Description

Need help setting up consaInventory Management

Your company keeps fleets of vehicles at a number of sites around the country. At each site the vehicles can be classified into two types: light and heavy. A heavy vehicle costs more per day, but it can do any task that a light vehicle can do. You would like to determine what mix of vehicles your company should have at each site. If you do not have enough vehicles of the appropriate size to meet the demand on a given day, you must rent the vehicles. Some cost data were collected on the cost of various vehicle types:

Vehicle Type              Daily fixed cost          Daily variable cost (if used)

Owned Light              $32                              $40

Owned Heavy                         $44                              $54

Rented Light               0                                  $175

Rented Heavy                         0                                 $225

At a particular site, your company collected demand data for the number of vehicles required on each of seven days:

Day     Lights             Heavies

1          6                      0

2          3                      2

3          5                      4

4          8                      3

5          2                      1

6          4                      4

7          1                      2

Based on just the above data, what is your recommendation for the number of vehicles to own of each type at this site?  What is your weekly cost?

Inventory Depletion

The R. R. Bean Company produces, packages, and distributes freeze-dried food for the camping and outdoor sportsman market. R. R. Bean is ready to introduce a new line of products based on a new drying technology that produces a higher quality, tastier food, so they want to discontinue their current line. The basic ingredients of the current line are dried fruit, dried meat and dried vegetables. There are two products in the current line: the "Weekender" and the "Expedition." In its close-out catalog, the selling prices of the two products are $3.80 and $7.00 per package, respectively. Handling and shipping costs are $1.50 per package for each package, which are provided at no charge. The "Weekender" package consists of 3 ounces of dried fruit, 7 ounces of dried meat, and 2 ounces of dried vegetables. The "Expedition" package has 5 ounces of dried fruit, 18 ounces of dried meat, and 5 ounces of dried vegetables. R. R. Bean would like to deplete its inventories of "old technology" fruit, meat, and vegetables before introducing the new line. The current inventories are 10,000 ounces, 25,000 ounces, and 12,000 ounces respectively of fruit, meat, and vegetables. The book values of these inventories are $2000, $2500, and $1800. Any leftover inventory will be given to the local animal shelter at no cost or benefit to R. R. Bean.  R. R. Bean is confident that it can sell all that it makes of the two products.  What combination of current products should they produce to sell?

Snow Removal

The city of Montreal maintains five snow-removal sites, where snow may be dumped after being collected from ploughed streets.  (Due to environmental constraints, dumping directly to the rivers is not an option.)  The annual capacities for the five sites (in 1000s of cubic meters) are as follows:

Montreal is divided into ten sectors for the purpose of snow removal.  The distances in Km (measured from the center of each sector) to the five dump sites are given in the following table:

Using historical snowfall data, the following amounts of snow (X1000 m3 can be anticipated for each sector:

It costs $0.10 to transport one cubic meter of snow one Km. 

If union restrictions require that the snow from each zone may only be dumped at one site, what is the least amount Montreal will have to spend on snow removal?  What is the decision?

Union Busting

If the Union allows snow from the sectors to be spread across different dump sites, what is the savings to the City?