Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Audiofile Company produces boomboxes. However, management has decided to subcontract out the production of the speakers needed for the boomboxes. Three vendors are available
The Audiofile Company produces boomboxes. However, management has decided to subcontract out the production of the speakers needed for the boomboxes. Three vendors are available to supply the speakers. Their price for each shipment of speakers is shown below. In addition, each vendor would charge a shipping cost. Each shipment would go to one of the company's two warehouses. Each vendor has its own formula for calculating this shipping cost based on the mileage to the warehouse. These formulas and the mileage data are shown below. Whenever one of the company's two factories needs a shipment of speakers to assemble into the boomboxes, the company hires a trucker to bring the shipment in from one of the warehouses. The cost per shipment is given in the following table, along with the number of shipments needed per month at each factory. Each vendor is able to supply a maximum of only shipments per month to each warehouse because of shipping limitations Similarly, each warehouse is able to send a maximum of only shipments per month to each factory. Management now wants to develop a plan for each month regarding how many shipments if any to order from each vendor, how many of those shipments should go to each warehouse, and then how many shipments each warehouse should send to each factory. The objective is to minimize the sum of the purchase costs including the shipping charge and the shipping costs from the warehouses to the factories. a Formulate the problem as SND problem. b Suppose that the limit on vendors are increased and each vendor is able to supply as many as shipments per month. How would you expect the results to be changed.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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