Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Aberdeen Computer Corporation ( ACC ) is located in Aberdeen, Washington. The company has developed Jeeves, a voice - activated Internet assistant for the home.

Aberdeen Computer Corporation (ACC) is located in Aberdeen, Washington. The company has developed Jeeves, a voice-activated Internet assistant for the home. This product is manufactured at four plants, located in Atlanta, Kansas City, Aberdeen, and Austin. After production, the units are shipped to three warehouses located in Nashville, San Jose, and Houston. ACC sells through the retail channel. In particular, five different retailers currently sell JeevesSears, Best Buy, Staples, Walmart, and Office Depot. ACC makes weekly shipments to the main warehouses of these five retailers.
The shipping cost from each plant to each warehouse, along with the production cost and weekly production capacity at each plant, are given in the table below.
Plant Shipping Cost ($/unit) Production Cost ($ /unit) Capacity (units/week)
Nashville San Jose Houston
Atlanta $ 30 $ 40 $ 50 $ 208100
Kansas City $ 25 $ 45 $ 40 $ 214400
Aberdeen $ 45 $ 30 $ 55 $ 215400
Austin $ 30 $ 50 $ 30 $ 210300
The shipping cost from each warehouse to each customer, the variable cost (cost per unit moved through the warehouse), the capacity (maximum number of units that can be moved through the warehouse per week) for each warehouse, and the weekly demand for each customer are given in the table below.
Warehouse Shipping Cost ($/Unit) Variable Cost ($ /unit) Capacity (units/week)
Sears Best Buy Staples Walmart Office Depot
Nashville $ 40 $ 45 $ 30 $ 25 $ 20 $ 4300
San Jose $ 15 $ 50 $ 25 $ 15 $ 40 $ 5500
Houston $ 50 $ 35 $ 15 $ 40 $ 50 $ 5500
Customer demand (per week)1005075300150
Click here for the Excel Data File
Formulate and solve a linear programming model in a spreadsheet.
Determine the plan for weekly production and distribution of Jeeves from the various plants, through the warehouses, to the customers that will minimize total costs.
Note: Leave no cells blank. Enter "0" wherever required.
Determine the total cost.

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

Project Management A Systems Approach to Planning Scheduling and Controlling

Authors: Harold Kerzner

10th Edition

978-047027870, 978-0-470-5038, 470278706, 978-0470278703

More Books

Students also viewed these General Management questions

Question

2. Sit where you can observe your subject without distraction.

Answered: 1 week ago