Answered step by step
Verified Expert Solution
Question
1 Approved Answer
? ?? Plastic jugs are made in Tampa and Jacksonville. The process takes poly resin pellets from a train car melts them and injection molds
???
Plastic jugs are made in Tampa and Jacksonville. The process takes poly resin pellets from a train car melts them and injection molds a jug. The gallon jug is then tested for quality by measuring the thickness of the plastic at bend points and pressurizing the jug with air to see if it leaks. Jugs are then. put in a chamber and reheated and flooded with fluorine gas to seal the plastic (else the bug stomper juice would eat through the jug). It costs $.35 to mold a jug in Tampa and $.25 to mold a jug in Jacksonville. Each plant can mold 150,000 jugs a month. The molded jugs are placed in train cars and sent to filling plants in Plant City, Tallahassee and Yehaw Junction. At the filling plants the jugs are filled with bug stomper and labeled. It costs $.9 to fill a jug in Plant City, $1.25 to fill one in Tallahassee, and $1.00 to fill one in Yehaw Junction. Each filling plant can fill 75,000 jugs a month. The filled jugs are sent to the distribution centers in Tampa (separate facility from jug molding), Orlando, Miami and Panama City. Next month's demand is as follows Tampa Orlando Miami Panama City From Gallon Jugs 50,000 Tampa 40,000 Shipping costs for empty jugs are as follows. Cost Per jug $ 70,000 30,000 To Plant City .05 Jacksonville .2 Tallahassee Yehaw Junction .2 .06 15 .22 Shipping costs for filled jugs are as follows Cost per Jug $ From Plant City Tallahassee To Tampa .1 .2 YehawJunction CGTFH Orlando .1 .15 .1 Miami .3 .4 .2 Panama City CGTFH .1 .3 CGTFH = Can't get there from here. PCB needs to know what the most cost effective plan would be to meet next month's demand. How many jugs should be molded at each molding plant, where should they be sent? How many jugs will each filling plant fill, where will they be sent. How much will it cost? What will be the overall average cost per jug when all jugs have arrived at the distribution centers?
Step by Step Solution
★★★★★
3.46 Rating (156 Votes )
There are 3 Steps involved in it
Step: 1
Formulate Excel model as follows E...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started