Determine the optimal demand allocation

Assignment Help Supply Chain Management
Reference no: EM13227408

RFC Bearings has just entered the U.S .market.  It has three major DCs in the Atlanta, Boston, and Chicago areas.

Annual demand served by each DC is estimated to be:

                                Atlanta 10,000                   Boston 20,000                    Chicago 15,000

Four plants (Memphis, Philadelphia, Toledo) supply the DCs.  Per-unit transportation costs and plant capacities are given in the following table:

Plant Location

Distribution Center

Plant

Capacity

Atlanta

Boston

Chicago

Memphis

$3

9

7

30,000

Philadelphia

5

2

4

35,000

Toledo

6

6

2

35,000

Using the notation:

XMA = Qty shipped from Memphis to Atlanta

XMB = Qty shipped from Memphis to Boston, etc.,

write down a model that will determine the optimal demand allocation (i.e. minimize transportation costs.)

Suppose now that the three locations (Memphis, Philadelphia, Toledo) are potential locations, i.e., each plant would only be constructed if it improves overall cost (i.e., transportation plus plant fixed costs).  The data is repeated here with the (annualized) plant fixed costs shown additionally.

Plant Location

Distribution Center

Plant

Capacity

Annualized

Fixed Costs

Atlanta

Boston

Chicago

Memphis

$3

9

7

30,000

$50,000

Philadelphia

5

2

4

35,000

45,000

Toledo

6

6

2

35,000

48,000

What changes would you make to the model in part (a) so that we can determine the optimal locations of the plants as well as the optimal demand allocation (i.e. minimize both transportation as well as fixed costs).

Reference no: EM13227408

Questions Cloud

Draw the complete circuit including the load : Design a DC power supply that provides -95v +/- 5v to a 2 amp load (energy absorber). The input source is a 100 volt peak sinusoid, 60 Hz. You may use any circuit element we've studied. State the values of all circuit elements
Logistic regression : A researcher is analyzing a dataset to determine whether the independent variables predict students' reading level.
How you might apply the basic concepts : How does the transformation process apply to the field of construction management, and how you might apply the basic concepts?
Describe the generic product development process : Describe the generic product development process described in this chapter. How does this process change for "technology push" products?
Determine the optimal demand allocation : What changes would you make to the model in part (a) so that we can determine the optimal locations of the plants as well as the optimal demand allocation
Find out the demand at each vendor : Find out the demand at each vendor and total demand for the system and compute how much and to whom an incentive should be offered so that the vendors relocate to the optimal locations from the system's point of view?
Explain an irreducible representation of a2 symmetry in c3v : Confirm that the z-component of orbital angular momentum is a basis for an irreducible representation of A2 symmetry in C3v.
Explain baking soda decomposes into sodium carbonate : Baking soda decomposes into sodium carbonate, water vapor and carbon dioxide. how many liters of gas will be produced at 155 C and 753 torr by the complete decomposition of 3.2 g of sodium bicarbonate?
Define the formula of sedative demerol hydrochloride : Cyclopropane, C3H6, is an anesthetic given by inhalation. How many grams are in 0.30 mole of cyclopropane? The sedative Demerol hydrochloride has the formula C15H22ClNO2. How many grams are in 2.2x10^-2 mole of Demerol hydrochlorde?

Reviews

Write a Review

Supply Chain Management Questions & Answers

  Which disease is epidemic or endemic

Which disease is epidemic or endemic.

  Brushing up on inventory control

Health system in Pennsylvania

  Draw the project network

Determine the mean critical path for Brent's job search process. What is the variance of the project duration?

  Supply chain management questions

Briefly define the following two supply chain metrics: (i) inventory turnover ratio and (ii) supply chain velocity.

  How much safety inventory of cell should retailer carry

The retailer is targeting a CSL of 95 percent and monitors its inventory continuously. How much safety inventory of cell phones should the retailer carry? What should its reorder point (ROP) be?

  Relationship between the strategic and the tactical

How do you perceive the relationship between the strategic and the tactical? word count 300 Harvard Referencing

  Modern retail sector

To what extent does the modern retail sector depend on efficient supply chain management? Backup your write up with real life situation from well know companies. Word count is 600 Minimum of four books should be reference in Harvard style

  Total quality management problem

How has Total Quality Management in your company or a well known company addressed associate training to eliminate failure?

  Calculate the allele frequencies of r and r

The flower color of a certain species of snapdragon isdetermined by one gene with two alleles, R (red) and r (yellow). Ina population of 200 snapdragons, you see the followingphenotypes.

  How many shirts must gina sell to break even

What is the EOQ, in minimizing cost, how many orders would be made each year and what is the time between orders?

  Value stream mapping to gain a solid baseline

QUESTION What alternative first steps could you use instead of value stream mapping to gain a solid baseline prior to innovating the process?

  Problem on fixed-time period model

What is the difference in safety stock quantities if blankets are managed using a fixed-time period model (P model) versus a Fixed-order quantity (Q model)?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd