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a. For the week of February 14, how many pairs of shoes should be produced in
Tallahassee? in Tucson?
b. What is Socker Shoes’ minimum cost shipping pattern for the week of February
14? What will be the total shipping cost?
CD6.2. Consider the Socker Shoe problem in problem CD6.1.
a. What is the largest value for the shipping cost from Tucson to Riverside for
which this solution remains optimal?
b. Suppose that the maximum weekly production capacity at each plant were
15,000 instead of 19,000. What is the new minimum cost shipping pattern?
What are the ramifications of this situation? Do you think this minimum cost
solution is tolerable? Explain.
c. Suppose that weekly production capacity is 25,000 at Tallahassee and 25,000
at Tucson. What is the new optimal shipping pattern? How should production
be scheduled between the two plants? Does this seem practical and sensible
from a management point of view?
CD6.3. Consider the Socker Shoe problem in problem CD6.1. Suppose Socker decided to
locate a plant in Juarez, Mexico, which is also capable of producing 19,000 pairs
of shoes per week. (It will therefore change the ‘‘Made in the USA’’ slogan to
‘‘Made in North America.’’)
Mexican drivers’ wages and benefits are lower, a factor that has been taken
into account in the following estimates of the shipping cost (per truckload) from
Juarez to the warehouse distribution centers:
To
Allentown Gary Houston Riverside
From
Juarez $2800 $2400 $2000 $1500
a. Suppose a tariff of $2 per pair of shoes from Mexico exists. If this plant were
in operation, what is the effect on the production schedule for the week of
CD-356 Additional Problems and Cases
February 14 given that production costs per shoe are the same for the Juarez
plant as for the Tallahassee and Tucson plants?
b. Mexican production costs are substantially lower than U.S. costs, for both
labor and material. Estimates indicate that overall production costs in Mexico
are only 40% of U.S. costs. Currently, it costs roughly $5.00 to produce each
pair of sneakers in the United States. Considering both the tariff costs and the
savings in production costs, what would be the effect on the production sched-
ule for the week of February 14?
c. Suppose that under union contract, Socker Shoe has agreed to produce at
least 30,000 pairs of sneakers each week in the United States. Modify your
formulation of part (b) and express the results in a transportation format. Solve
for the optimal production and shipping schedule for the week of February 14.
d. Under the North American Free Trade Agreement (NAFTA), all tariffs between
Mexico and the United States will be eliminated. At the same time, Mexican
wages should rise. Assume that the increase in driver wages would add $400
per truckload to the figures given above. To what level (in terms of the per-
centage of U.S. production costs) would Mexican production costs have to rise
for there to be no difference between producing all the units in the United
States and producing some units in Mexico?
CD6.4. TransGlobal Airlines (TGA), based in New York City, is a charter airline with seven
pilots. In assigning routes, the most senior pilot chooses first, then the next most
senior, and so on. TGA discovered, however, that some pilots had very little pref-
erence, while others cared a great deal about which route they were assigned.
Hence, a senior pilot sometimes selected a route that a more junior pilot would
have preferred, even though the senior pilot was ambivalent about his or her
choice.
As a result of complaints from some of the junior pilots, TGA is considering
implementing a new policy. Each pilot, regardless of seniority, would rate in nu-
merical order his or her five most preferred cities as well as standby and vacation
preference. (Each period, one pilot is on standby and another pilot is on vacation.)
TGA would then create a schedule that maximizes overall pilot satisfaction (giving
the lowest total overall preference value).
a. Given the following rankings submitted by the pilots for the current scheduling
period, what schedule should be assigned?
Route
London Paris Moscow Hawaii Tokyo Standby Vacation
Captain Smith 1 2 5 3 4 6 7
Captain Jones 2 1 7 3 6 4 5
Captain Heinz 7 2 6 3 4 5 1
Captain Chang 2 1 6 4 7 5 3
Captain Wells 1 3 7 2 4 6 5
Captain Blinn 2 3 7 1 6 5 4
Captain Klein 5 4 7 3 2 6 1
b. The pilots are listed in order of seniority. Explain why Captain Smith and Cap-
tain Jones, the two most senior pilots, are particularly upset with this period’s
schedule.
