Chapter 11- Solved Problems

Chapter 11- Solved Problems

Problem 1

Flynn’s Boot Company from example 11.7 from your book has experienced tremendous growth due to their boots being prominently exposed to a large audience during an awards ceremony. As such, they have opened two new retail outlets and one new warehouse. With the new data given below, determine the most cost effective means for delivering their boots to market.

Weekly / Weekly
Capacity / Demand
Warehouse / (Ci) / Customer / (Dj)
Atlanta / 20,000 / BillyBob / 27,800
Fort Worth / 40,000 / DudeWear / 8,000
Tucson / 30,000 / Slickers / 13,500
Nashville / 35,000 / CJ's / 33,000
Total / 125,000 / BigD / 15,000
MusicCity / 20,000
Total / 117,300
Cost to ship one pair of boots from Warehouse i to Customer j (Tij)
BillyBob / DudeWear / Slickers / CJ's / BigD / MusicCity
Atlanta / $2.00 / $3.00 / $3.50 / $1.50 / $1.90 / $2.00
Fort Worth / $5.00 / $1.75 / $2.25 / $4.00 / $0.50 / $4.00
Tucson / $1.00 / $2.50 / $1.00 / $3.00 / $1.25 / $6.00
Nashville / $6.00 / $4.50 / $2.35 / $2.00 / $5.00 / $0.25

Answer Problem 1

Number of pairs of boots shipped from Warehouse i to Customer j
BillyBob / DudeWear / Slickers / CJ's / BigD / MusicCity / Totals
Atlanta / 0 / 0 / 0 / 20,000 / 0 / 0 / 20,000
Fort Worth / 0 / 8,000 / 11,300 / 0 / 15,000 / 0 / 34,300
Tucson / 27,800 / 0 / 2,200 / 0 / 0 / 0 / 30,000
Nashville / 0 / 0 / 0 / 13,000 / 0 / 20,000 / 33,000
Totals / 27,800 / 8,000 / 13,500 / 33,000 / 15,000 / 20,000
Objective Function: Minimize Total Shipping Costs: / $137,925

Problem 2

A franchised coffee shop company is deciding where to establish a new location near Empire University’s campus. The major population centers on campus are located in the business, science, liberal arts, and mathematics buildings. Business has 2,300 students and is located at (3,7); science has 1,200 students and is located at (1,1); liberal arts has 3,400 students and is located at (6,2); mathematics has 1,100 students and is located at (7,6). According to the center of gravity method, where should the coffee shop be placed?

Answer Problem 2

= 4.525

= 3.838

Problem 3

Last month, Wilson Industries made 90,000 deliveries. Of those deliveries, the following information with regard to service levels was collected:

4,500 deliveries late

2,300 deliveries incomplete

400 deliveries damaged

1,100 deliveries incorrectly billed

Wilson uses “perfect order” to track logistics quality. What was the percent perfect order last month?

Answer Problem 3

= 90.8%