Deck 13: Supply Chain Logistic Networks

Question 1

A favorable labor climate might include all of the following except:

A) a good work ethic.
B) no union presence.
C) high average wages.
D) an educated work force.

Answer 1

C

Question 2

An important factor for locating new manufacturing plants is:

A) proximity to customers.
B) location of competitors.
C) proximity to markets.
D) favorable labor climate.

Answer 2

D

Question 3

Critical mass is a situation whereby several competing firms cluster near one location, and thus attract more customers than the total number who would shop at the same stores in scattered locations.

Answer 3

True

Question 4

When comparing several sites, typically a company will pick specific available site locations, then broaden their choices to communities, and finally to alternate regions.

Question 5

Quality of life issues include:

A) proximity to markets.
B) prevailing wage rates.
C) local and state taxes.
D) recreational facilities.

Question 6

Service location decisions are driven primarily by the operating costs at the locations under consideration.

Question 7

Which of the following statements about locating facilities in the service sector is best?

A) The factors that apply to manufacturing firms often also apply to service facilities, but the impact of the location on sales and customer satisfaction is an important addition.
B) Management should avoid locating facilities where competitors are already well established, as illustrated by new car showrooms.
C) Creating a critical mass is a strategy that avoids locating near competing firms.
D) "Site specific" factors are the main reason for locating warehousing and distribution operations near the customer.

Question 8

Many firms are concluding that large, centralized manufacturing facilities in low-cost countries with poorly trained workers are not sustainable.

Question 9

The center of gravity method considers a greater number of location factors than the break-even analysis.

Question 10

Two conditions must be met by factors selected to evaluate location decisions: the factors must have a high impact on the company's ability to meet its goals and the factors themselves must be affected by the location decision.

Question 11

What are the dominant factors that a manufacturing firm must consider when making a location decision?

Question 12

More than 80 percent of all relocations are within 10 miles of the first location, so usually the existing workforce is displaced.

Question 13

Repeated onsite expansion ultimately leads to diseconomies of scale.

Question 14

Consider any two factors that a service operation assigns the greatest weight when making a location decision. Using those two factors, identify one local service operation that likely used one of those factors as their top priority and a different service operation that likely used the other of your two factors as their dominant criterion. Briefly describe the business and justify your assignment of each factor as the overriding concern.

Question 15

When outbound transportation costs are a dominant factor, manufacturing facilities should be located close to suppliers and resources needed for production.

Question 16

If the customer must be physically present at the process, location is an important issue.

Question 17

Which of the following location factors was not found to dominate location decisions for new U.S. manufacturing plants?

A) proximity to the parent company's facilities
B) quality of life
C) proximity to competitors' facilities
D) favorable labor climate

Question 18

One dominant factor in locating manufacturing facilities is a favorable labor climate.

Question 19

Traffic flows are one dominant factor in locating manufacturing location.

Question 20

On average, it is less expensive to relocate a service-oriented business than a manufacturing business.

Question 21

Table 13.3
Durham Toy, Inc. has five distribution centers at the location coordinates given as follows. The monthly demand at each center is also given.

Pinkerton Company has four distribution centers located at the location coordinates given. The monthly demand at each center is also given.
Assume that management is considering locating its new plant at distribution center A. What is the load-distance score, assuming rectilinear distance?

A) less than 33,000
B) greater than 33,000 but less than 33,500
C) greater than 33,500 but less than 34,000
D) greater than 34,000

Question 22

Table 13.3
Durham Toy, Inc. has five distribution centers at the location coordinates given as follows. The monthly demand at each center is also given.

A single facility is needed to meet the demand of four regions depicted as follows:
If the plant is located at A, what is the total load-distance score, assuming Euclidean (straight line) distance?

A) less than or equal to 100
B) more than 100 but less than or equal to 140
C) more than 140 but less than or equal to 180
D) more than 180

Question 23

Table 13.2
A single facility is needed to meet the demands of four markets. The locations and demands of these four markets are shown below.

