Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

Leading computer hardware manufacturer, Dull Inc, is expanding its distribution network and planning to open a number of new warehouses to service three retail regions. The three warehouse sites under consideration, A, B & C, have the following estimated monthly fixed costs $50,000, $45,000 and $47,500 respectively. The three retail centres have anticipated demands as follow: region 1 requires 950 units per month, region 2 requires 850 units per month, and region 3 requires 650 units per month. The table below shows the costs of sending 1 item from each warehouse to the three regions and the quantity each warehouse can supply. The company wishes to meet monthly demands at minimum cost, subject to following constraints:

a) At most 2 warehouses must be opened.

b) If warehouse B is opened, then warehouse A must also be opened.

Formulate an LP that can be used to minimise the monthly costs of meeting demand. Use an if-then constraint in the formulation of the constraint (b) above. Find the optimal solution using POM/QM and state the outcomes.

 

Supply

Region 1

Region 2

Region 3

Warehouse A

 

1200

21

16

17

Warehouse B

 

900

13

24

10

Warehouse C

1350

25

21

20

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M9856318

Have any Question?


Related Questions in Operation Management

Identify an existing start-up business new venture and

Identify an existing start-up business/ new venture and assess their product/ service and pricing strategies. Product/ Service Strategy: The uniqueness of Product/ Services What value the product offer to consumers? Asse ...

You are the president of high performing division and the

You are the president of high performing division and the Chief Executive Officer tells you in order increase the profits by another $260M over forecast; you need to layoffs 9 people. And also by doing this you will be p ...

Case studybr investments is a reputed finance company

Case Study B.R Investments is a reputed finance company having 15 branches in different part of the country. In the home office there are more than 200 employees. This company has a performance rating under which the emp ...

On april 2 2017 elon musk announced that tesla produced

On April 2, 2017, Elon Musk announced that Tesla produced 25,000 cars in the first quarter, setting a new company record.1Within two weeks, Tesla’s market value zoomed past Ford Motor Company (which manufactured more tha ...

1 juan is a highly qualified biomedical researcher having

1. Juan is a highly qualified biomedical researcher. Having recently completed his education, he applies to work at a pharmaceutical company which is renowned for its fast paced innovation and aggressive growth policy. W ...

1 truck alpha initially costs 423 more than truck beta but

1. Truck Alpha initially costs $423 more than Truck Beta, but it consumes 0.04 liter/km versus 0.06 liter/km for Beta. Both trucks last 9 years, and Beta's salvage value is $106 smaller than Alpha's. Fuel costs $1.49 per ...

A position statement which is a simple sentence identifying

A position statement which is a simple sentence identifying the central issue/s you perceive to be the focus of the case. NOTE: Each student may perceive there to be a different issue for each case. It depends on your po ...

The annual demand for a product is 14500 units the weekly

The annual demand for a product is 14,500 units. The weekly demand is 279 units with a standard deviation of 85 units. The cost to place an order is $32.00, and the time from ordering to receipt is six weeks. The annual ...

A farmer owns 450 acres of land he is going to plant each

A farmer owns 450 acres of land. He is going to plant each acre with wheat or corn. Each acre planted with wheat yields $4000 profit, requires three workers, and requires two tons of fertilizer. Each acre planted with co ...

Think about your current or former employer and analyze

Think about your current or former employer and analyze their communications. What communications process (channels, barriers, direction of communications, etc.), do you think their communication is effective and prove y ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As