Supply Chain Design at Ryan Electronics Co . Ryan is an(Answered)
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Question
?Supply Chain Design at Ryan Electronics Co.
Ryan is an electronics company whose supply chain is presently as follows:
?
 Two production facilities at Denver and Atlanta. Components from these are shipped to warehouses.? Production Capacities at each: 600 units at Denver and? 400 units at Atlanta
 Two warehouses:? Kansas City and Louisville. These warehouses are supplied by the production centers and in turn, supply the retail centers.? Storage Capacity at each warehouse is more than sufficient to store the entire production of Ryan.
 Four Retail Centers: Detroit, Miami, Dallas, New Orleans.? Expected Demands at these retails centers are: Detroit (200 units); Miami (150 units); Dallas (350 units); New Orleans (300 units)
Assuming that Transportation Costs are linear w.r.t. distance, the unit transportation costs are as follows:
(a) Find the distribution plan (from production centers to warehouses and thereafter, to retail centers) that minimizes total transportation cost for Ryan Electronics.? in MSExcel and solve it therein using MSExcel?s Solver module.? Your answer must consist of
?(i) Formulate the above as a linear program.? Indicate clearly the decision variables, constraints and the objective function.
(ii) Solve the linear program in (i) by using MS Excel.?? Submit a printed copy of the spreadsheet you used to model the program showing the optimal solution you obtained
(iii) State your results as a table which summarizes the optimal distribution plan and presents the results in the following format.
From  To  Units Shipped  Transportation Cost per unit  Total Cost of Transportation 
Denver  Kansas City 



Denver  Louisville 



Atlanta  Louisville 



Kansas City  Detroit 



Kansas City  Dallas 



Louisville  Miami 



Louisville  New Orleans 



Total Transportation Cost Across The Entire Supply Chain 

(b) Suppose that Ryan is contemplating the following modification to its current supply chain: shipping directly from Atlanta to New Orleans at $4/unit and from Dallas to New Orleans at $1/unit. ?What is the new optimal distribution plan from production centers to warehouses and thereafter, to retail centers? ?Your answer must consist of
(i) Formulate the above as a linear program.? Indicate clearly the decision variables, constraints and the objective function and how this formulation differs from the one in (a).
(ii) Solve the linear program in (i) by using MS Excel.?? Submit a printed copy of the spreadsheet you used to model the program showing the optimal solution you obtained
(iii) State your results as a table which summarizes the optimal distribution plan and presents the results in the following format.
From  To  Units Shipped  Transportation Cost per unit  Total Cost of Transportation 
Denver  Kansas City 



Denver  Louisville 



Atlanta  Louisville 



Atlanta  New Orleans 



Kansas City  Detroit 



Kansas City  Dallas 



Louisville  Miami 



Louisville  New Orleans 



Dallas  New Orleans 



Total Transportation Cost Across The Entire Supply Chain 

(c) Ryan is now considering the possibility of consolidating its retail markets to minimize transportation costs.? Suppose that there are no restrictions which retail center Ryan can supply to and each of the existing retail centers is capable of absorbing the entire 1000 units that Ryan produces.? What is the best selection of retail centers to supply and how much should be supplied from production centers to warehouses and thereafter, to retail centers?? Your answer must consist of
?(i) Formulate the above as a linear program.? Indicate clearly the decision variables, constraints and the objective function and how this formulation differs from the one in (a).
?(ii) Solve the linear program in (i) by using MS Excel.?? Submit a printed copy of the spreadsheet you used to model the program showing the optimal solution you obtained
?(iii) State your results as a table which summarizes the optimal distribution plan and presents the results in the following format.
From  To  Units Shipped  Transportation Cost per unit  Total Cost of Transportation 
Denver  Kansas City 



Denver  Louisville 



Atlanta  Louisville 



Kansas City  Detroit 



Kansas City  Dallas 



Louisville  Miami 



Louisville  New Orleans 



Total Transportation Cost Across The Entire Supply Chain 

(d) Ryan is now considering consolidating its production.? It still wishes to keep up the supply of 1000 units but wants to investigate if it is optimal for Ryan to consolidate production at only one of its production facilities.? Assume that capacity at each plant can be increased to absorb the entire demand of 100 units and that the cost of production at both Denver and Atlanta are identical.? What is the optimal production and transportation plan (from production centers to warehouses and thereafter, to retail centers) for Ryan under this scenario that minimizes total transportation costs? Your answer must consist of
(i) Formulate the above as a linear program.? Indicate clearly the decision variables, constraints and the objective function and how this formulation differs from the one in (a).
(ii) Solve the linear program in (i) by using MS Excel.?? Submit a printed copy of the spreadsheet you used to model the program showing the optimal solution you obtained
?(iii) State your results as a table which summarizes the optimal distribution plan and presents the results in the following format.
?
From  To  Units Shipped  Transportation Cost per unit  Total Cost of Transportation 
Denver  Kansas City 