CD6.5. Consider the TGA problem in problem CD6.4. When TGA attempted to schedule
pilots using the new policy, it found that there can be many options for the total
minimal ranked schedule. Furthermore, sometimes the most senior pilots are
relegated to routes they truly do not prefer, while more junior pilots receive their
first choice. Another problem is that such a ranking procedure does not show the
depth of displeasure between one route and the next. For example, Captain Smith
may be relatively indifferent to the London and Paris routes, but certainly prefers
either to Hawaii (his third choice).
Extra Problems for Chapter 6 CD-357
In an effort to take seniority into account, a young management consultant
has suggested another method. Each pilot would receive 10 points for each year
of service to distribute in any manner among the five routes, standby, and vaca-
tion. Suppose this method yielded the following point scores for this period.
Route
London Paris Moscow Hawaii Tokyo Standby Vacation
Captain Smith 115 115 0 0 0 0 0
Captain Jones 50 150 0 10 0 0 0
Captain Heinz 0 50 0 50 50 0 50
Captain Chang 75 100 0 0 0 0 15
Captain Wells 160 0 0 0 0 0 0
Captain Blinn 0 0 0 80 0 0 0
Captain Klein 20 10 10 1 4 3 2
a. Construct a lost opportunity matrix from these points by replacing the num-
bers in each column by the difference between the numbers and the maximum
number in the column.
b. Solve the optimal assignment using this approach.
c. Why is Captain Smith still unhappy? How could Captain Smith be assured of
always getting his first preference using this approach?
d. List some other potential pitfalls that might occur using this approach. Sug-
gest other approaches that might be fairer.
CD6.6. The Orange County Transportation Commission is planning to develop a road
system linking Mission Viejo (City 1) and Fullerton (City 10). Two proposals are
under serious consideration:
a. A series of six-lane ‘‘superstreets’’ linking all 10 Orange County cities between
Mission Viejo and Fullerton.
b. A 10-lane freeway extension connecting Mission Viejo with Fullerton (which
does not necessarily pass through all 10 cities).
Forecasts indicate that either proposal will improve north-south traffic flow
through the county and ease traffic congestion on other secondary streets. The
proposed transportation corridors are depicted in the following network, including
mileages between various Orange County cities.
5
2 5
9 8
6
2
8
7 8
Mission Viejo 4
1 7
4 7 11
12
1
5
5
10
8
2
3 3 9 Fullerton
8
6 9
already played three of the four teams—Texas (UT), Arizona State (ASU), and
Florida State (FSU)—and is very familiar with its other opponent, California State
University, Fullerton (CSUF).
WSU has four starting pitchers and will start a different one against each
team. Based on past performance, the WSU coach has compiled an effectiveness
statistic for each pitcher based on the pitcher’s and the opponent team’s strengths
and weaknesses. He has used these statistics throughout the year, which may
account for his successful 45–12 won–lost record. The effectiveness statistics for
these opponents are as follows.
EFFECTIVENESS FACTORS
UT ASU FSU CSUF
Clyde Rollins 62 65 80 50
Carlos Pascual 76 70 82 55
Sid Thompson 75 40 77 57
Ted Quillici 45 48 50 36
a. Based on these factors, which pitcher should WSU start against each team to
maximize the total overall effectiveness rating?
b. Suppose the WSU coach will let a pitcher start up to two games. Modify the
problem and solve first as an assignment problem and then as a transportation
problem.
c. Use the transportation model format to determine the starting pitchers if the
WSU coach will allow a pitcher to start as many as three games.
CD6.8. During the early 1970s, the political scandal Watergate shook the United States
and toppled a presidency. While there were many aspects to the episode (robbery,
enemies lists, abuse of power, cover-ups, etc.), a key component was the ‘‘laun-
dering’’ of funds from big money contributors to campaign coffers. This practice
consists of channeling a large ‘‘gift’’ of money through various banks and individ-
uals so that its source cannot be traced. Unfortunately, such activities continue
today as evidenced by congressional investigations beginning in 1997.
