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Q8. Network design Lonestar company produces a new product and plans to pass from its three plants to the three warehouses in Dallas, Austin
Q8. Network design Lonestar company produces a new product and plans to pass from its three plants to the three warehouses in Dallas, Austin and Houston. The plant P1 has the capacity of 50,000 per week. Plant P2 has a capacity of 80,000 per week, and Plant P3 has a capacity of 60,000 per week. The demands at the three warehouses, Dallas, Austin and Houston are 40,000, 80,000, and 45,000 respectively, per week. Please find the optimal flow from each plant to each warehouse for Lonestar company: the total cost should be minimized, each warehouse's demand must be satisfied, and each plant's capacity cannot be exceeded. (Use Excel solver to get the result. Please attach the Excel file when you submit it) The unit distribution cost is shown as table below. Plants Warehouses Dallas Austin Houston P1 5 4 P2 2 5 P3 1 6 1 2 4 Q9. Inventory management (work-in-process products) ABC Company has two processes to produce X. The company is planning the inventory of work-in-process products. So far, we have known the following information: Processes Manufacturing Orders Processes 2 Process 2: Constant demand rate, daily demand: D =90 Q items per order: Order quantities are fixed, i.e., each time Process 2 places an order to Process 1, it is for Q items (this is what we need to determine). h = 0.3 dollars, inventory carrying cost for per item held for one day Planning horizon is long (infinite). Process 1: K = 5, fixed setup cost of Process 1 to start production, incurred every time when the Process 2 places an order. P = 300: production capacity in items in one day, i.e. production speed per day P Determine the optimal ordering quantity for the working-in- process products each time, ordering time interval, and maximum inventory level. (Show steps)
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