New York |
Atlanta |
Chicago |
San Diego |
|
Annual fixed cost of 200,000 plant |
$6 million |
$5.5 million |
$5.6 million |
$6.1 million |
Annual fixed cost of 400,000 plant |
$10 million |
$9.2 million |
$9.3 million |
$10.2 million |
East |
$211 |
$232 |
$238 |
$299 |
South |
$232 |
$212 |
$230 |
$280 |
Midwest |
$240 |
$230 |
$215 |
$270 |
West |
$300 |
$280 |
$270 |
$225 |
Boston |
Chicago |
Dallas |
Los Angeles |
Miami |
|
Chicago |
983 |
0 |
1205 |
2112 |
1390 |
Dallas |
1815 |
1205 |
0 |
801 |
1332 |
Miami |
1539 |
1390 |
1332 |
2757 |
0 |
a.) Calculate the required safety stock.
b.) Calculate the target inventory level.
c.) If, when she reviews her inventory of metformin, the pharmacist finds that she currently has 19,000 tablets, calculate the appropriate replenishment order quantity.
Transportation Cost per pound |
Demand (in pounds) |
X Coordinate |
Y Coordinate |
|
Sources |
||||
Hershey PA |
$1.50 |
1500 |
650 |
20 |
Philadelphia |
$1.25 |
1200 |
680 |
50 |
Baltimore |
$1.10 |
1000 |
780 |
68 |
Markets |
||||
Bangor |
$2.00 |
860 |
1250 |
1050 |
Boston |
$2.00 |
1020 |
810 |
940 |
Providence |
$2.00 |
980 |
800 |
900 |
Pittsburgh |
$2.00 |
950 |
450 |
20 |
New York |
$2.00 |
675 |
650 |
875 |
Trips Between Departments
Department |
A |
B |
C |
D |
E |
F |
A |
10 |
15 |
50 |
|||
B |
20 |
10 |
20 |
|||
C |
45 |
10 |
||||
D |
20 |
|||||
E |
||||||
F |
The current layout is shown below. Propose a new layout based upon the finding of your calculations.
A |
B |
C |
D |
E |
F |
Hint; Calculate load distance requirements for travel between departments for both existing and proposed layouts. Use 1 for distance between adjacent blocks (i.e., A -> B = 1; A -> C = 2)
Follow Us