The Sullivan brothers run a distribution company. They are responsible for transporting the product from three factories to four possible warehouses for a private company. Theprivate company has already told them how much product each warehouse requires (demand) and how much each factory produces (supply). They've been told it doesn't matterwhich factory supplies what warehouse, and warehouses can be supplied by multiple factories. The shipping costs are listed below. Since the brothers get paid the same amount nomatter how they choose to ship, their goal is to minimize their costs (thus increasing their profit). Your goal is to setup the LP problem and solve the optimal schedule for thebrothers. To fill in the pink table next to Cost Function, you need to use the shipping costs from each factory to each warehouse given to you above. If a good or, in this case, factory/warehouse is involved, write down 1 in the related cell, and 0 otherwise. For example, to fill in cell E19, think whether Factory A is involved in the case of A:3 (i.e., when the productis being transported from Factory A to warehouse 3). Since the answer is yes, we would write down 1 in cell E19. To fill in the green table (Usage), use SUMPRODUCT function.Note that the number of products transported from each factory to each warehouse should go into the yellow table (you need to use Solver to find the optimum numbers). UseSUMPRODUCT to fill in the Minimize Total Cost cell (i.e., green cell). Note that the costs come from the pink table (one array in SUMPRODUCT), and number of productstransported from each factory to each warehouse comes from yellow table (the other array in SUMPRODUCT). Finally, use Solver to find the optimum values and minimum totaltransportation cost. Make sure you are adding proper constraints.A2 Factory3 Available Units Each Month456 Warehouse7 Demand8910 Per unit shipping costs111213141516 Cost Function1718 Constraints19 Factory A20 Factory B21 Factory C22 Warehouse 123 Warehouse 224 Warehouse 325 Warehouse 42627 Decsion Variables282930BCA:1A65110FactoryABC20A.110011000A:2DB80215120112515A:21000100EC3032012211A:3To warehouse15141818A:310001010FA:4450318182130A:41000001B:1G430212711B:10101000B:2H14B20100100B:3I18B:301001010B:4J21B40100001C:1K25C:10011000C:2L18C20010100C:3M21C:30010010C4N27C:400ol10001OMinimizeTotalUsage0<=0 <=0 <=0 >=0 >=0 >=0 >=PQQuantityRAvailable/Demanded65803010152050S

For this question, I will formulate the Excel spreadsheet model, Then, I will solve this model using…

Answered: 2 Factory 3 Available Units Each Month…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section: Chapter Questions

Problem 68P

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Located in the picturesque Berkshire Mountains of Western Massachusetts, Ski Butternut has been a family-owned, family-oriented ski destination for more than 50 years. The resort includes 22 trails for downhill skiing and snowboarding, two terrain parks for riding, and a dedicated area for snow tubing. Although Ski Butternut hosts some non-ski events during summer and fall, its business goes into high gear when snowy weather arrives, bringing skiers and riders from across Massachusetts, Connecticut, New York, and New Jersey. Matt Sawyer, Ski Butternuts director of marketing, says the primary target market has always been families with young children who are seeking affordable skiing. Everything from the snack-bar menus to the ski-shop merchandise is presented with families in mind. So that parents can have fun in the snow without worry, the resort has a Childrens Center for children who are too young to ski or have no interest. Fifth-graders are invited to ski for free when accompanied by an adult who buys an adult lift ticket. The resort also created two terrain parks for young snowboarders who were clamoring for a more exciting riding experience. Without the terrain parks, Sawyer says, these boarders would have asked their parents to take them to competing mountains in Vermont. Ski Butternuts research shows that first-timers are a particularly important segment, because they tend to have a strong allegiance to the resort where they learn to ski. First-timers typically visit the resort seven times before seeking out more challenging mountains. As a result, Ski Butternut has made teaching first-timers to ski or snowboard one of its specialties. For this market, the resort bundles ski or board rentals, lift tickets, and also offers a wide range of individual and group lessons for all ages and abilities at a value price. Because Ski Butternut has trails for different skill levels, beginners can challenge themselves by changing trails within the resort once they feel confident. Ski Butternut also targets seniors and college students. Knowing that weekends are the busiest period, the resort offers special midweek prices to attract seniors who have free time to ski on weekdays. College students are particularly value-conscious, and they often travel to ski resorts as a group. As a result, Ski Butternut offers weekend and holiday discounts to bring in large numbers of students who would otherwise ski elsewhere. Thanks to Facebook, Twitter, and other social media, students quickly spread the word about special pricing, which enhances Ski Butternuts ability to reach this key segment. In addition, the resort highlights discount pricing for families when targeting specific segments, such as scout troops, military personnel, emergency services personnel, and members of local ski clubs. Another segment Ski Butternut has selected for marketing attention is ski racers. The resort features professional coaching, lessons, and programs for ski racers in the age group of 8 to 20. Sawyer notes that these ski racers are extremely dedicated to training, which means theyre on the slopes as often as possible, a positive for the resorts