Question 4
Subject:ManagementPrice: Bought3
Question 4. The distribution system for the Herman Company consists of four plants, three warehouses and four customers. Plant capacities and shipping costs per unit (in S) from each plant to each warehouse are as follows: Warehouse Plant 1 (5 2 (6 Capacity 500 550 10 550 500 Customer demand and shipping costs per unit (in S) from each warehouse to each customer are as follows: Customer 2 (9) 3 (10 4 (11 Warehouse 10 1 (5) 2 (6) 10 3 (7) 450 500 450 550 Demand (a) Draw the network diagram representing the problem. (c) Suppose items can be shipped from Warehouse 4 to customer 4(11)at a cost of $8 each, would the answer to (b) change? (d) Comment on the following statement: Since demand forecasts are likely to be wrong developing sophisticated mathematical models for solving supply chain management distribution problems is a futile exercise.
