I need help to build this step by step in Analytic Solver, others have posted answers, but I am looking for each of the formulas and an explanation on how to solve this.

Case 3.1 Chapter 3

Putting the Link in the Supply Chain

Rick Eldridge is the new Vice President for operations at the The Golfers Link (TGL), a company specializing in the production of quality, discount sets of golf clubs. Rick was hired primarily because of his expertise in supply chain management (SCM). SCM is the integrated planning and control of all resources in the logistics process from the acquisition of raw materials to the delivery of finished products to the end user. While SCM seeks to optimize all activities in the supply chain including transactions between firms, Ricks first priority is ensuring that all aspects of production and distribution within TGL are operating optimally.

TGL produces three different lines of golf clubs for men, women, and junior golfers at manufacturing plants in Daytona Beach, FL; Memphis, TN; and Tempe, AZ. The plant in Tempe produces all three lines of clubs while the one in Daytona only produces Men's and Women's lines, and the plant in Memphis only produces the Women's and Junior's lines. Each line of clubs requires varying amounts of three raw materials that are sometimes in short supply: titanium, aluminum, and a distinctive rock maple wood that TGL uses in all of its drivers. The manufacturing process for each line of clubs at each plant is identical. Thus, the amount of each of these materials required in each set of the different lines of clubs is summarized in the following table:

Resources Required per Club Set (in lbs)

Mens Womens Juniors

Titanium 2.9 2.7 2.5

Aluminum 4.5 4 5

Rock Maple 5.4 5 4.8

The estimated amount of each of these key resources available at each plant during the coming month is given as:

Estimated Resource Availability (in lbs)

Daytona Memphis Tempe

Titanium 4,500 8,500 14,500

Aluminum 6,000 12,000 19,000

Rock Maple 9,500 16,000 18,000

TGLs reputation for quality and affordability ensures that they can sell all the clubs they can make. The Mens, Womens, and Juniors lines generate wholesale revenues of $225, $195, and $165, respectively, regardless of where they are produced. Club sets are shipped from the production plants to distribution centers in Sacramento, CA, Denver, CO, and Pittsburgh, PA. Each month, the different distributions centers order the number of club sets in each of the three lines that they would like to receive. TGLs contract with this distributor requires the company to fill at least 90% (but no more than 100%) of all distributor orders. Rick recently received the following distributor orders for the coming month:

Number of Club Sets Ordered

Mens Womens Juniors

Sacramento 700 900 900

Denver 550 1,000 1,500

Pittsburgh 900 1,200 1,100

The cost of shipping a set of clubs to each distribution point from each production facility is summarized in the following table. Note again that Daytona does not produce Juniors club sets and Memphis does not produce Mens club sets.

Shipping Costs

Mens Womens Juniors

To \ From Daytona Tempe Daytona Memphis Tempe Memphis Tempe

Sacramento $51 $10 $49 $33 $9 $31 $8

Denver $28 $43 $27 $22 $42 $21 $40

Pittsburgh $36 $56 $34 $13 $54 $12 $52

Rick has asked you to determine an optimal production and shipping plan for the coming month.

Create a spreadsheet model for this problem and solve it. What is the optimal solution?

If Rick wanted to improve this solution, what additional resources would be needed and where would they be needed? Explain.

What would TGLs optimal profit be if the company was not required to supply at least 90% of each distributors order?

Suppose TGLs agreement included the option of paying a $10,000 penalty if the company cannot supply at least 90% of each distributors order but instead supply at least 80% of each distributors order. Comment of the pros and cons of TGL exercising this option.