3.2 Balance Requirements: Revisit the Goodwin Manufacturing Company (Example 3.4). Imagine a policy requiring that every...

 

 

Transcribed Image Text:

3.2 Balance Requirements: Revisit the Goodwin Manufacturing Company (Example 3.4). Imagine a policy requiring that every shipping route must be used and, in particular, that the shipment volume on any route out of a plant must be at least 20% of the total volume leaving that plant. (a) By how much does the optimal total cost increase as a result of the set of minimum requirements? (b) How many shipment quantities are altered by the imposition of the "20% floor" requirements? 3.4 Distributing a Product: The Lincoln Lock Company manufactures a commercial security lock at plants in Atlanta, Louisville, Detroit, and Phoenix. The unit cost of production at each plant is 35.50, 37.50, 37.25, and $36.25, and the annual capac- ities are 18,000, 15,000, 25,000, and 20,000, respectively. The locks are sold through wholesale distributors in seven locations around the country. The unit shipping cost for each plant-distributor combination is shown in the following table, along with the forecasted demand from each distributor for the coming year. Tacoma San Diego Dallas Denver St. Louis Tampa Baltimore 1.65 1.85 1.75 2.00 2.10 1.80 Atlanta Louisville Detroit Phoenix Demand 2.50 2.75 1.00 1.50 1.50 1.60 1.90 1.85 1.90 2.25 2.00 2.30 2.25 1.85 1.25 1.75 2.00 2.50 2.65 1.90 0.90 1.60 15,400 12,500 6600 5500 11,500 10,500 9,600 (a) Determine the least costly way of shipping locks from plants to distributors. 0) Show the network diagram corresponding to the solution in (a). That is, label each of the arcs in the solution and verify that the flows are consistent with the given information. 3.2 Balance Requirements: Revisit the Goodwin Manufacturing Company (Example 3.4). Imagine a policy requiring that every shipping route must be used and, in particular, that the shipment volume on any route out of a plant must be at least 20% of the total volume leaving that plant. (a) By how much does the optimal total cost increase as a result of the set of minimum requirements? (b) How many shipment quantities are altered by the imposition of the "20% floor" requirements? 3.4 Distributing a Product: The Lincoln Lock Company manufactures a commercial security lock at plants in Atlanta, Louisville, Detroit, and Phoenix. The unit cost of production at each plant is 35.50, 37.50, 37.25, and $36.25, and the annual capac- ities are 18,000, 15,000, 25,000, and 20,000, respectively. The locks are sold through wholesale distributors in seven locations around the country. The unit shipping cost for each plant-distributor combination is shown in the following table, along with the forecasted demand from each distributor for the coming year. Tacoma San Diego Dallas Denver St. Louis Tampa Baltimore 1.65 1.85 1.75 2.00 2.10 1.80 Atlanta Louisville Detroit Phoenix Demand 2.50 2.75 1.00 1.50 1.50 1.60 1.90 1.85 1.90 2.25 2.00 2.30 2.25 1.85 1.25 1.75 2.00 2.50 2.65 1.90 0.90 1.60 15,400 12,500 6600 5500 11,500 10,500 9,600 (a) Determine the least costly way of shipping locks from plants to distributors. 0) Show the network diagram corresponding to the solution in (a). That is, label each of the arcs in the solution and verify that the flows are consistent with the given information.

Answer rating: 100% (QA)

32 a Increase in total cost as a result of set of minimum requirements 17730 14250 3480 ... View the full answer