Use the information from Table 13.2. What are the x and y coordinates for the center of gravity?

A) x > 6, y > 7
B) x > 6, y < 7
C) x < 6, y > 7
D) x < 6, y < 7

Question 24

Table 13.3
Durham Toy, Inc. has five distribution centers at the location coordinates given as follows. The monthly demand at each center is also given.

Use the information in Table 13.3. If the plant is located at the center of gravity, what is the load-distance score, assuming rectilinear distance?

A) less than or equal to 1,500
B) more than 1,500 but less than or equal to 1,600
C) more than 1,600 but less than or equal to 1,700
D) more than 1,700

Question 25

Which of these is most likely to be classified as a "load" when using the load-distance model?

A) a process
B) a supplier
C) a shipment
D) a customer

Question 26

The center of gravity technique does not take into consideration the:

A) total volume of product any given site receives.
B) location of any given site.
C) number of locations that must be served.
D) balance of supply and demand.

Question 27

The load-distance model is used to minimize the total:

A) number of loads.
B) distance traveled.
C) cost of doing business.
D) profit of competitors.

Question 28

Table 13.1
Four departments are located in adjacent bays in the same loading dock. The distance between adjacent bays is 30 feet, the distance between bays separated by another (Alpha and Charlie, Bravo and Delta) is 60 feet, and the distance between Alpha and Delta is 90 feet. Material flows (loads) between departments are shown in the Table below.

Use the information from Table 13.1. Calculate the total load distance for this layout.

A) 3,930
B) 18,480
C) 9,240
D) 12,660

Question 29

Table 13.3
Durham Toy, Inc. has five distribution centers at the location coordinates given as follows. The monthly demand at each center is also given.

Consider the location of four distribution centers, A, B, C, and D, with the following location coordinates and shipping requirements per week.
Management is considering locating a new plant at the site of one of the four distribution centers. What is the load-distance score if the plant is located at distribution center A? (Use rectilinear distance.)

A) less than or equal to 4,500
B) greater than 4,500 but less than or equal to 5,000
C) greater than 5,000 but less than or equal to 5,500
D) greater than 5,500

Question 30

Table 13.6
Union Fork, Inc. has five distribution centers located at the location coordinates given as follows. The demand at each center is also given.

Use the information in Table 13.6. If a plant is located at a center of gravity, what is the load-distance score, assuming rectilinear distance?

A) less than or equal to 500
B) more than 500 but less than or equal to 550
C) more than 550 but less than or equal to 600
D) more than 600

Question 31

A quantitative method used to evaluate single locations based primarily on proximity is:

A) break-even analysis.
B) the transportation method.
C) a preference matrix.
D) the load-distance method.

Question 32

Table 13.4
Royal Flush Plumbing Supplies has the following demand forecasts for the five markets that it serves:

Use the information in Table 13.4. What is the center of gravity?

A) x < 7, y < 8
B) x > 7, y < 8
C) x < 7, y > 8
D) x > 7, y > 8

Question 33

Table 13.6
Union Fork, Inc. has five distribution centers located at the location coordinates given as follows. The demand at each center is also given.

Use the information in Table 13.6. What are the x and y coordinates for the center of gravity?

A) x > 7.5, y > 6
B) x > 7.5, y < 6
C) x < 7.5, y > 6
D) x < 7.5, y < 6

Question 34

Table 13.5
Paul's Pretzels manufactures and distributes gourmet pretzels for limited retail sales. Paul has determined the "demand points" and their relative locations as follows:

Use the information in Table 13.5. If Paul desires to locate a manufacturing facility at the center of gravity, what would be the x and y coordinates of the facility?

A) x < 14, y < 14
B) x < 14, y > 14
C) x < 15, y < 14
D) x < 15, y > 15

Question 35

When using the load-distance method to select a new location, the decision maker can represent the number of trips to be made, the number of customers needing a physical presence, or number of tons per week, among other measures, as loads.

