Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

---->show your work in an excel sheet and please attach a copy of the excel sheet 13. Skateboard Distribution. Sports of All Sorts produces, distributes,

image text in transcribed

---->show your work in an excel sheet and please attach a copy of the excel sheet

13. Skateboard Distribution. Sports of All Sorts produces, distributes, and sells highquality skateboards. Its supply chain consists of three factories (located in Detroit, Los Angeles, and Austin) that produce skateboards. The Detroit and Los Angeles facilities can produce 350 skateboards per week, but the Austin plant is larger and can produce up to 700 skateboards per week. Skateboards must be shipped from the factories to one of four distribution centers, or DCs (located in lowa, Maryland, Idaho, and Arkansas). Each distribution center can process (repackage, mark for sale, and ship) at most 500 skateboards per week. Skateboards are then shipped from the distribution centers to retailers. Sports of All Sorts supplies three major U.S. retailers: Just Sports, Sports 'N Stuff, and The Sports Dude. The weekly demands are 200 skateboards at Just Sports, 500 skateboards at Sports 'N Stuff, and 650 skateboards at The Sports Dude. The following tables display the per-unit costs for shipping skateboards between the factories and DCs and for shipping between the DCs and the retailers. LO 3 a. Draw the network representation for this problem. b. Build a model to minimize the transportation cost of a logistics system that will deliver skateboards from the factories to the distribution centers and from the distribution centers to the retailers. What is the optimal production strategy and shipping pattern for Sports of All Sorts? What is the minimum attainable transportation cost? c. Sports of All Sorts is considering expansion of the lowa DC capacity to 800 units per week. The annual amortized cost of expansion is $40,000. Should the company expand the lowa DC capacity so that it can process 800 skateboards per week? (Assume 50 operating weeks per year.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Management

Authors: Robbins, DeCenzo, Coulter

7th Edition

132996855, 0-13-610982-9 , 9780132996853, 978-0-13-61098, 978-0136109822

More Books

Students also viewed these General Management questions