Equivalent deterministic linear program

Assignment Help Operation Management

Reference no: EM131117333

Suppose that in tomato season there are three canneries under one management that ship cases of canned tomatoes to five warehouses. The number of cases processed at each cannery during the tomato season is known in advance as shown in the table below together with the cost to ship per case to each of the warehouses. Availability Shipping Cost ($/case) to of Warehouse Dump Canneries Cases a b c d e 1 50,000 0.9 2.0 1.8 1.7 2.5 1.0 2 75,000 0.6 1.6 1.4 1.8 2.5 1.0 3 25,000 2.7 1.8 1.5 1.0 0.9 1.0 The last column is the cost per case of dumping unshipped tomatoes. The seasonal demand, however, at each of the warehouses is uncertain. The probability distribution of demand is shown in the table below: Demand at Probability Warehouse .15 .55 .30 a 15,000 20,000 30,000 b 16,000 20,000 28,000 c 17,000 20,000 26,000 d 18,000 20,000 24,000 e 19,000 20,000 22,000 Cases left over at the end of the season cannot be stored until next year because the food in the cans will spoil. They must be shipped to the dump at a loss of $1 per case. Failure to supply all of the warehouses demands is penalized at $0.25 per case, the discounted estimated loss of all future sales. (Turning a customer away runs the risk that the customer will become the customer of another supplier.) What shipping schedule will optimize the sum of total shipping cost plus expected net revenues? Solve the problem in the following ways: (a) Formulate this as an equivalent deterministic linear program (EQ-LP). How many equations does this EQ-LP have? Solve this EQ-LP using any available software. (b) Solve EQ-LP using the method of Section 12.3. (c) Solve the problem using Benders Decomposition with crude Monte Carlo methods. (d) Solve the problem using Benders Decomposition with Monte Carlo methods using importance sampling.

Reference no: EM131117333

Questions Cloud

Is your marketing strategy on target : As I was reviewing/researching supporting data on marketing research and it is relationship to understanding marketing strategy, I came across this very interesting e-book that poses the question - Is Your marketing strategy on target?

Compute ending inventory at cost using : Boyne Inc. had beginning inventory of $12,000 at cost and $20,000 at retail. Net purchases were $120,000 at cost and $170,000 at retail.

What are the main characteristics that police agencies have : What are the main characteristics that police agencies as a whole are looking for in their recruits today? What do you believe would be the fate of community policing in the near future?

Individual organizations conducting marketing research : In reading your comment, "The choices that people have on buying options continue to grow, therefore I feel the information will get to a point where it is irrelevant", I would like to pose a further follow up by asking if it is your view that the re..

Equivalent deterministic linear program : Suppose that in tomato season there are three canneries under one management that ship cases of canned tomatoes to five warehouses. The number of cases processed at each cannery during the tomato season is known in advance as shown in the table below..

Why would a bank desire to participate in syndicated euro : With regard to Euro credit loans, who are the borrowers? Why would a bank desire to participate in syndicated Euro credit loans? What is LIBOR, and how is it used in the Euro credit market?

Using the gross profit method : Fosbre's normal gross profit percentage is 35% on sales. Using the gross profit method, estimate Fosbre's April 30 inventory that was destroyed by fire.

What are the different types of buyers and consumers : What are the different types of buyers and consumers? How does the type of buyer or consumer impact marketing strategy? As part of your response, consider the characteristics of buyers and the factors that influence their purchasing decision. How can..

Prepare the entry to record the purchase : Use the information for Kemper Company from BE9-5. In 2011, Kemper paid $1,000,000 to obtain the raw materials which were worth $950,000. Prepare the entry to record the purchase.

User Account

All Pages