SUPPLEMENT TO CHAPTER EIGHT THE TRANSPORTATION MODEL LEARNING OBJECTIVES After completing this supplement you should be able to: 1. Describe the nature of a transportation problem. 2. Solve transportation problems manually and interpret the results. SUPPLEMENT OUTLINE Introduction Obtaining an Initial Solution The Intuitive Lowest-Cost Approach Testing for Optimality Evaluating Empty Cells: The Stepping-Stone Method Evaluating Empty Cells: The MODI Method Obtaining an Improved Solution
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Demand Varies by Market Segment Random fluctuations usually are caused by factors beyond management control. However analysis will sometimes reveal that a predictable demand cycle for one segment is concealed within a broader‚ seemingly random pattern. This fact illustrates the importance of breaking down demands on a “segment-by-segment” basis. For instance‚ a repair and maintenance shop that services industrial electrical equipment may already know a certain proportion of its work consists of
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HOPE QUARRY The Quarry Harehope Quarry has a rich history as a working limestone quarry but since it closed wildlife has returned and the rocks are now enjoyed by a new group of people. The Harehope Quarry Project has worked to restore areas of the quarry giving it a new function and providing facilities for visitors. History of the Quarry Limestone has been quarried at Harehope for more than 900 years. Quarrying on a small-scale has taken place here since the 12th century. However
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Capacity Planning & Aggregate Production Planning Capacity Planning • Long term strategic decision • determines overall level of resources • affects product lead times‚ customer responsiveness & operating costs Capacity Planning Three Basic Strategies for Timing Capacity • Capacity Lead Strategy – capacity is expanded in anticipation of demand – aggressive and used to lure away customers from competitors already constrained Capacity Planning Three Basic Strategies for Timing Capacity • Capacity
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Capital Expenditure vs Working Capital Capital expenditures are money spent by a company to acquire long-term assets. It is neither for short-term gain nor can be easily translated into cash. These investments are inevitable to ensure the continuing business operations and also for future expansion of the company. Types of Capital Expenditures Typically‚ capital expenditure refers to the expenses that a company incurred to purchase tangible fixed assets and intangible assets. Additionally
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Capital Expenditure Valuation Methods The payback period is the time it takes for a project or investments cash outflows to be recovered by cash inflows generated from the same project or investment. It is a very simple and commonly used capital budgeting technique. The formula used to compute the payback period is initial investment divided by cash inflow per period. You generally want to choose the investment that provides the shortest payback period‚ because you will get you cash back and it
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Essay On Supply and Demand Model (Standard and Aggregate) Essay On Supply and Demand Model (Standard and Aggregate) Course Title Macroeconomics (BUS209) Submitted To Dr. Shuddhasattwa Rafiq Course Instructor Submitted By [pic] Institute of Business Administration Jahangirnagar University Institute of Business Administration Jahangirnagar University Savar‚ Dhaka-1342 Subject: Submission of the Essay
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Executive Summary SWIFT GREASE PVT. LTD.‚ is grease manufacturing organization. It is established with a vision to provide good quality grease to all its customers and to ensure that all industries that use cheap quality grease‚ to reduce cost and compromise with life of the machinery‚ will also use good quality grease and need not compromise with the life of machinery at same prices. The factory of SWIFT GREASE Pvt. Ltd. will be situated at Jeetpur‚ Bara‚ Nepal and all its official operation will
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This article covers the first increase in housing prices in Australia in 2011‚ raising hopes that Australian housing prices may recover in 2012. Housing prices have also dropped‚ but recently‚ the average cost for a house has also risen. The article states that this is mainly because of low interest rates and shortage of supply. Low interest rates (charges that borrowers pay to lenders for using the borrowed money)‚ would cause a shift in demand (the capability and willingness to consume a commodity
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Solution: Computation of: Revenue Simple returns = (service fee‚ $50) x no. of simple returns demand Complex returns = (service fee‚ $200) x no. of complex returns demand Cost of permanent employees Payment for accountant = (regular rate‚ $600 per week) x no. of permanent accountant Payment for computer system = (per computer rate‚ $175 per week) x no. of accountants who access to the computerized system Total permanent costs = payment to accountant
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