Question 36

Table 13.1
Four departments are located in adjacent bays in the same loading dock. The distance between adjacent bays is 30 feet, the distance between bays separated by another (Alpha and Charlie, Bravo and Delta) is 60 feet, and the distance between Alpha and Delta is 90 feet. Material flows (loads) between departments are shown in the Table below.

Use the information from Table 13.1. Calculate the load distance for location Bravo.

A) 3,090
B) 3,300
C) 2,100
D) 1,200

Question 37

Table 13.1
Four departments are located in adjacent bays in the same loading dock. The distance between adjacent bays is 30 feet, the distance between bays separated by another (Alpha and Charlie, Bravo and Delta) is 60 feet, and the distance between Alpha and Delta is 90 feet. Material flows (loads) between departments are shown in the Table below.

Use the information from Table 13.1. Calculate the load distance for location Alpha.

A) 2,100
B) 6,450
C) 4,350
D) 2,250

Question 38

Table 13.4
Royal Flush Plumbing Supplies has the following demand forecasts for the five markets that it serves:

Use the information in Table 13.4. If Royal Flush decides to locate a warehouse at market D, what is the total load-distance score? (Use rectilinear distance.)

A) less than 400
B) between 401 and 450
C) between 451 and 500
D) more than 500

Question 39

Table 13.3
Durham Toy, Inc. has five distribution centers at the location coordinates given as follows. The monthly demand at each center is also given.

Use the information in Table 13.3. What are the x and y coordinates for the center of gravity?

A) x > 14, y > 15
B) x < 14, y > 15
C) x < 14, y < 15
D) x > 14, y < 15

Question 40

Table 13.5
Paul's Pretzels manufactures and distributes gourmet pretzels for limited retail sales. Paul has determined the "demand points" and their relative locations as follows:

Use the information in Table 13.5. If a facility were to be located at (15,15), what would be the load-distance score? (Assume rectilinear distance.)

A) less than or equal to 5,000
B) more than 5,000 but less than or equal to 5,200
C) more than 5,200 but less than or equal to 5,400
D) more than 5,400

Question 41

Table 13.7
Nuts-and-Bolts, Inc. wishes to find the best location for a plant that will satisfy customer demand in the following five areas.

Use the information in Table 13.7. If the plant is located at the coordinates (5, 5), what is the total load-distance score, assuming Euclidean (straight line) distance?

A) less than or equal to 600
B) more than 600 but less than or equal to 700
C) more than 700 but less than or equal to 800
D) more than 800

Question 42

Table 13.6
Union Fork, Inc. has five distribution centers located at the location coordinates given as follows. The demand at each center is also given.

Use the information in Table 13.6. What is the total load-distance score for the two plants if Plant 1 is located at the center of gravity serving A, B, and C, and Plant 2 is at the center of gravity serving D and E? (Assume Euclidean, or straight line, distance.)

A) less than or equal to 240
B) more than 240 but less than or equal to 260
C) more than 260 but less than or equal to 280
D) more than 280

Question 43

A decision maker using break-even analysis must assume that suppliers do not provide discounts for large orders.

Question 44

Table 13.2
A single facility is needed to meet the demands of four markets. The locations and demands of these four markets are shown below.

Using the data in Table 13.2, identify an optimal location for the new facility.

Question 45

The Burdell Company has four distribution centers located at the location coordinates given as follows. The monthly demand at each center is also given.
Management wants to build a new plant that would be located at the center of gravity of the four distribution centers. Which of the following options best represents the coordinates of the new plant location?

A) x coordinate is greater than 150 but less than 170; y coordinate is greater than 210 but less than 230.
B) x coordinate is greater than 150 but less than 170; y coordinate is greater than 230 but less than 250.
C) x coordinate is greater than 170 but less than 190; y coordinate is greater than 210 but less than 230.
D) x coordinate is greater than 170 but less than 190; y coordinate is greater than 230 but less than 250.

