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I need help with number 19. How do I set it up in excel? Set the various production options (e.g., regular pro- duction, outside purchase,

I need help with number 19. How do I set it up in excel?

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Set the various production options (e.g., regular pro- duction, outside purchase, etc.) as supply nodes and the monthly demands as the demand nodes. 17 Maurice's Pump Manufacturing Company currently maintains plants in Atlanta and Tulsa that supply major distribution centers in Los Angeles and New York. Because of an expanding demand, Maurice has decided to open a third plant and has narrowed the choice to one of two citiesNew Orleans or Houston. The pertinent production and distribution costs, as well as the plant capacities and distribution center demands, are shown in the following table. DISTRIBUTION CENTERS PRODUCTION LOS NEW COST PLANTS ANGELES YORK CAPACITY (PER UNIT) 19 The Lilly Snack Company is considering adding an additional plant to its three existing facilities in Wise, Virginia; Humbolt, Tennessee; and Cleveland, Georgia to serve three large markets in the Southeast Two locationsBrevard, North Carolina, and Laurens, South Carolinaare being considered. The trans- portation costs per pallet are shown in the table at the top of the next page. (a) Which site would you recommend? Why? (b) Suppose that the Brevard location has been selected. Due to the perishable nature of the goods involved, management wishes to restrict the maximum num- ber of pallets shipped from any one plant to any single market. To accomplish this, management is willing to accept a 10% surcharge on their optimal transportation costs from part (a). What is the new transportation plan, and what is the new cost? 20 Meg Bishop, vice president of supply chain at the Lilly Snack Company (see Problem 19) has been able to secure shipping from the proposed plant in Brevard to its plants in Wise and Cleveland for $6 and $5 per pallet, respectively. If Lilly chooses to place a new plant in Brevard, what would be the new shipping plan and cost? Ignore part (b) of Problem 19 in answering this question. 21 The distribution system for the Smith Company con- sists of three plants (A, B, and C), two warehouses (D and E), and four customers (W, X, Y, and 2). The relevant supply, demand, and unit shipping cost information are given in the table for Problem 21 near the top of the next page. Set up and solve the trans- shipment model to minimize total shipping costs. $8 S5 600 $6 $4 S7 900 SS SS S6 500 Atlanta (existing) Tulsa (existing) New Orleans (proposed) Houston (proposed) Forecast demand $4 (anticipated) $4 S6 500 $3 (anticipated) 800 1,200 Which of the new possible plants should be opened? Table for Problem 18 MARKETS ATLANTA BOSTON CHARLESTOWN DOVER SUPPLY PACKING PLANTS Eaglestown Farrier Guyton Hayesville Demand $6.00 $5.50 $6.00 $7.00 $7.00 $5.50 $5.00 $7.50 $7.50 $4.00 $6.50 $8.50 10,000 $7.50 $7.00 $7.00 S6.50 8,000 10,000 5,000 9,000 8,000 9,000 5.000 187 TRANSPORTATION, ASSIGNMENT, AND NETWORK MODELS Table for Problem 19 TO WISE HUMBOLT LAURENS DEMAND FROM CLEVELAND BREVARD $21 $29 $20 $30 $22 $30 Charlotte Greenville Atlanta $20 S25 $17 $27 $25 $27 $28 $31 250 200 S22 350 Capacity 300 200 150 150 150

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