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A company makes digital radios at facilities in Shanghai (China), Bonn (Germany), and Cape Town (South Africa). These plants can make 1800, 900, and
A company makes digital radios at facilities in Shanghai (China), Bonn (Germany), and Cape Town (South Africa). These plants can make 1800, 900, and 2700 radios per week beyond the demand in the "local" markets of Eastern Asia, Germany, and Africa respectively. All three plants can ship to markets elsewhere: Canada/USA, Latin America, Europe, and Western Asia. The demands per week in these four markets are for 1500, 600, 750. and 2300 radios per week respectively. Radios are shipped in boxes of 50. The shipping costs per box are as follows: Canada/USA Latin America Europe Western Asia 280 From/To Shanghai 190 215 130 Bonn 240 250 80 200 Cape Town 210 220 195 230 (i) The company wishes to determine how many boxes should be shipped from each of the factories to each of the markets. Solve this model using LINGO or the Excel Solver. (ii) State the solution in words. (b) (10 marks) Now the situation is similar to part (a), but it's also possible to ship between each pair of origins. The cost per box is low because shipments are al- ready being made along these routes and they can take advantage of economies of scale. The costs per box are: Shanghai Bonn Cape Town 12 From/To Shanghai Bonn 13 17 Cape Town 14 16 (i) Taking advantage of the transhipment possibilities, re-solve this model using LINGO or the Excel Solver. (ii) State the solution in words. A company makes digital radios at facilities in Shanghai (China), Bonn (Germany), and Cape Town (South Africa). These plants can make 1800, 900, and 2700 radios per week beyond the demand in the "local" markets of Eastern Asia, Germany, and Africa respectively. All three plants can ship to markets elsewhere: Canada/USA, Latin America, Europe, and Western Asia. The demands per week in these four markets are for 1500, 600, 750. and 2300 radios per week respectively. Radios are shipped in boxes of 50. The shipping costs per box are as follows: Canada/USA Latin America Europe Western Asia 280 From/To Shanghai 190 215 130 Bonn 240 250 80 200 Cape Town 210 220 195 230 (i) The company wishes to determine how many boxes should be shipped from each of the factories to each of the markets. Solve this model using LINGO or the Excel Solver. (ii) State the solution in words. (b) (10 marks) Now the situation is similar to part (a), but it's also possible to ship between each pair of origins. The cost per box is low because shipments are al- ready being made along these routes and they can take advantage of economies of scale. The costs per box are: Shanghai Bonn Cape Town 12 From/To Shanghai Bonn 13 17 Cape Town 14 16 (i) Taking advantage of the transhipment possibilities, re-solve this model using LINGO or the Excel Solver. (ii) State the solution in words.
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