attendance and revenue. To stay in touch with racers, Ski Butternut has a special website and a dedicated Facebook page. Sawyer conducts up to 1,200 customer surveys every year to better understand who his customers are and what they need. He also compares the results with skiers who visit mountains of a similar size in other areas. Digging deeper, he analyzes data drawn from the ski shops rental business to build a detailed picture of customers demographics, abilities, and preferences. Based on this research, he knows that the typical family at Ski Butternut consists of two children under age 18 who ski or ride, and at least one parent who skis. Because they can obtain so much information from and about their customers, Sawyer and his team are able to make better decisions about the marketing mix for each segment. By better matching the media with the audience, they get a better response from advertising, e-mail messages, and other marketing communications. As one example, they found that 15 percent of the visitors to Ski Butternuts website were using a smartphone to access the site. Sawyer has now created a special version of the site specifically for mobile use and created a text-message contest to engage skiers who have smartphones.16 What role do geographic variables play in Ski Butternuts segmentation and targeting?
Located in the picturesque Berkshire Mountains of Western Massachusetts, Ski Butternut has been a family-owned, family-oriented ski destination for more than 50 years. The resort includes 22 trails for downhill skiing and snowboarding, two terrain parks for riding, and a dedicated area for snow tubing. Although Ski Butternut hosts some non-ski events during summer and fall, its business goes into high gear when snowy weather arrives, bringing skiers and riders from across Massachusetts, Connecticut, New York, and New Jersey. Matt Sawyer, Ski Butternuts director of marketing, says the primary target market has always been families with young children who are seeking affordable skiing. Everything from the snack-bar menus to the ski-shop merchandise is presented with families in mind. So that parents can have fun in the snow without worry, the resort has a Childrens Center for children who are too young to ski or have no interest. Fifth-graders are invited to ski for free when accompanied by an adult who buys an adult lift ticket. The resort also created two terrain parks for young snowboarders who were clamoring for a more exciting riding experience. Without the terrain parks, Sawyer says, these boarders would have asked their parents to take them to competing mountains in Vermont. Ski Butternuts research shows that first-timers are a particularly important segment, because they tend to have a strong allegiance to the resort where they learn to ski. First-timers typically visit the resort seven times before seeking out more challenging mountains. As a result, Ski Butternut has made teaching first-timers to ski or snowboard one of its specialties. For this market, the resort bundles ski or board rentals, lift tickets, and also offers a wide range of individual and group lessons for all ages and abilities at a value price. Because Ski Butternut has trails for different skill levels, beginners can challenge themselves by changing trails within the resort once they feel confident. Ski Butternut also targets seniors and college students. Knowing that weekends are the busiest period, the resort offers special midweek prices to attract seniors who have free time to ski on weekdays. College students are particularly value-conscious, and they often travel to ski resorts as a group. As a result, Ski Butternut offers weekend and holiday discounts to bring in large numbers of students who would otherwise ski elsewhere. Thanks to Facebook, Twitter, and other social media, students quickly spread the word about special pricing, which enhances Ski Butternuts ability to reach this key segment. In addition, the resort highlights discount pricing for families when targeting specific segments, such as scout troops, military personnel, emergency services personnel, and members of local ski clubs. Another segment Ski Butternut has selected for marketing attention is ski racers. The resort features professional coaching, lessons, and programs for ski racers in the age group of 8 to 20. Sawyer notes that these ski racers are extremely dedicated to training, which means theyre on the slopes as often as possible, a positive for the resorts attendance and revenue. To stay in touch with racers, Ski Butternut has a special website and a dedicated Facebook page. Sawyer conducts up to 1,200 customer surveys every year to better understand who his customers are and what they need. He also compares the results with skiers who visit mountains of a similar size in other areas. Digging deeper, he analyzes data drawn from the ski shops rental business to build a detailed picture of customers demographics, abilities, and preferences. Based on this research, he knows that the typical family at Ski Butternut consists of two children under age 18 who ski or ride, and at least one parent who skis. Because they can obtain so much information from and about their customers, Sawyer and his team are able to make better decisions about the marketing mix for each segment. By better matching the media with the audience, they get a better response from advertising, e-mail messages, and other marketing communications. As one example, they found that 15 percent of the visitors to Ski Butternuts website were using a smartphone to access the site. Sawyer has now created a special version of the site specifically for mobile use and created a text-message contest to engage skiers who have smartphones.16 Of the four categories of variables, which one seems to be the most central to Ski Butternuts segmentation strategy, and why?
