Hansen Controls has been awarded a contract for a large number of control panels. To meet this demand, it will use its existing plants in Houston and Tulsa, and consider new plants in Portland, St. Louis and Lexington. Finished control panels are to be shipped to Denver, Kansas City and Seattle. Pertinent information is given in the table. Denver 1 1- 2- 3- 4- Sources 5- Houston Tulsa Construction Cost Kansas City 2 Portland 500,000 St. Louis 450,000 Lexington 400,000 Demand Shipping Cost to Destination: Capacity Seattle 3 6 6 11 8 10 8 9 8 3 6 7 13 5 10 14 16,000 13,000 13,000 10,000 9,000 14,000 13,000 18,000 We develop a transportation model as an LP that includes provisions for the fixed costs (construction costs in this case) for the three new plants. The solution of this model would reveal which plants to build and the optimal shipping schedule. Let xij = the number of panels shipped from source i to destination j |y₁ = 1 if plant i is built, = 0 otherwise (1 = 3, 4, 5) The constraint x21 + x22 + x23 <= 13,000*y3 represents which of the following? Group of answer choices Supply from Tulsa Demand at Kansas City None of the others. Supply from Houston Supply from Portland
Hansen Controls has been awarded a contract for a large number of control panels. To meet this demand, it will use its existing plants in Houston and Tulsa, and consider new plants in Portland, St. Louis and Lexington. Finished control panels are to be shipped to Denver, Kansas City and Seattle. Pertinent information is given in the table. Denver 1 1- 2- 3- 4- Sources 5- Houston Tulsa Construction Cost Kansas City 2 Portland 500,000 St. Louis 450,000 Lexington 400,000 Demand Shipping Cost to Destination: Capacity Seattle 3 6 6 11 8 10 8 9 8 3 6 7 13 5 10 14 16,000 13,000 13,000 10,000 9,000 14,000 13,000 18,000 We develop a transportation model as an LP that includes provisions for the fixed costs (construction costs in this case) for the three new plants. The solution of this model would reveal which plants to build and the optimal shipping schedule. Let xij = the number of panels shipped from source i to destination j |y₁ = 1 if plant i is built, = 0 otherwise (1 = 3, 4, 5) The constraint x21 + x22 + x23 <= 13,000*y3 represents which of the following? Group of answer choices Supply from Tulsa Demand at Kansas City None of the others. Supply from Houston Supply from Portland
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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