- 50 P Dalton Pharmaceuticals Enjoys A Dominant Position In Most Of Canada With Over 800 Discount Retail Outlets These 1 (259.33 KiB) Viewed 63 times
(50 p.) Dalton Pharmaceuticals enjoys a dominant position in most of Canada with over 800 discount retail outlets. These stores are served by twice-weekly deliveries from Dalton's 13 warehouses, which are in turn supplied daily by seven factories.eu It is clear to Marilyn Helms, VP operations, that an additional warehouse is desperately needed to handle growth and backlogs. Three cities, Montreal, Toronto, and Winnipeg, are under final consideration. The table below illustrates the current and proposed factory/warehouse capacities/demands and shipping costs per average carton of supplies. Unit Transportation Costs ($) Charlotte Toronto ON Winnipeg MB Bedeque PE Windsor ON Tignish PE Montreal ace Thunder Bay ON Kingston ON Wellington PE Bonavista NL Gatineau OC Quebec City OC Calgary АВе Yorktone ske Capacity (cartons/ day) Miramichi NBA Warehouse - town PES ܠ 350 22 114 6 ge 82 4- 102 6 8 இ 42 3e 54 4-5 5 22 7 5 250 6 2 3 2 6 6 7 5A 40 54 6e 5- зе 24 9 3502 62 ge 7 9 8 6 7e 40 2 24 12 34 50 6 32 5 250- 5 32 2- 2 6 60 5 52 6 5e 22 8 6 3 5502 20 82 92 7 132 Factory: Saskatoon ska Ottawa ON Regina ske Hamilton 3e ON Monctone NB Fredericton NB- Summerside 4 PEI Demand 250- (cartons/day) e 9 10.- ge 42 30 3e 44 4502 6 82 22 32 84 72 6 64 5e 3e 10 2- 24 be 82 2 8 72 550- 82 50 62 2e 회 22 se 7 20 7e 82 2002 300- 250 175 300- 275 2502 300 250- 1502 150- 50- 100- 2002 150- 1.(45 p.) Find the best pattern of shipments (optimal solution that minimizes the total transportation cost) separately for each of the three alternatives for a location for the new warehouse no. 14:4 (15 p.) a) in Montreal I (15 p.) b) in Toronto (15 p.) c) in Winnipeg 2. (5 p.) Which of these three patterns of shipments is the lowest transportation cost solution? What would be your final recommendation? Fully justify your answer.