Denver  Louisville 



Atlanta  Louisville 



Kansas City  Detroit 



Kansas City  Dallas 



Louisville  Miami 



Louisville  New Orleans 



Total Transportation Cost Across The Entire Supply Chain 

(15 points)? Question 2: Survey Sciences Inc (SSI).? SSI is a marketing research firm that does market surveys on behalf of its clients.? It has been recently contacted by a client to perform a survey for a new product line that will be targeted to the US population overall, but with a special niche market for Hispanic Americans.? The client has agreed to compensate SSI in full for the actual costs of the survey but has specified the following requirements for the survey.?
At least 2,300 U.S. households must be surveyed.
At least 1,000 households whose heads are ? 30 years old must be surveyed.
At least 600 households whose heads are between 31 and 50 must be surveyed.
Ensure that at least 15% of those surveyed live in a state that borders Mexico
Ensure that no more than 20% of those surveyed who are 51 years of age or over live in a state that borders Mexico
Because SSI conducts all its surveys in person, survey costs are high.? The cost accountants at SSI estimate of the costs of reaching people in each age and region category are as follows:
COST PER PERSON SURVEYED ($)  
REGION  AGE ? 30  AGE 3150  AGE ? 51 
State bordering Mexico  $7.50  $6.80  $5.50 
State not bordering Mexico  $6.90  $7.25  $6.10 
Since SSI would like to get this surveying project from this client, its goal is to design a survey plan that minimizes the total cost of conducting the survey.? Formulate this decision problem for SSI as a linear program. Your answer must consist of
(i) Formulate the above as a linear program.? Indicate clearly the decision variables, constraints and the objective function.
(ii) Solve the linear program in (i) by using MS Excel.?? Submit a printed copy of the spreadsheet you used to model the program showing the optimal solution you obtained
(iii) State your results as a table which summarizes the optimal survey plan and presents the results in the following format.
Survey Demographic Group  Number Surveyed In Optimal Survey Plan  Cost Of Surveying The Demographic Group 
30 or younger and in a border state 