Question 46

A quantitative method used to evaluate multiple locations based on total cost of production or service operations is called:

A) break-even analysis.
B) the transportation method.
C) a preference matrix.
D) the load-distance method.

Question 47

A grower and shipper of fresh gourmet herbs has determined the following demand forecast for the five metropolitan markets that the firm serves. Based on your calculations of the center of gravity, where should the new herb farm be located?

A) x > 6, y > 8
B) x < 5, y > 5
C) x < 7, y > 6
D) x < 6, y >6

Question 48

Which of the following statements about break-even analysis is incorrect?

A) No start-up costs exist.
B) Economies of scale cannot be achieved.
C) Variable costs vary as output changes.
D) Fixed costs vary as output changes.

Question 49

Table 13.7
Nuts-and-Bolts, Inc. wishes to find the best location for a plant that will satisfy customer demand in the following five areas.

Use the information in Table 13.7. What are the x and y coordinates for the center of gravity?

A) x > 9, y > 14
B) x < 4, y > 2
C) x > 4.5, y < 2
D) x < 9, y < 6

Question 50

Table 13.6
Union Fork, Inc. has five distribution centers located at the location coordinates given as follows. The demand at each center is also given.

Use the information in Table 13.6. What is the total load-distance score for the two plants if Plant 1 is located at the center of gravity serving distribution centers A, B, and C, and Plant 2 is located at the center of gravity serving D and E? (Assume rectilinear distance.)

A) less than or equal to 300
B) more than 300 but less than or equal to 350
C) more than 350 but less than or equal to 400
D) more than 400

Question 51

Kiddie Clothes wishes to locate its warehouse so that it would serve its four different stores, described as follows. Based on the center of gravity, what are the x and y coordinates of the proposed warehouse location?

A) x is less than or equal to 3; y is less than or equal to 2.
B) x is less than or equal to 3; y is less than or equal to 2.5.
C) x is greater than or equal to 2.5; y is greater than or equal to 3.
D) x is less than or equal to 2.5; y is greater than or equal to 2.9.

Question 52

Table 13.7
Nuts-and-Bolts, Inc. wishes to find the best location for a plant that will satisfy customer demand in the following five areas.

Use the information in Table 13.7. If the plant is located at the coordinates (5, 5), what is the total load-distance score, assuming rectilinear distance?

A) less than or equal to 600
B) more than 600 but less than or equal to 700
C) more than 700 but less than or equal to 800
D) more than 800

Question 53

Break-even analysis can help a manager compare location alternatives on the basis of quantitative factors that can be expressed in terms of total cost.

Question 54

A national drugstore chain prefers to operate one outlet in a town that has four major market segments. The number of potential customers in each segment, along with the location coordinates, are given below.
Which would be the best location using the center of gravity method?

A) x > 10, y < 5
B) x < 10, y > 5
C) x < 9, y < 6
D) x < 11, y > 8

Question 55

Table 13.6
Union Fork, Inc. has five distribution centers located at the location coordinates given as follows. The demand at each center is also given.

Use the information in Table 13.6. Assume that two plants, rather than one, are to be located. Plant 1 serves distribution centers A, B, and C. Plant 2 serves distribution centers D and E. What is the center of gravity for plant 1?

A) x > 4, y > 7
B) x > 4, y < 7
C) x < 4, y > 7
D) x < 4, y < 7

Question 56

Bill Burns, district manager of the Pizza Palace, wishes to locate a new store in the metropolitan areas. Using the following information, what are the x and y coordinates for the center of gravity? Don't round your answer up or down before making your choice.

A) x is less than or equal to 4; y is less or equal to than 4.5.
B) x is greater than or equal to 5; y is greater than or equal to 3.5.
C) x is less than or equal to 3.5; y is less than or equal to 4.5.
D) x is less than or equal to 4; y is greater than or equal to 4.5.

Question 57

Table 13.8
An operations manager has narrowed down the search for a new plant for Tim! to three locations. Fixed and variable costs follow.

