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    Chapter 14 Examples

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    Abdulaziz Al-amro
    General Appliance Corporation produces refrigerators at two plants and needs to ship them to four distribution centers to meet demand. The document provides shipping costs between each plant and distribution center, as well as the production capacity and demand for each location. The company needs to determine the optimal shipping plan to minimize total transportation costs while meeting demand and not exceeding production capacity.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Chapter 14 Examples

    Uploaded by

    Abdulaziz Al-amro
    119 views16 pages
    General Appliance Corporation produces refrigerators at two plants and needs to ship them to four distribution centers to meet demand. The document provides shipping costs between each plant and distribution center, as well as the production capacity and demand for each location. The company needs to determine the optimal shipping plan to minimize total transportation costs while meeting demand and not exceeding production capacity.

    Original Title

    Chapter 14 Examples(1)

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    General Appliance Corporation produces refrigerators at two plants and needs to ship them to four distribution centers to meet demand. The document provides shipping costs between each plant and distribution center, as well as the production capacity and demand for each location. The company needs to determine the optimal shipping plan to minimize total transportation costs while meeting demand and not exceeding production capacity.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    119 views16 pages

    Chapter 14 Examples

    Uploaded by

    Abdulaziz Al-amro
    General Appliance Corporation produces refrigerators at two plants and needs to ship them to four distribution centers to meet demand. The document provides shipping costs between each plant and distribution center, as well as the production capacity and demand for each location. The company needs to determine the optimal shipping plan to minimize total transportation costs while meeting demand and not exceeding production capacity.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 16

    Data

    Dobbie Loom Reqular


    Demand Loom Mill Cost Outsourcing
    Fabric (yards) Capacity Capacity ($/yard) Cost ($/yard)
    (yards/hour)
    (yards/hour)
    1 45000 4.7 0 0.65 0.85
    2 76500 5.2 5.2 0.61 0.75
    3 10000 4.4 4.4 0.5 0.65
    Total Capacity 6,552 32,760

    1 45000 0.2127659574 0 $ 0.65 $ 0.85


    2 76500 0.1923076923 0.192307692 $ 0.61 $ 0.75
    3 10000 0.2272727273 0.227272727 $ 0.50 $ 0.65
    Total Capacity 6,552 32,760

    Model
    Total Reqular
    Fabric Products Dobbie Loom Loom Outsourcing Total Cost

    1 45000 30,794.40 - 14,205.60 $ 32,091.12


    2 76500 - 76,500.00 - $ 46,665.00
    3 10000 - 10,000.00 - $ 5,000.00
    Total 6,552 16,984

    Output Process
    Total Cost $ 83,756.12
    “Camm Textiles has a mill that p
    order basis. The mill operates o
    manager is about the type of lo
    coming quarter (13 weeks) to m
    exceed the capacity of the loom
    dobbie and regular. Dobbie loom
    only looms that can weave certa

    The mill has 15 regular looms an


    to the finishing department and
    the mill because of limited capa
    finished at the mill, and sold at
    which looms to use to process t
    which fabrics to buy externally”
    Chart Title

    Outsourcing

    R
    R
    Reqular Loom R

    Dobbie Loom

    - 20,000.00 40,000.00 60,000.00 80,000.00 100,000.00


    les has a mill that produces three types of fabrics on a make-to-
    The mill operates on a 24/7 basis. The key decision facing the plant
    bout the type of loom needed to process each fabric during the
    ter (13 weeks) to meet demands for the three fabrics and not
    apacity of the looms in the mill. Two types of looms are used:
    egular. Dobbie looms can be used to make all fabrics and are the
    hat can weave certain fabrics, such as plaids.

    15 regular looms and 3 dobbie looms. after weaving, fabrics are sent
    ng department and then sold. any fabrics that cannot be woven in
    use of limited capacity will be purchased from an external supplier,
    he mill, and sold at the selling price. In addition to determining
    to use to process the fabrics, the manager also needs to determine
    sitle
    to buy externally” Chart Title
    35,000

    30,000

    25,000
    Row 20
    Row 19 20,000
    Row 18
    15,000

    10,000

    5,000

    00.00 80,000.00 100,000.00 6,552 16,984 6,552 32,760


    Microsoft Excel 16.41 Feasibility Report
    Worksheet: [3 Models copy.xlsx]BG Seed Co.
    Report Created: 3/21/21 10:43:12 AM

    Constraints Which Make the Problem Infeasible


    Cell Name Cell Value Formula Status Slack
    $C$26 Sum Pounds 1 $C$26=1 Binding 0
    $F$24 Fat Total 15% $F$24>=$D$14 Violated -0.0010902256
    $F$25 Fiber Total 14% $F$25<=$E$14 Binding 0
    Data

