Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

( 5 0 points ) Oz Inc. produces coffee tables in its plants in Raleigh and Houston that must be shipped to their distribution centers

(50 points) Oz Inc. produces coffee tables in its plants in Raleigh and Houston that must be shipped to their distribution centers (DCs) in New Jersey and San Diego. The tables are distributed to the local retailers through these DCs. Oz Inc. uses a 3PL (Third Party Logistics) company to make the shipments. Suppose, through the 3PL, Oz Inc. can ship either directly to their DCs or through the DCs of the 3PL company located in Detroit and Salt Lake City. The monthly production capacity at the Raleigh and Houston plants are 4,600 and 6,500 units, respectively, and the demands at the New Jersey and San Diego retailers are forecasted at 5,600 and 3,500 units, respectively. The cost of shipping per unit is given in the following table:FROM / TO New Jersey San Diego Detroit Salt Lake CityRaleigh $ 4.00 $ 7.20 $ 3.50 $ 2.90 Houston $ 4.50 $ 2.50 $ 2.00 $ 2.00 Detroit $ 1.50 $ 5.60 $ - $ 3.60 Salt Lake City $ 5.00 $ 1.00 $ 3.60 $ - Identify the best shipping routes and cost by applying thea)(10 points) Least Stage Cost Heuristic (see lecture slides)b)(10 points) Total Landed Cost Heuristic (see lecture slides)c)(10 points) Linear Programmingd)(10 points) How do the results from parts (a),(b) and (c) compare?e)(10 points) There is an alternate 3PL company indicating that they would provide the same pricing except for the Raleigh New Jersey shipment cost would be lower at $1.90/unit but Houston to Detroit would be higher at $3.30/unit. Which career would you choose? Why? How much cost would you be saving or adding if you would switch careers? (Base your answer on the LP Solution)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management

Authors: Stephen P Robbins, Mary Coulter

11th Edition

9780273752776, 132163845, 273752774, 978-0132163842

More Books

Students also viewed these General Management questions

Question

In a paragraph please explain the business model canvass.

Answered: 1 week ago