Located in the picturesque Berkshire Mountains of Western Massachusetts, Ski Butternut has been a family-owned, family-oriented ski destination for more than 50 years. The resort includes 22 trails for downhill skiing and snowboarding, two terrain parks for riding, and a dedicated area for snow tubing. Although Ski Butternut hosts some non-ski events during summer and fall, its business goes into high gear when snowy weather arrives, bringing skiers and riders from across Massachusetts, Connecticut, New York, and New Jersey. Matt Sawyer, Ski Butternuts director of marketing, says the primary target market has always been families with young children who are seeking affordable skiing. Everything from the snack-bar menus to the ski-shop merchandise is presented with families in mind. So that parents can have fun in the snow without worry, the resort has a Childrens Center for children who are too young to ski or have no interest. Fifth-graders are invited to ski for free when accompanied by an adult who buys an adult lift ticket. The resort also created two terrain parks for young snowboarders who were clamoring for a more exciting riding experience. Without the terrain parks, Sawyer says, these boarders would have asked their parents to take them to competing mountains in Vermont. Ski Butternuts research shows that first-timers are a particularly important segment, because they tend to have a strong allegiance to the resort where they learn to ski. First-timers typically visit the resort seven times before seeking out more challenging mountains. As a result, Ski Butternut has made teaching first-timers to ski or snowboard one of its specialties. For this market, the resort bundles ski or board rentals, lift tickets, and also offers a wide range of individual and group lessons for all ages and abilities at a value price. Because Ski Butternut has trails for different skill levels, beginners can challenge themselves by changing trails within the resort once they feel confident. Ski Butternut also targets seniors and college students. Knowing that weekends are the busiest period, the resort offers special midweek prices to attract seniors who have free time to ski on weekdays. College students are particularly value-conscious, and they often travel to ski resorts as a group. As a result, Ski Butternut offers weekend and holiday discounts to bring in large numbers of students who would otherwise ski elsewhere. Thanks to Facebook, Twitter, and other social media, students quickly spread the word about special pricing, which enhances Ski Butternuts ability to reach this key segment. In addition, the resort highlights discount pricing for families when targeting specific segments, such as scout troops, military personnel, emergency services personnel, and members of local ski clubs. Another segment Ski Butternut has selected for marketing attention is ski racers. The resort features professional coaching, lessons, and programs for ski racers in the age group of 8 to 20. Sawyer notes that these ski racers are extremely dedicated to training, which means theyre on the slopes as often as possible, a positive for the resorts attendance and revenue. To stay in touch with racers, Ski Butternut has a special website and a dedicated Facebook page. Sawyer conducts up to 1,200 customer surveys every year to better understand who his customers are and what they need. He also compares the results with skiers who visit mountains of a similar size in other areas. Digging deeper, he analyzes data drawn from the ski shops rental business to build a detailed picture of customers demographics, abilities, and preferences. Based on this research, he knows that the typical family at Ski Butternut consists of two children under age 18 who ski or ride, and at least one parent who skis. Because they can obtain so much information from and about their customers, Sawyer and his team are able to make better decisions about the marketing mix for each segment. By better matching the media with the audience, they get a better response from advertising, e-mail messages, and other marketing communications. As one example, they found that 15 percent of the visitors to Ski Butternuts website were using a smartphone to access the site. Sawyer has now created a special version of the site specifically for mobile use and created a text-message contest to engage skiers who have smartphones.16 How is Ski Butternut applying behavioristic variables in its segmentation strategy? Explain your answer.
