The Neale Company has four distribution centers (A, B, C, and D) that require monthly shipments of 30,000, 24,000, 36,000, and 24,000 gallons of diesel fuel per month, respectively. Three wholesalers (1, 2, and 3) are willing to supply up to 36,000, 48,000 and 30,000 gallons, respectively. Total costs (in $) for both shipping and price per gallon follow. A transportation method tableau is provided below. WHOLE-SALER 1 2 3 DISTRIBUTION CENTER B A 2.20 1.90 2.30 C 2.00 2,00 2.30 2.00 1.90 2.30 D 2.00 2.20 2.00 REQUIREMENTS 30,000 24,000 36,000 24,000 CAPACITY 36,000 48,000 30,000
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- A company's distribution and warehouse expenses do NOT include which one of the following? a) The costs of processing, boxing, packaging, handling, and shipping orders to footwear retailers and -online buyers b)A standard import tariff of $4.00 per pair on any pairs imported from the company's foreign production facilities--tariffs are due and payable at the port of entry rather than when the pairs are sold c)Annual leasing and maintenance fees of $1 million for each of the company's four distribution centers; however, such expenses fall to 5 times the number of pairs sold when warehouse volume in any region is less than 200,000 pairs annually (should company managers decide to abandon selling footwear in a geographic region, leasing and maintenance costs will fall to $0 (resuming if/when sales begin again) d)The inventory costs of carrying unsold pairs over from the prior year ($0.50 per pair on required inventrory and $1 per pair on additional unsold pairs) e)Per pair freight…Cost tradeoff exists between transportation and inventory Select one: a. True b. FalseIkagami Retail receives shipments of a particular product from Booker Store and PaulEnterprises. Let x = number of units of product received from Booker Store y = number of units of products received from Paul Enterprises Requirement: a. Write an expression for the total number of units of products received by Ikagami Retail.b. Shipments from Booker Store cost P20 per unit, and shipments from Paul Ent cost P25 per unit. Develop an objective function representing the total cost of shipments to Ikagami.c. Assuming a monthly demand at Ikagami is 5,000 units, develop a constraint that requires 5,000 units to be shipped to Ikagami.d. No more than 4,000 units can be shipped from Booker, and no more than 3,000 from Paul. Develop constraints to model this situation.e. Of course, negative amounts cannot be shipped. Combine the objective function and constraints developed to state a mathematical model for satisfying the demand at Ikagami at minimum cost.
- Ikagami Retail receives shipments of a particular product from Booker Store and PaulEnterprises. Let x = number of units of product received from Booker Store y = number of units of products received from Paul Enterprises Requirement: a. Write an expression for the total number of units of products received by Ikagami Retail.b. Shipments from Booker Store cost P20 per unit, and shipments from Paul Ent cost P25 per unit. Develop an objective function representing the total cost of shipments to Ikagami.c. Assuming a monthly demand at Ikagami is 5,000 units, develop a constraint that requires5,000 units to be shipped to Ikagami.Explain the significance of inventory in logistics and supply chain management.The Objectives of Supply Chain Management is to be cost effective In Inbound Transportation Cost In Outbound Transportation Cost Across the entire Chain Od. In Inventory Management
- Explain what is ABC inventory classification system and indicate it's advantages?Wagner Company supplies electric motors to ATK Electronic on adelivered price basis. Wagner has responsibility for providingtransportation. The traffic manager has three transportation servicechoices for delivery: rail, piggyback, and truck.ATK purchases 50,000 units per year at a delivered contract price of$500 per unit. Inventory holding cost for both companies is 30percent per year. Calculate total related costs for each mode oftransportation. Transportation Mode Transit Time,Days Fix Rate, $/delivery Variable rate, $/Unit Shipment size, units 1)Rail 16 10.000 25.00 10.000 2)Piggyback 10 15.000 40.00 8.000 3)Truck-Truck load 4 1.000 75.00 5.000 4)Truck-Less than truck load 4 500 85.00 1.0009. The Sta. Maria Bar buys draft beer by the barrel from a local distributor. The bar has an annual demand of 900 barrels, which it purchases at a price of $205 per barrel. The annual carrying cost is $24.60, and the cost per order is $160. The distributor has offered the bar a reduced price of $190 per barrel if it will order a minimum of 300 barrels. What is the cost difference if the bar takes the discount?
- What is carrying cost and provide an example of it.Zhou Bicycle Company Zhou Bicycle Company (ZBC), located in Seattle, is a whole- sale distributor of bicycles and bicycle parts. Formed in 1981 by University of Washington Professor Yong-Pin Zhou, the firm's primary retail outlets are located within a 400-mile radius of the distribution center. These retail outlets receive the order The company distributes a wide variety of bicycles. The most popular model, and the major source of revenue to the company, is the Air Wing. ZBC receives all the models from a single manufacturer in China, and shipment takes as long as 4 weeks from the time an order is placed. With the cost of com- munication, paperwork, and customs clearance included, ZBC estimates that each time an order is placed, it incurs a cost of $65. The purchase price paid by ZBC, per bicycle, is roughly 60% of the suggested retail price for all the styles available, and the inventory carrying cost is 1% per month ( 12% per year) of the purchase price paid by ZBC. The retail price…Costco launched the warehouse shopping model when it opened its first location in 1976, requiring customers to purchase an annual membership in order to shop at the store.65 The first location was called Price Club and initially sold only to small businesses. More than 40 years later, Costco is one of the nation’s top retailers and the nation’s largest membership warehouse chain. They operate more than 700 warehouses located around the world, with more than 80 million members and over $116 billion in annual revenues. In addition to demonstrating steady growth throughout its history, the company consistently performs better than competitors. For example, Costco’s sales per square foot are nearly 70 percent higher than their closest competitor, Sam’s Club. So how has Costco achieved this level of success? Experts agree that Costco’s simple strategy has allowed the company to persist, even in challenging times. In fact, some say Costco has the best business model in the retail industry.…