A company which assembles garden furniture obtains its components from three suppliers. Supplier A provides all the
Question:
A company which assembles garden furniture obtains its components from three suppliers. Supplier A provides all the boxes and packaging material; supplier B provides all metal components; and supplier C provides all plastic components. Supplier A sends one truck load of the materials per week to the factory and is located at the position (1,1) on a grid reference which covers the local area. Supplier B sends four truck loads of components per week to the factory and is located at point (2,3) on the grid. Supplier C sends three truck loads of components per week to the factory and is located at point (4,3) on the grid. After assembly, all the products are sent to a warehouse which is located at point (5,1) on the grid. Assuming there is little or no waste generated in the process, where should the company locate its factory so as to minimize transportation costs? Assume that transportation costs are directly proportional to the number of truck loads of parts, or finished goods, transported per week.
Step by Step Answer:
Operations Management
ISBN: 9780273708476
5th Edition
Authors: Nigel Slack, Stuart Chambers, Robert Johnston