Question: operations research ,please solve using METLAB CASES CASE 9.1 Shipping Wood to Market Alabama Atlantic is a lumber company that has three sources of wood

operations research ,please solve using METLAB
operations research ,please solve using METLAB
CASES CASE 9.1 Shipping Wood to Market Alabama Atlantic is a lumber company that has three sources of wood and five markets to be supplied. The an- nual availability of wood at sources 1, 2, and 3 is 15, 20, and 15 million board feet, respectively. The amount that can be sold annually at markets 1, 2, 3, 4, and 5 is 11, 12, 9, 10, and 8 million board feet, respectively. Unit Cost by Rail ($1,000's) Market Unit Cost by Ship ($1,000's) Market Source 1 4 5 1 2 1 61 72 45 55 66 31 38 24 35 2 69 78 60 49 56 36 43 28 24 31 3 59 66 63 61 47 - 33 36 32 26 The capital investment (in thousands of dollars) in ships re- quired for each million board feet to be transported annually by ship along each route is given as follows: Investment for Ships ($1,000's) Market Source 1 2 3 5 1 275 303 238 285 293 318 270 250 265 3 283 275 268 240 Option 3: Ship by either rail or water, depending on which is less expensive for the particular route. Considering the expected useful life of the ships and the time value of money, the equivalent uniform annual cost of these investments is one-tenth the amount given in the table. The objective is to determine the overall shipping plan that minimizes the total equivalent uniform annual cost (includ- ing shipping costs). Present your results for each option. Compare. Finally, consider the fact that these results are based on current shipping and investment costs, so the decision on You are the head of the OR team that has been assigned the task of determining this shipping plan for each of the following three options. the option to adopt now should take into account manage- ment's projection of how these costs are likely to change in the future. For each option, describe a scenario of future cost changes that would justify adopting that option now. Option 1: Continue shipping exclusively by rail. Option 2: Switch to shipping exclusively by water (except where (Note: Data files for this case are provided on the book's only rail is feasible). website for your convenience.) In the past the company has shipped the wood by train. However, because shipping costs have been increasing, the al- temative of using ships to make some of the deliveries is be- ing investigated. This alternative would require the company to invest in some ships. Except for these investment costs, the shipping costs in thousands of dollars per million board feet by rail and by water (when feasible) would be the following for each route

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