Suppose millionaire I. S. Halverson has $5000 (in reality, he would probably
have 10 or 100 times this amount) that he would like to donate ‘‘anonymously’’
to the Independent National Party (INP). He might first split the money up in
smaller units and deposit the money in several bank accounts spread throughout
the world. Money from these accounts could be mixed or further divided and sent
to other accounts or individuals, who, in turn, would do the same, until several
checks for $1000 or less eventually arrive at party headquarters.
To avert suspicion, a limit has been placed on the amount of each transaction
between intermediaries. These limits are given in the following network depicting
1500
1 6
200
30
0 4
00
0
20
10
400
10
100
00
2000
0
2 100 5
0 10
00
I.S. Halverson
0
25
200 INP
0
1000
Once the units are manufactured, they are shipped to central distribution
locations in Florida, Texas, and California, where they are ultimately purchased
by retailers. The demand for motorhomes at the distribution locations for this
month’s production is as follows.
DEMAND FOR MOTORHOMES
Florida Texas California
Grand Cruiser 100 50 150
Traveler 200 100 300
Weekender 225 175 250
35 40
1 2 3
49
43
20
29
42
47 51
26
70
4 STAGE 30 5
71
32
33
60
79
6 7
62
81
47
75
43
61
77
8 9
70
26
31 44
62 55
10 12 11
CD6.11. The small rural town of Campton has only one elementary school. Beginning early
every morning, a school bus leaves the school, picks up children at five stops,
and returns to the school. The following table gives the distances between the
stops.
MILES BETWEEN PICKUP POINTS
Old General
Crossroad Willow Creek Jones House Highway Store Red Barn
School 6 29 24 10 25 12
Crossroad 19 21 20 10 8
Willow Creek 5 27 15 7
Jones House 16 26 4
Old Highway 37 11
General Store 18
a. What is the minimum total distance the school bus must travel each morning?
b. If the school bus averages 30 miles per hour, at what time must the school
bus leave the school each morning in order to deliver the children to the school
by 7:55 A.M. (5 minutes before school starts)?
c. Prepare a bus schedule giving the pickup time at each stop if the bus averages
30 miles per hour.
CD6.12. The Campton Elementary School (problem CD6.11) has been concerned about
vandalism that has occurred to the school bus while it is parked overnight in the
school parking lot. Accordingly, it has found a secure location eight miles from
the school, where the bus can be parked overnight. The distances from the bus
facility to the pickup sites are as follows.
Willow Jones Old General
Crossroad Creek House Highway Store Red Barn
Bus facility 14 22 20 18 30 17
a. What is the minimum total distance the school bus must travel each morning?
(Be sure that the last route traveled is the one from the school back to the bus
facility.)
b. If the school bus averages 30 miles per hour, at what time must the bus leave
the secure location each morning in order to deliver the children to the school
by 7:55 A.M. (5 minutes before school starts)?
c. Prepare a bus schedule giving the pickup time at each stop if the bus averages
30 miles per hour.
Extra Problems for Chapter 6 CD-361
CD6.13. John Stanford is at the end of a two-year lease on his Lincoln Town Car, and,
although he is determined to drive a Lincoln Town Car for the next four years
(until his twins go to college), he simply refuses to lease another car, claiming,
‘‘Ownership is the only way.’’ John can either purchase his two-year-old Lincoln
or purchase a new one. At the start of any subsequent year, he can trade in his
Lincoln for a new one. At the end of the fourth year, however, he will definitely
trade in his Lincoln for a Porsche, which he and his wife will share.
John would like to determine the optimal purchase/trade-in policy for the
next four years. To aid him in his decision process, the salesperson at the Lincoln-
Mercury/Porsche dealership (in whom John places complete trust) has given him
the following information.
