December 2009: m Finance...
-
Why do we need accounting rules?
-
The following is a list of the assets and claims of Crafty Engineering Ltd at 30 June last year: 000 Trade payables....................................................86 Motor...
-
A reversible process is a process (a) Which proceeds with no driving force (b) Which takes place spontaneously (c) Which is quasi-static (d) Which is frictional process.
-
At constant temperature and pressure, the free energy for a chemically reacting system at equilibrium is (a) Minimum (b) Maximum (c) Can not be predicted (d) None of these.
-
The operation of a throttling device follows the (a) Zeroth law of thermodynamics (b) First law of thermodynamics (c) Second law of thermodynamics (d) Third law of thermodynamics.
Study smarter with the SolutionInn App