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Rtty

In: People

Submitted By ettyobz
Words 331
Pages 2
Memorandum
To: Cynthia Crowninsheild
From:
Date: 2/22/2014
Re: Production Analysis SHUZWORLD

A. Distribution Pattern

Shuzworld has three plants that ship units to three central warehouses. The company would like to know the lowest transportation cost monthly along with the best shipping plan to achieve the lowest cost. To analyze the cost we are using the transportation modeling tool. The optimal cost is $13,400 which would be the lowest monthly transportation costs which is shown below.

Transportation modeling is the best tool to use as it finds the lowest optimal costs when shipping products from several plants to several different destinations. Our model shows three different plants of Shanghai, Shuzworld H, and Shuzworld F with three different warehouses. The individual unit costs to ship from each plant to each warehouse is entered in order to calculate the optimal cost. Also shown below is a shipping list whish details the exact amounts that should be shipped from each plant to each warehouse in order to achieve the optimal costs shown. This would be the best distribution pattern to use in order to achieve the optimal costs. The patterns show any demand constraints and also meets availability while minimizing total shipping costs. Looking at the shipping list chart the increased production from 1300 to 2800 units caused the supply to exceed the demand which is shown in the Dummy row ( dummy destination at no cost) that way the cost figures are not affected. The excess will not ship but stay at the Shanghai plant until the demand is needed.

B. Reliability of computer shoe machines

Shuzworld has three computer driven shoe machines that they use to produce the deck shoes. At this moment there is not a back up machine if the machines go down. By testing the reliability of each the computerized machines we can…...

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