PROJECTED COST OF A NEW LINCOLN TOWN CAR
This Year Year 2 Year 3 Year 4
$40,000 $42,000 $45,000 $50,000
Operating
Cost
Age at 4
Beginning of
Year 2
00
Purchase + 60 ep
Operating Cost Ke Purchase +
Operating Cost-
3 Trade-in
31
ar
Bu
00 ld C
,76
y
,0 2
Ne
O
0
23 ar
w
Ye
Ca
2
uy
r
B
START 00
42,00 30
0 ep
Buy
New Ke 14,000
Car 1 1
Buy New Car
CD6.14. Topless City is a small chain of car dealerships that sells vintage convertibles
throughout the Southern United States. It is owned and managed by Brandon and
Kyle Winslow. Each month Brandon and Kyle attend two car auctions, at which
they purchase convertibles: one in Atlanta, the other in Miami. The cars are then
shipped to one of three locations: Jackson, Mississippi, Birmingham, Alabama, or
Orlando, Florida. There, the cars are refurbished, repainted, safety inspected, and
sold at the Topless City dealership in that city.
In August, Brandon found 20 cars at the Atlanta auction, and Kyle found 50
cars at the Miami auction which met the needs of the company. Only 15 cars can
be worked on at each city during the month, however. Another auction is coming
up in September; thus, only 45 cars are to be purchased in August.
Topless City wishes to minimize its costs of transporting the cars to the re-
furbishing locations. The cost to transport cars between cities is as follows.
Jackson Birmingham Orlando
Atlanta $200 $100 $175
Miami $250 $200 $125
To
Montgomery Gainesville
FROM
Tuscaloosa $50 $100
Columbus $50 $ 75
To
Jackson Birmingham Orlando
FROM
Montgomery $130 $ 70 $110
Gainesville $150 $135 $ 45
Jacksonville $180 $130 $ 60
b. After painting and refurbishing the vehicles and deducting other expenses
(sales personnel, utilities, etc.), the average gross profit is $x per car. Based
Case CD6.1: The Sandy Company CD-363
on the August auction figures, what breakeven value of x would justify imple-
menting the new plan of buying and selling all 70 cars, rather than maintaining
the current policy of purchasing 45 cars and doing all the work at Topless City
locations?
c. Solve for the shortest path (in terms of cost) from Atlanta to the Topless City
locations; solve for the shortest path from Miami to the Topless City locations.
d. Use the results of part (c) to convert the transshipment problem to a trans-
portation problem. Solve and show that the solutions are equivalent to those
found in part (a).
Parker
Falls Upper
Lufferton
120
45 16 2 Buffalo
15
12
14 1 Valley
36
0 120
15
15
80
60
150
12 1 Los
30
0 Bungalos
15
30 10 13
9 3
81
11 4 12 18
105
12 5
12
8
0
48
210
24
120
6 7
5
45
18
30
45 30
15
1 2 3 4
0
15
135
0
12
60
150
90
18
Groveton
High Point
Grand River
CD-364 Additional Problems and Cases
tober. By that time snow could make certain roads impass- Grand River– Junction 13– Junction 2–
able. In particular, the roads between Grand River and Junction 4 Los Bungalos Junction 15
Junction 4, and between Junction 13 and Los Bungalos are 4. Open Closed Open
very susceptible to closure. In addition, a new 70-mile con- 5. Closed Open Closed
struction road between Junction 2 and Junction 15 may be 6. Closed Open Open
open. 7. Closed Closed Closed
Prepare a report that includes the following. 8. Closed Closed Open
1. The minimum cost distribution and transportation plan 3. An analysis of the situation in which Sandy knows in ad-
to the excavation sites under current conditions vance that both the Grand River–Junction 4 road and the
2. Given that the bulldozers have been allocated as in (1), Junction 13–Los Bungalos road will be closed on the re-
a minimum cost return transportation plan under each turn trip (i.e., suppose the roads automatically close on
of the eight possible sets of conditions: October 1). Recommend a minimum cost distribution
Grand River– Junction 13– Junction 2– and transportation plan for both the case in which the
Junction 4 Los Bungalos Junction 15 Junction 2–Junction 15 road is open and the case in
which it is closed (cases 7 and 8).
1. Open Open Closed (Current)
2. Open Open Open (Hint: Since the bulldozers must be returned to their original
3. Open Closed Closed sites, round-trip mileages must now be considered.)
What is the probability that the D’Onofrio twins will have to commit more than
three months (90 days) to this project?
CD7.3. Keith Littlefield is a racecar driver on the NASCAR circuit. He has promised to
participate in the Pocono 300, to be held 15 weeks from now. In order to be