3150 and in a border state 


51 or older and in a border state 


30 or younger and in a nonborder state 


3150 and in a nonborder state 


51 or older and in a nonborder state 


Totals 


MBA 701
Course Project 4 (75 points)
Linear Programming and Applications
60 points. Question 1 (Case Study) : Supply Chain Design at Ryan Electronics Co.
Ryan is an electronics company whose supply chain is presently as follows:
Two production facilities at Denver and Atlanta. Components from these are shipped to
warehouses. Production Capacities at each: 600 units at Denver and 400 units at Atlanta
Two warehouses: Kansas City and Louisville. These warehouses are supplied by the production
centers and in turn, supply the retail centers. Storage Capacity at each warehouse is more than
sufficient to store the entire production of Ryan.
Four Retail Centers: Detroit, Miami, Dallas, New Orleans. Expected Demands at these retails
centers are: Detroit (200 units); Miami (150 units); Dallas (350 units); New Orleans (300 units)
Assuming that Transportation Costs are linear w.r.t. distance, the unit transportation costs are as follows:
(a) Find the distribution plan (from production centers to warehouses and thereafter, to retail centers)
that minimizes total transportation cost for Ryan Electronics. in MSExcel and solve it therein using MSExcel?s Solver module. Your answer must consist of
5 points (i) Formulate the above as a linear program. Indicate clearly the decision variables,
constraints and the objective function.
5 points (ii) Solve the linear program in (i) by using MS Excel. Submit a printed copy of the
spreadsheet you used to model the program showing the optimal solution you obtained
5 points (iii) State your results as a table which summarizes the optimal distribution plan and
presents the results in the following format.
From
Denver
Denver
Atlanta
To
Units Shipped
Transportation
Cost per unit
Total Cost of Transportation
Kansas City
Louisville
Louisville
MBA701CourseProejct4????.1
Kansas
Detroit
City
Kansas
Dallas
City
Louisville Miami
Louisville New Orleans
Total Transportation Cost Across The Entire Supply Chain
(b) Suppose that Ryan is contemplating the following modification to its current supply chain: shipping
directly from Atlanta to New Orleans at $4/unit and from Dallas to New Orleans at $1/unit. What is the
new optimal distribution plan from production centers to warehouses and thereafter, to retail centers?
Your answer must consist of
5 points (i) Formulate the above as a linear program. Indicate clearly the decision variables,
constraints and the objective function and how this formulation differs from the one in (a).
5 points (ii) Solve the linear program in (i) by using MS Excel. Submit a printed copy of the
spreadsheet you used to model the program showing the optimal solution you obtained
5 points (iii) State your results as a table which summarizes the optimal distribution plan and
presents the results in the following format.
From
To
Units Shipped
Transportation
Cost per unit
Total Cost of Transportation
Denver
Kansas City
Denver
Louisville
Atlanta
Louisville
Atlanta
New Orleans
Kansas
Detroit
City
Kansas
Dallas
City
Louisville Miami
Louisville New Orleans
Dallas
New Orleans
Total Transportation Cost Across The Entire Supply Chain
(c) Ryan is now considering the possibility of consolidating its retail markets to minimize transportation
costs. Suppose that there are no restrictions which retail center Ryan can supply to and each of the
existing retail centers is capable of absorbing the entire 1000 units that Ryan produces. What is the best
selection of retail centers to supply and how much should be supplied from production centers to
warehouses and thereafter, to retail centers? Your answer must consist of
5 points (i) Formulate the above as a linear program. Indicate clearly the decision variables,
constraints and the objective function and how this formulation differs from the one in (a).
5 points (ii) Solve the linear program in (i) by using MS Excel. Submit a printed copy of the
spreadsheet you used to model the program showing the optimal solution you obtained
5 points (iii) State your results as a table which summarizes the optimal distribution plan and
presents the results in the following format.
MBA701CourseProejct4????.2
From
To
Units Shipped
Transportation
Cost per unit
Total Cost of Transportation
Denver
Kansas City
Denver
Louisville
Atlanta
Louisville
Kansas
Detroit
City
Kansas
Dallas
City
Louisville Miami
Louisville New Orleans
Total Transportation Cost Across The Entire Supply Chain
(d) Ryan is now considering consolidating its production. It still wishes to keep up the supply of 1000
units but wants to investigate if it is optimal for Ryan to consolidate production at only one of its
production facilities. Assume that capacity at each plant can be increased to absorb the entire demand
of 100 units and that the cost of production at both Denver and Atlanta are identical. What is the
optimal production and transportation plan (from production centers to warehouses and thereafter, to
retail centers) for Ryan under this scenario that minimizes total transportation costs? Your answer must
consist of
5 points (i) Formulate the above as a linear program. Indicate clearly the decision variables,
constraints and the objective function and how this formulation differs from the one in (a).
5 points (ii) Solve the linear program in (i) by using MS Excel. Submit a printed copy of the
spreadsheet you used to model the program showing the optimal solution you obtained
5 points (iii) State your results as a table which summarizes the optimal distribution plan and
presents the results in the following format.
From
To
Units Shipped
Transportation
Cost per unit
Total Cost of Transportation
Denver
Kansas City
Denver
Louisville
Atlanta
Louisville
Kansas
Detroit
City
Kansas
Dallas
City
Louisville Miami
Louisville New Orleans
Total Transportation Cost Across The Entire Supply Chain
(15 points) Question 2: Survey Sciences Inc (SSI). SSI is a marketing research firm that does market
surveys on behalf of its clients. It has been recently contacted by a client to perform a survey for a new
product line that will be targeted to the US population overall, but with a special niche market for
MBA701CourseProejct4????.3
Hispanic Americans. The client has agreed to compensate SSI in full for the actual costs of the survey but
has specified the following requirements for the survey.
1.
2.
3.
4.
5.
At least 2,300 U.S. households must be surveyed.
At least 1,000 households whose heads are ? 30 years old must be surveyed.
At least 600 households whose heads are between 31 and 50 must be surveyed.
Ensure that at least 15% of those surveyed live in a state that borders Mexico
Ensure that no more than 20% of those surveyed who are 51 years of age or over live in
a state that borders Mexico
Because SSI conducts all its surveys in person, survey costs are high. The cost accountants at SSI
estimate of the costs of reaching people in each age and region category are as follows:
COST PER PERSON SURVEYED ($)
REGION
AGE ? 30
AGE 3150
AGE ? 51
State bordering Mexico
$7.50
$6.80
$5.50
State not bordering Mexico
$6.90
$7.25
$6.10
Since SSI would like to get this surveying project from this client, its goal is to design a survey plan that
minimizes the total cost of conducting the survey. Formulate this decision problem for SSI as a linear
program. Your answer must consist of
5 points (i) Formulate the above as a linear program. Indicate clearly the decision variables,
constraints and the objective function.
5 points (ii) Solve the linear program in (i) by using MS Excel. Submit a printed copy of the
spreadsheet you used to model the program showing the optimal solution you obtained
5 points (iii) State your results as a table which summarizes the optimal survey plan and presents
the results in the following format.
Survey Demographic
Group
Number Surveyed In
Optimal Survey Plan
Cost Of Surveying
The Demographic
Group
30 or younger and in a
border state
3150 and in a border
state
51 or older and in a
border state
30 or younger and in a
nonborder state
3150 and in a nonborder state
51 or older and in a
nonborder state
Totals
MBA701CourseProejct4????.4
MBA701CourseProejct4????.5
Paper#9210383  Written in 27Jul2016
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