Splash soft drinks case study

Assignment Help Case Study
Reference no: EM13285461

Splash Soft Drinks

Splash Soft Drinks Inc. (SSD) has recently achieved sales that exceeded its expectations after it introduced a new beverage that was greatly welcomed by their customers. The company is currently considering opening a new plant to which some of the production of the other plants may be shifted.

The management has decided to undertake a preliminary analysis in order to evaluate the minimum cost for the network configuration under the assumption that the network will be designed from scratch (i.e., as if no plants currently exist)

The annual fixed and production costs as well as the plant capacity at each location is given in the Table 1.

TABLE 1

Fixed cost

Capacity

Production cost

 

Plant

(In $)

(in hectoliters)

($/hectoliter)

A

81400

22000

0.5

B

83800

24000

0.45

G

88600

28000

0.42

H

91000

30000

0.44

 

79000

20000

0.56

C

86200

26000

0.5

 

88600

28000

0.5

J

91000

30000

0.46

E

79000

20000

0.43

F

80200

21000

0.41

 

+ a hectoliter is 100 liters

* Excel clawfiles are included 

The distance in miles between the potential plants and markets is given in Table 2. The demand for markets A through F must be met and is given in the bottom of Table 2.

The trucks have capacity of 150 hectoliters and a cost of $0.92 per mile. Note that when a truck makes a delivery trip, it goes back to the plant empty. State any assumptions you make and address the following questions:

1)         Formulate a linear/integer programming model to minimize the total cost for the network and to determine the number of plants to be opened and their locations. Make sure you clearly define your decision variable, objective function and constraints.

2)         Implement the formulated model in Excel and use Solver to find the optimal plant locations when the total cost is minimized. Report a summary of your answer.

3)         Suppose that the maximum distance between a plant and a market cannot exceed ISO miles. What additional decision variables and/or constraints do you need to add to your model in question (1) to accommodate this condition?

4)         Modify your model in question (2) to take into account the new condition in question (3) and resolve the problem. Report the new locations and minimum cost. 

TABLE 2.. Distance in miles between potential plants and markets

 

 

A

Markets

D

E

F

 

A

0

76.1

30.4

139.4

72.6

11.7

 

B

76.1

0

71

77.2

144.5

83.7

 

G

20.8

92.9

47.2

156.1

47.5

11.7

 

H

54.7

113.3

52.9

187.2

93

45.2

Plants

I

13.5

85.5

28

148.7

67.3

9.3

 

C

30.4

71

0

138.2

94.5

38.1

 

D

139.4

77.2

138.2

0

207.9

146.9

 

J

47.8

106.5

46.2

180.2

86.7

38.9

 

E

72.6

144.5

94.5

207.9

0

63.4

 

F

11.7

83.7

38.1

146.9

63.4

0

 

Demand

14000

10000

8000

12000

10000

9000

* Excel data files are included

Notes:

1)   Refer to case guidelines when you write your report

2)   You can assume that the transportation cost can be calculated for a fraction of a truck.

distance (In miles)

A

8

markets

C

D

E

F

Fixed cost
(In 8)

CareacHY (in
hectolitre)

Production cost
( $ pee Imctollter)

A

 

76.1

30.4

139.4

72.6

11.7

81400

22000

0.5

8

761

0

-,                 71

77.2

144.5

83.7

83800

24000

0.45

0

20.8

92.9

47.2

156.1

47.5

11.7

88600

28000

0.42

H

54.7

113.3

52.9

1872

93

452

91000

30000

0.44

MaMs          1

13.5

85.5

28

148.7

67.3

9.3

79000

20000

0.56

C

304

71

0

1382

94.5

38.1

86200

28000

0.5

0

139 4

77.2

138 2

0

207.9

148.9

88800

28000

0.5

J

47.8

106 5

462

180 2

88.7

389

91000

30000

0.46

E

72.6

144 5

945

207.9

0

634

79000

20000

0.43

F

11.7

83.7

38.1

146.9

63.4

0     -

80200

21000

0.41

Demand

14000

10000

8000

12000

10000

9000

 

 

 

Reference no: EM13285461

Questions Cloud

Find the amount that should be set aside today to yield : Find the amount that should be set aside today to yield the desired future amount.
How to prepare a buffer solution that has ammonia : How many grams of dry need to be added to 2.50 of a 0.700 solution of ammonia, , to prepare a buffer solution that has a of 8.65. for ammonia is.
How many electrons make up this charge : A sphere is charged with electrons to ?1 × 10^-5 C. How many electrons make up this charge
What revenues are projected for march : Revenue projections for the coming year are $47,500 for January and $50,000 for February. Cash receipts of $50,600 are expected in March. What revenues are projected for March?
Splash soft drinks case study : Splash Soft Drinks Inc. (SSD) has recently achieved sales that exceeded its expectations after it introduced a new beverage that was greatly welcomed by their customers. The company is currently considering opening a new plant to which some of the pr..
What are probabilities that the value of the noise exceeds : The noise voltage in an electric circuit can be modeled as a Gaussian random variable with 0 mean and 10^-4 standard deviation (a)What are the probabilities that the value of the noise exceeds 10^-4 and 4*10^-4
Find how much additional charge will flow from the battery : A parallel-plate air capacitor of area A = 21.9 cm2 and plate separation of d = 3.60 mm is charged by a battery to a voltage of 64.0 V. how much additional charge will flow from the battery
What percent increase is it forecasting in revenues : If Fleming expects to have $305,100 available from next years retained earnings, what percent increase is it forecasting in revenues?
Create a variable b containing 60 random numbers : Write a Matlab script to create a variable B containing 60 random numbers from 0 to 2. Next using a WHILE loop go through all 60 numbers and count the number of values of B that are below 1.4. Store this answer in the variable COUNT.

Reviews

Write a Review

Case Study Questions & Answers

  From the scenario, prioritize the attributes of golds reling

From the scenario, prioritize the attributes of Golds Reling's brand from the brand map presented in the scenario according to the attributes that you believe would be most important to the new tablet's target market. Provide support for your respons..

  Discuss critically infosys current and future strategy

Discuss critically Infosys current and future strategy. What advice would you give Kris Gopalakrishnan and KShop has resulted in information overload among staff. What operational measures would you suggest to overcome such challenges?

  Review tarmac business case for diversity

Review Tarmac's Business Case for Diversity and the Learning Resources. Think about Tarmac's approach to managing diversity and how it relates to organisational behaviour concepts and human resource processes.

  Enron case shared activity

Enron was the first nationwide natural gas pipeline network in the United States. As the company grew, executives shifted the company's primary focus from energy delivery and infrastructure to investing in the stock market.

  Ebay inc internet success or fairy tale

Read the case study "eBay Inc.: Internet Success or Fairy Tale? "and answer the question below,   Use the 2002 financial statement data to replicate the Meyer's report calculations that illustrate the conclusion based on the 2001 data reached in the ..

  Mintendo game girl case study

Which option delivers the maximum profit for the supply chain: Sandra's plan, Bill's plan, or no promotion plan at all? How does the answer change if a discount of $10 must be given to reach the same level of impact that the $5 discount received?

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