Use the information in Table 13.8 to determine the best statement.

A) Location C is the best one if volumes are quite high.
B) Location A becomes the most expensive place to produce at volumes in excess of 2,000.
C) The break-even quantity between A and B is less than or equal to 5,000 units.
D) The break-even quantity between C and B is more than 30,000 units.

Question 58

Table 13.8
An operations manager has narrowed down the search for a new plant for Tim! to three locations. Fixed and variable costs follow.

An operations manager has narrowed down the search for a new plant for McIntosh Enterprises to three locations. Fixed and variable costs follow:
Plot the total cost curves in the chart provided and identify the range over which each location would be best. Then use break-even analysis to calculate exactly the break-even quantity that defines each range.

Which of the following statements is correct?

A) Location C is the best one if volumes are quite low.
B) Location A becomes the most expensive place to produce at volumes less than 10,000.
C) The break-even quantity between A and B is less than or equal to 17,000 units.
D) The break-even quantity between C and B is more than 30,000 units.

Question 59

Table 13.8
An operations manager has narrowed down the search for a new plant for Tim! to three locations. Fixed and variable costs follow.

An operations manager has narrowed down the search for a new King Kola plant to three locations. Fixed and variable costs follow.
Plot the total cost curves in the chart provided and identify the range over which each location would be best. Then use break-even analysis to calculate exactly the break-even quantity that defines each range.

Which of the following statements is correct?

A) By inspection, it is apparent that only one site will be the best place to produce, even at dramatically different output volumes.
B) Location A becomes the most expensive place to produce at volumes in excess of 2,000.
C) The break-even quantity between A and B is less than or equal to 5,000 units.
D) The break-even quantity between C and B is more than 20,000 units.

Question 60

Table 13.1
Four departments are located in adjacent bays in the same loading dock. The distance between adjacent bays is 30 feet, the distance between bays separated by another (Alpha and Charlie, Bravo and Delta) is 60 feet, and the distance between Alpha and Delta is 90 feet. Material flows (loads) between departments are shown in the Table below.

Use the data in Table 13.1. What is the load distance score for locations Alpha, Bravo, Charlie and Delta? Once your calculation is complete, how might the assignment of departments be improved?

Question 61

Table 13.9
Sagebrush Company has four warehouses (A, B, C, and D) that require monthly shipments of 250, 200, 300, and 200 units per month, respectively. Its three plants (1, 2, and 3) have monthly capacities of 300, 400, and 250, respectively. Plant capacities, warehouse needs and shipping costs (in $) are shown in the following initial transportation method tableau. For example, the shipping cost from Plant 1 to Warehouse A is $17 per unit.

Use the information in Table 13.9. Which of these statements regarding the problem is correct?

A) Another plant must be added to the tableau because there are more warehouses than plants.
B) A dummy plant must be added due to production volumes.
C) A dummy warehouse must be added to solve this problem.
D) The simplex method can be used to solve this problem.

Question 62

The Nelson Company has four distribution centers (A, B, C, and D) that require shipments of 20, 30, 40, and 10 units per week, respectively. Its three plants (1, 2, and 3) have monthly capacities of 40, 30, and 30, respectively. Shipping costs (in $) follow.

A) It is not feasible in terms of plant capacities.
B) It is not feasible in terms of satisfying distribution center demands.
C) It is feasible, and the weekly shipping cost is less than $1,600.
D) It is feasible, and the weekly shipping cost is greater than $2,000.
What can be said about a plant that ships 40 units from 1 to C, 30 units from 2 to B, 20 units from 3 to A, and 10 units from 3 to D?

Question 63

Table 13.10
Sagebrush Company has four warehouses (A, B, C, and D) that require monthly shipments of 250, 200, 300, and 200 units per month, respectively. Its three plants (1, 2, and 3) have monthly capacities of 300, 400, and 450, respectively. Plant capacities, warehouse needs and shipping costs (in $) are shown in the following initial transportation method tableau. For example, the shipping cost from Plant 1 to Warehouse A is $17 per unit. A second table showing POM for Windows results from running this transportation problem is shown below the tableau.

