Answer Happy

CASE 3.1 Putting the Link in the Supply Chain Rick Eldridge is the new Vice President for operations at the The Golfer's Link (TGL), a company specializing in the production of quality, discount sets of golf clubs. Rick was hired primarily because of his expertise in supply chain management (SCM). SCM Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

Case 3.1 135 Men's 2.9 4 is the integrated planning and control of all resources in the logistics process from the acquisition of raw materials to the delivery of finished products to the end user. While SCM seeks to optimize all activities in the supply chain including transactions between firms, Rick's first priority is ensuring that all aspects of production and distribution within TGL are operating optimally. TGL produces three different lines of golf clubs for men, women, and junior golfers at manufacturing plants in Daytona Beach, FL; Memphis, TN; and Tempe, AZ. The plant in Tempe produces all three lines of clubs while the one in Daytona only produces Men's and Women's lines, and the plant in Memphis only produces the Women's and Junior's lines. Each line of clubs requires varying amounts of three raw materials that are sometimes in short supply: titanium, aluminum, and a distinctive rock maple wood that TGL uses in all of its drivers. The manufacturing process for each line of clubs at each plant is identical. Thus, the amount of each of these materials required in each set of the different lines of clubs is summarized in the following table: Resources Required per Club Set (in lbs) Women's Junior's Titanium 2.7 2.5 Aluminum 4.5 5 Rock Maple 5.4 5 4.8 The estimated amount of each of these key resources available at each plant during the coming month is given as: Estimated Resource Availability (in lbs) Daytona Memphis Tempe Titanium 4,500 8,500 14,500 Aluminum 6,000 12,000 19,000 Rock Maple 9,500 16,000 18,000 TGL's reputation for quality and affordability ensures that they can sell all the clubs they can make. The Men's, Women's, and Junior's lines generate wholesale revenues of $225, $195, and $165, respectively, regardless of where they are produced. Club sets are shipped from the production plants to distribution centers in Sacramento, CA, Denver, CO, and Pittsburgh, PA. Each month, the different distributions centers order the number of club sets in each of the three lines that they would like to receive. TGL's contract with this distributor requires the company to fill at least 90% (but no more than 100%) of all distributor orders. Rick recently received the following distributor orders for the coming month: Number of Club Sets Ordered Men's Women's Junior's Sacramento 700 900 900 Denver 550 1,000 1,500 Pittsburgh 900 1,200 1,100 The cost of shipping a set of clubs to each distribution point from each production facility is summarized in the following table. Note again that Daytona does not produce Junior's club sets and Memphis does not produce Men's club sets. Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

Shipping Costs Women's Men's Junior's To \ From Daytona Tempe Daytona Memphis Tempe Memphis Tempe Sacramento $51 $10 $49 $33 $9 $31 $8 Denver $28 $43 $27 $22 $42 $21 $40 Pittsburgh $36 $56 $34 $13 $54 $12 $52 Rick has asked you to determine an optimal production and shipping plan for the coming month.

Task 1. Formulate and solve this problem as a Linear Programme in Excel. Solve the integer form and the LP relaxation. Produce the sensitivity report for the LP relaxation. 2. Using the above output, analyse the above case and write a report for Rick Eldridge advising him how he should plan the production and shipment. The report should include: 2 . . Formulation of the Linear Programming problem. Screenshots of the Excel spreadsheet model. Statement of the recommended solution. Discussion of the interpretation of the sensitivity report. Discussion of assumptions made in applying Linear Programming to Rick's problem. Extended analysis that would be useful to Rick followed by more general suggestions of how this project could be extended, including a statement of requirements to carry out the proposed extension. . .