    Ingrediant Protein % Fat % Fiber % Cost $/Ib

    Sunflower Seeds 16.9% 26.0% 29.0% $ 0.22


    White Millet 12.0% 4.1% 8.3% $ 0.19
    Kibble Com 8.5% 3.8% 2.7% $ 0.10
    Oats 15.4% 6.3% 2.4% $ 0.10
    Cracked Com 8.5% 3.8% 2.7% $ 0.07
    Wheat 12.0% 1.7% 2.3% $ 0.05
    Safflower 18.0% 17.9% 28.8% $ 0.26
    Canary Grass Seed 11.9% 4.0% 10.9% $ 0.11
    Requirement 13% 15% 14%

    Model
    Ingrediant Pounds
    Sunflower Seeds 0
    White Millet 0
    Kibble Com 0
    Oats 0
    Cracked Com 0 Output Total
    Wheat 0 Protein 0%
    Safflower 0 Fat 0%
    Canary Grass Seed 0 Fiber 0%
    Sum 0 Cost 0
    “The BG Seed Company specializes in food products for birds
    household pets. In developing a new birdseed mix, company
    specified that the mixture should contain at least 13% protei
    no more than 14% fiber. The percentages of each of these nu
    types of ingredients that can be used in the mix are given in
    the wholesale cost per pound. What is the minimum-cost mi
    the stated nutritional requirements?”
    d products for birds and other
    seed mix, company nutritionists have
    at least 13% protein and 15% fat and
    of each of these nutrients in eight
    he mix are given in Table, along with
    e minimum-cost mixture that meets
    Data
    Fund Expected Annual Return Risk Measure
    1. Innis low-priced stock fund 8.13% 10.57
    2. Innis multinational fund 9.02% 13.22
    3. Innis mid-cap stock fund 7.56% 14.02
    4. Innis mortgage fund 3.62% 2.39
    5. Innis income equity fund 7.79% 9.30
    6. Innis balanced fund 4.40% 7.61
    Return Condtion 5% Total Fund

    Model
    Fund Amount
    1. Innis low-priced stock fund
    2. Innis multinational fund SAR 50,000.00
    3. Innis mid-cap stock fund
    4. Innis mortgage fund SAR 200,000.00
    5. Innis income equity fund SAR 66,371.68
    6. Innis balanced fund SAR 183,628.32
    Total Investment SAR 500,000.00
    “Innis Investments is a small, family-owne
    financial portfolios. The company manage
    Lower Bound Upper Bound Special has acquired $500,000 from an inheritanc
    200,000.00
    50,000.00 200,000.00
    200,000.00
    “Innis Investments uses a proprietary algo
    200,000.00 its funds based on the historical volatility o
    200,000.00 200,000.00 volatility, the greater the risk. The compan
    50,000.00 200,000.00 $200,000 be invested in any individual fun
    500,000.00 each of the multinational and balanced fu
    in income equity and balanced funds be a
    $200,000. The client would like to have an
    like to minimize risk. What portfolio would

    Inc + Bal 250,000.00


    Return 5%
    Risk 6.31
    all, family-owned business that manages personal
    ompany manages six mutual funds and has a client that
    om an inheritance.

    proprietary algorithm to establish a measure of risk for


    torical volatility of the investments. The higher the
    risk. The company recommends that no more than
    ny individual fund, that at least $50,000 be invested in
    and balanced funds, and that the total amount invested
    nced funds be at least 40% of the total investment, or
    d like to have an average return of at least 5% but would
    t portfolio would achieve this?”
    Data
    Distribution Center
    Plant Cleveland Baltimore Chicago Phoenix
    Marietta $ 12.60 $ 14.35 $ 11.52 $ 17.58
    Minneapolis $ 9.75 $ 16.26 $ 8.11 $ 17.92
    Demand 150 350 500 1,000
    “General appliance Corporation (GaC) produces refrigera
    Georgia, and Minneapolis, Minnesota. They ship them to
    Capacity Cleveland, baltimore, Chicago, and Phoenix. The accoun
    1,200 departments have provided the information in the Table
    800 cost of shipping between any plant and distribution cent
    planning period, and distribution center demands. GaC’s
    problem of determining how much to ship between eac
    minimize the total transportation cost, not exceed availa
    demand”
    produces refrigerators at two plants: Marietta,
    They ship them to major distribution centers in
    enix. The accounting, production, and marketing
    ation in the Table below, which shows the unit
    d distribution center, plant capacities over the next
    r demands. GaC’s supply chain manager faces the
    hip between each plant and distribution center to
    not exceed available capacity, and meet customer

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