Use the information in Table 13.10. Which of the following statements is False?

A) The plants have 200 more units of capacity than the warehouses need.
B) All of the four warehouses' needs are satisfied by the solution shown.
C) Total production by the three plants is 950 units.
D) The total production from plant #3 is 450 units.

Question 64

Table 13.8
An operations manager has narrowed down the search for a new plant for Tim! to three locations. Fixed and variable costs follow.

A dummy plant is useful for problems where the sum of the plant capacities equals the sum of the demands.

Question 65

Which of the following is not a step in setting up a transportation tableau?

A) Create a row for each plant being considered.
B) Remove the lowest and highest cost intersections from consideration.
C) Create a column for each warehouse being considered.
D) Add a column and a row for plant capacities and total demands.

Question 66

Table 13.9
Sagebrush Company has four warehouses (A, B, C, and D) that require monthly shipments of 250, 200, 300, and 200 units per month, respectively. Its three plants (1, 2, and 3) have monthly capacities of 300, 400, and 250, respectively. Plant capacities, warehouse needs and shipping costs (in $) are shown in the following initial transportation method tableau. For example, the shipping cost from Plant 1 to Warehouse A is $17 per unit.

Use the information in Table 13.9. What is the cost of a plan that ships 150 units from 1 to C, 150 units from 1 to D, 250 units from 2 to A, 150 units from 2 to C, 200 units from 3 to B, and 50 units from 3 to D?

A) less than $15,000
B) more than $15,000 but less than $16,000
C) more than $16,000 but less than $17,000
D) more than $17,000

Question 67

Table 13.11
The Neale Company has four distribution centers (A, B, C, and D) that require monthly shipments of 30,000, 24,000, 36,000, and 24,000 gallons of diesel fuel per month, respectively. Three wholesalers (1, 2, and 3) are willing to supply up to 36,000, 48,000 and 30,000 gallons, respectively. Total costs (in $) for both shipping and price per gallon follow. A transportation method tableau is provided below.

Use the information in Table 13.11. Which of the following statements about this scenario is not correct?

A) A dummy warehouse is required to complete the analysis.
B) It costs $2 per gallon to ship from Wholesaler 3 to Distribution Center D.
C) It costs $2 per gallon to ship one gallon from Wholesaler 2 to Distribution Center C.
D) It costs $2 per gallon to ship 20,000 gallons from Wholesaler 1 to Distribution Center D.

Question 68

Table 13.8
An operations manager has narrowed down the search for a new plant for Tim! to three locations. Fixed and variable costs follow.

Excel Products is planning a new warehouse to serve the Southeast. Locations A, B, and C are under consideration. Fixed and variable costs follow.
Which of the following statements is best?

A) Location A is the best one if volumes are quite high.
B) Location B is best over all volume levels.
C) The total cost of location A, if the volume is 250,000 units, is over $8,000,000.
D) The break-even quantity between A and B is more than 85,000 units but fewer than 200,000 units.

Question 69

Each cell in the interior of a transportation tableau not in the requirements row or capacity column is a(n) ________.

Question 70

Which of the following invalidates any analysis using the transportation method?

A) unequal supply and demand amounts
B) more sources than destinations
C) more destinations than sources
D) A non-linear increase in shipping costs

Question 71

Costs that are represented in each cell of a transportation tableau are based on ________.

Question 72

Table 13.11
The Neale Company has four distribution centers (A, B, C, and D) that require monthly shipments of 30,000, 24,000, 36,000, and 24,000 gallons of diesel fuel per month, respectively. Three wholesalers (1, 2, and 3) are willing to supply up to 36,000, 48,000 and 30,000 gallons, respectively. Total costs (in $) for both shipping and price per gallon follow. A transportation method tableau is provided below.

