Reference no: EM131333028
Problem 1
1. Formulate the equations to determine the optimal shipments from each point of embarkation to each destination along this supply chain that will result in the minimum total shipment cost.
2. Solve the model using Excel Solver and provide the values of the variables used in the equations.
3. Assume that the Denver distribution centre becomes unoperational (due to a strike) and the responsibilities for this distribution centre are passed on to the Tucson distribution centre. Explain what changes you would make in the equations. Solve these equations using Solver and provide the values of the variables.
A separate Excel workbook with individual worksheets for each of 2 and 3 above would need to be provided.
Problem 2
The time between arrivals of oil tankers at a loading dock at XYZ Bay is given by the following probability distribution:
Time between ship arrivals (days)

Probability 
1

0.05

2

0.10

3

0.20

4

0.30

5

0.20

6

0.10

7

0.05

The time required to fill a tanker with oil and prepare it for sea is given by the following probability distribution:
Time to fill and prepare (days)

Probability 
3

0.10

4

0.20

5

0.40

6

0.30

1. Simulate the movement of tankers to and from the single loading dock for the first 20 arrivals. Compute the average time between arrivals (1 mark), average waiting time to load (1 mark) and average number of tankers waiting to be loaded.
2. Discuss any hesitation you might have about using the simulation results for decision making.
Problem 3
Bozo is a small company that produces and distributes beer under the same label. The company is examining the possibility of penetrating the North Shore city area market. A bottling plant location that would serve the area is sought. A grid overlay is placed over the selling area as shown below. North Shore city is area E. The suburbs surrounding E are designated as A to I per mile for the other areas.
1. If the centre ofgravity approach is used, where should the bottling plant be located?
You have been provided with a spreadsheet of two year material usage (2009 & 2010) of a manufacturing company that has operations in several locations.
o Undertake ABC analysis (1000 items per student)for the years 2009 and 2010 respectively. Please see below for the rows that you have to choose. You have to undertake ABC analysis of 900 items.
 Discuss the logic you applied while undertaking the ABC analysis.
o Does a ‘Category A' item in 2009 remain the same in 2010? If not, what reasons you think might have caused the discrepancy?
o What do you think will happen if the ABC analysis is not undertaken properly?2. Given the wide variety of products, different inventory management techniques should be used. By analysing the annual usage and value of the item,
o Identify 50 items which will be suitable for Just in Time purchasing, support your finding with appropriate reason
Student Number

Rows in the excel sheet

M00500639

2 to 900

M00050956

901 to 1800

M00473110

1801 to 2700

M00602807

2701 to 3600

M00525412

3601 to 4500

M00509779

4501 to 5400

M00602810

5401 to 6300

M00576314

6301 to 7200

M00599690

7200 to 8100

M00599430

8101 to 9000

3. Which costs are minimised by adopting Just in Time purchasing? IF you were to adopt JIT purchasing, what processes will you implement to ensure smooth running of operations
Logical Structure, Layout, Formatting, Presentation &Referencing 
Additional Information
Ordering cost


>$100,000

$5000

$50,000 to $100,000

%2000

Category C Product

$40

Holding Cost


Holding Cost for items with annual usage more than 1000 items per year

8% of annual consumption value

Holding costs for items with annual usage between 500 and 1000

10% of value

Holding costs of items with annul usage between 50 and 100

12% of value

Holding costs of items with annual usage between 1 & 50

1% of value

Problem 4
The Hendon casket company supplies caskets to funeral homes in and around London. The location of the funeral homes in relation to the company warehouse is as given below.
1. Suppose that the funeral home locations (•) and associated number of caskets for each funeral home represent a single, daily despatch. If the company has six trucks with capacities of 20 caskets each, develop a routeing plan using the sweep method with a due north start. Place your design on the map.
How many trucks are actually used and what is the total travel distance for the route design (you may scale distance from the diagram).
2. What do you think are the advantages of using the sweep method visàvis if the alternative (savings) method.