Question
You are the new vice president for operations at the The PoyrazMade (PM), a company specializing in the production of quality, discount sets of golf
You are the new vice president for operations at the The PoyrazMade (PM), a company specializing in the production of quality, discount sets of golf clubs. You were hired primarily because of your expertise in supply chain management and mathematical modeling. Your main job responsibility is the integrated planning and control of all resources in the logistics process from the acquisition of raw materials to the delivery of finished products to the end user. While you seek to optimize all activities in the supply chain, including transactions between firms, your top priority is ensuring that all aspects of production and distribution within the company are operating optimally. PM produces three different lines of golf clubs for men, women, and junior golfers at manufacturing plants in Daytona Beach, FL; Memphis, TN; and Tempe, AZ. The plant in Tempe produces all three line of clubs while the one in Daytona only produces Mens and Womens lines, and the plant in Memphis only produces the Womens and Juniors lines. Each line of clubs requires varying amounts of three raw materials that are sometimes in short supply: titanium, aluminum, and a distinctive rock maple wood that PM uses in all of its drivers. The manufacturing process for each line of clubs at each plant is identical. Thus, the amount of each of these materials required in each set of the different lines of clubs is summarized in the following table.
The estimated amount of each of these key resources available at each plant during the coming month is given as:
PMs reputation for quality and affordability ensures that they can sell all the clubs the company can make. The Mens, Womens, and Juniors lines generate wholesale revenues of $278, $228, and $149, respectively, regardless of where they are produced. Club sets are shipped from the production plants to distribution centers in Sacramento, CA; Denver, CO; and Pittsburgh, PA. Each month, the different distributions centers order the number of club sets in each of the three lines that they would like to receive. PMs contract with this distributor requires the company to fill at least 97% (but no more than 100%) of all distributor orders.
PM recently received the following distributor orders for the coming month:
The cost of shipping a set of clubs to each distribution point from each production facility is summarized in the following table. Note again that Daytona does not produce Juniors club sets, and Memphis does not produce Mens club sets.
You have been asked to determine an optimal production and shipping plan for the coming month in order to maximize the profit of The PoyrazMade. Given above information, what is the maximum total profit achievable for the coming month? A) $ 1,250,000 B) $ 1,472,010 C) $ 1,504,210 D) $ 1,582,898 E) $ 1,613,472 F) $ 1,678,323 G) $ 1,786,395 H) $ 1,999,999 I) $ 2,000,000 J) Infeasible solution: model cannot be solved, one or more of the constraints cannot be satisfied.
Titanium Aluminum Rock Maple Men's 3.1 4.3 5.25 Resources Required per Club Set (in lbs.) Women's 2.9 3.8 4.85 Junior's 2.7 4.8 4.65 Titanium Aluminum Rock Maple Daytona 4500 6000 9500 Estimated Resources Availability (in lbs.) Memphis 14500 19000 18000 Tempe 8500 12000 16000 Sacramento Denver Pittsburgh Men's 1000 680 900 Number of Club Sets Ordered Women's 1000 1100 900 Juniors' 680 380 1080 To/From Sacramento Denver Pittsburgh Men's club sets shipping costs (in $) Daytona Tempe 51 10 28 43 36 56 To/From Daytona 49 Women's club sets shipping costs (in $) Memphis 33 Sacramento Denver Pittsburgh Tempe 9 42 54 22 27 34 13 To/From Sacramento Denver Pittsburgh Juniors' club sets shipping costs (in $) Memphis Tempe 31 8 21 40 12 52 Titanium Aluminum Rock Maple Men's 3.1 4.3 5.25 Resources Required per Club Set (in lbs.) Women's 2.9 3.8 4.85 Junior's 2.7 4.8 4.65 Titanium Aluminum Rock Maple Daytona 4500 6000 9500 Estimated Resources Availability (in lbs.) Memphis 14500 19000 18000 Tempe 8500 12000 16000 Sacramento Denver Pittsburgh Men's 1000 680 900 Number of Club Sets Ordered Women's 1000 1100 900 Juniors' 680 380 1080 To/From Sacramento Denver Pittsburgh Men's club sets shipping costs (in $) Daytona Tempe 51 10 28 43 36 56 To/From Daytona 49 Women's club sets shipping costs (in $) Memphis 33 Sacramento Denver Pittsburgh Tempe 9 42 54 22 27 34 13 To/From Sacramento Denver Pittsburgh Juniors' club sets shipping costs (in $) Memphis Tempe 31 8 21 40 12 52Step by Step Solution
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