Use the information in Table 13.11. What can be said about a plan that ships 18,000 gallons from 1 to C; 18,000 gallons from 1 to D; 30,000 gallons from 2 to A; 18,000 gallons from 2 to C; 24,000 gallons from 3 to B; and 30,000 from 3 to D?

A) It is not feasible in terms of wholesaler availabilities.
B) It is not feasible in terms of satisfying distribution center demands.
C) It is feasible, and the total monthly cost is less than $223,000.
D) It is feasible, and the total monthly cost is greater than $227,000.

Question 73

The transportation method of production planning is a special case of:

A) linear programming.
B) integer programming.
C) queuing theory.
D) goal programming.

Question 74

Table 13.8
An operations manager has narrowed down the search for a new plant for Tim! to three locations. Fixed and variable costs follow.

Use the information in Table 13.8 to address this question. For what range of output is each location superior?

Question 75

Table 13.9
Sagebrush Company has four warehouses (A, B, C, and D) that require monthly shipments of 250, 200, 300, and 200 units per month, respectively. Its three plants (1, 2, and 3) have monthly capacities of 300, 400, and 250, respectively. Plant capacities, warehouse needs and shipping costs (in $) are shown in the following initial transportation method tableau. For example, the shipping cost from Plant 1 to Warehouse A is $17 per unit.

Use the information in Table 13.9. What can be said about a plan that ships 200 units from 1 to A, 100 units from 1 to B, 100 units from 2 to B, 300 units from 2 to C, and 250 units from 3 to D?

A) It is not feasible in terms of plant capacities.
B) It is not feasible in terms of satisfying warehouse demands.
C) It is feasible, but not the least-cost allocation pattern.
D) It is the optimal solution.

Question 76

Table 13.10
Sagebrush Company has four warehouses (A, B, C, and D) that require monthly shipments of 250, 200, 300, and 200 units per month, respectively. Its three plants (1, 2, and 3) have monthly capacities of 300, 400, and 450, respectively. Plant capacities, warehouse needs and shipping costs (in $) are shown in the following initial transportation method tableau. For example, the shipping cost from Plant 1 to Warehouse A is $17 per unit. A second table showing POM for Windows results from running this transportation problem is shown below the tableau.

Use the information in Table 13.10. The low cost solution indicates a total cost of:

A) $1,150.
B) $950.
C) $14,750.
D) The low cost solution is not provided in Table 13.10.

Question 77

If the total supply does not equal the total number of units demanded, then the modeler should use a(n) ________ warehouse as part of the transportation method.

Question 78

Table 13.8
An operations manager has narrowed down the search for a new plant for Tim! to three locations. Fixed and variable costs follow.

Excel Products is planning a new warehouse to serve the Southeast. Locations A, B, and C are under consideration. Fixed and variable costs follow.

For what range of volume is each location the best?

Question 79

Table 13.11
The Neale Company has four distribution centers (A, B, C, and D) that require monthly shipments of 30,000, 24,000, 36,000, and 24,000 gallons of diesel fuel per month, respectively. Three wholesalers (1, 2, and 3) are willing to supply up to 36,000, 48,000 and 30,000 gallons, respectively. Total costs (in $) for both shipping and price per gallon follow. A transportation method tableau is provided below.

Use the information in Table 13.11. What can be said about a plan that ships 30,000 gallons from 1 to A; 6,000 gallons from 1 to C; 24,000 gallons from 2 to B; 24,000 gallons from 2 to D; and 30,000 gallons from 3 to C?

A) It is not feasible in terms of wholesaler availabilities.
B) It is not feasible in terms of satisfying distribution center demands.
C) It is feasible, and the total monthly cost is less than or equal to $260,000.
D) It is feasible, and the total monthly cost is greater than $260,000.

Question 80

Table 13.8
An operations manager has narrowed down the search for a new plant for Tim! to three locations. Fixed and variable costs follow.

The transportation method provides optimal solutions for minimization of shipping costs in multiple facility location problems.