The Iteration 2 of the given transportation model by NWCR is optimal. What is the delivery schedule of source Z and what does the shipment cost? SOURCE DEMAND X Y N OZ-R; 1000 OZ-Q; 1100 OZ-R; 100 OZ-S; 250 P 75 8 12 11 DESTINATION Q 80 5 8 11 R 120 7 10 10 S 50 11 13 14 SUPPLY 100 125 100 325
3. What is meant by the concept of derived demand? Why is it so important in the area of transportation for shippers and carriers? Does this concept have application in other area, give some examples? 4. Explain the difference between elastic and inelastic demand. Why are the two concepts important to transportation demand? 5. The aggregate demand for transportation service is said to be inelastic while the demand for an individual mode or carrier is often elastic. Explain why this is important to carriers and shippers. 6. Explain the concept of total landed cost as it related to transportation. How does it influence market boundaries?
You have decided to start a door-to-dorm laundry service for the college students atthe local university. Students log on to your Web site and provide specific information tocreate an account including address information needed for pickup and delivery plus credit,charge, or debit card information for payment. At the time of the initial pickup, students aregiven a large plastic bag that they fill with their laundry. You pick up the laundry and wash,dry, fold, and return it within one week. Once the student has created an account, they cantext, email, or logon onto the Web site to request future pickups.Questions:1. Define the basic functions that this Web site must perform in order to meet thebasic needs of the laundry service as well as attract and maintain the interests ofstudents.2. What are some things you might do to entice students to return time and time againto your Web site?3. What actions can you take to increase traffic and draw students to your Web site? 4. Can you identify…
SRS Limited is a manufacturing company in Asia (China and India) specializing in bicycles that they sell to the USA, Canada, and Africa. Recently they acquired JAP Bicycle in Jamaica and supplying them with bikes and parts. They want to get in the automatic wheelchair for the physical challenge. SRS Limited contracted you as a transportation consultant to see their shipment from Asia to Canada, the East and West coast of the USA, Jamaica, and Africa. a. Differentiate the difference between intra-modal and inter-modal and why you will have recommended one over the other.
Super Auto Company rented a warehouse in Halifax, NS to store its engines valued at $500,000. The engines need to be shipped to the Montreal, QC, plant. The annual holding cost rate for auto engine has been estimated at 15%. There are five shipping companies available. Their delivery time and costs are listed in the table below. Which carrier is most economical?Carrier Delivery Time (Days) CostA 20 $500B 15 $800C 12 $1200D 8 $1600E 5 $200
A company ships LTL to customers in a market in the Midwest at an average costof $40 per cwt. It proposes establishing a distribution center in this market. TLshipment costs to the DC would be $20 per cwt., the estimated inventory carryingcosts are $5 per cwt., and the local cartage (LTL) cost is estimated at $10 per cwt.If the annual shipped volume is 100,000 cwt., what will the annual savings be byestablishing the distribution center?
Suppose there is a clothing manufacturer in Peru that regularly ships products to the US. The Peruvian manufacturer clothing for the US at a rate of 3,000 pounds every week. Shipments are sent from Peru to the US at periodic intervals. There is a fixed cost for each shipment of $2000. There is also a transportation cost that depends on the shipment size, using the transportation rates shown in the table below. Shipment size Rate in $/cwt <5,000 lbs 800 5,000 – 10,000 lbs 600 >10,000 lbs 300 a) Suppose there is also an inventory cost of $1 per pound for each week products are held by the manufacturer before they are sent. If the Peruvian manufacturer sends a shipment to the US every three weeks, then what would be the total annual cost? b) Now suppose the inventory cost is not known (it is not $1 per pound per week as in part a). If the Peruvian manufacturer was to send a shipment every five weeks (not as in part a), then how large can the…
Suppose that you have a fleet of dry bulk, tanker and combined carriers. You should determine a chartering strategy for the vessels in accordance with the changes in the freight market.
The Texas Gladiators won the Super Bowl last year. As a result, sportswear such as hats, sweatshirts, sweatpants, and jackets with the Gladiator’s logo are popular. The Gladiators operate an apparel store outside the football stadium. It is near a busy highway, so the store has heavy customer traffic throughout the year, not just on game days. In addition, the stadium has high school or college football and soccer games almost every week in the fall, and baseball games in the spring and summer. The most popular single item the stadium store sells is a red and silver baseball style cap with the Gladiators’ logo on it. The cap has an elastic headband inside it, which conforms to different head sizes. However, the store has had a difficult time keeping the cap in stock, especially during the time between the placement and receipt of an order. Often customers come to the store just for the hat; when it is not in stock, customers are upset, and the store management believes they tend to go…

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