A Mini Project on the Transco Case Study

A Mini Project on the Transco Case Study
“Transco” is asmallcompanythatproducesasingleproductintwoplantsandservescustomersin fivedifferentregions.Thecompanyhasbeenusingamake-to-orderpolicyofproducingtheproductonlyinthequantitiesneededtofilltheordersthathavecomeinfromthevarious regions.However,becauseoftheproblemscausedbythesporadicproductionschedule, managementhasdecidedtosmoothouttheproductionrateandshiptheproducttooneormorestoragewarehouses,whichthenwilluseinventorytofilltheincomingregionalorders.
Management can use three warehouse locations currently underconsideration.Foreachlocation,thereisafixedmonthlycostassociated withleasingandoperatingthewarehousethere.Furthermore,eachpotentialwarehouselocationhasamaximumcapacityformonthlyshipmentsrestrictedprimarilybythenumberoftruckingdocksatthesite.Theproductcosts$400toproduceatplant1and$300toproduceatplant2.Theshippingcostfromeachplanttoeachpotentialwarehouselocationisshowninthefirsttablebelow.Thefixedleasingandoperatingcost(ifopen),theshippingcosts,andthecapacity(maximummonthlyshipments)ofeachpotentialwarehouselocationareshowninthesecondtablebelow.Themonthlydemandineachofthecustomerregionsisexpectedtobe200, 225,100,150,and175units,respectively.Management wants to determinehowtheproductshouldbedistributedfrom the plantstothe warehouse(s), thentothe customers at a minimum cost.
ShippingCost(perunit) Capacity
WH #1 WH #2 WH #3 (units/month)
Plant1 $25 $50 $75 500
Plant2 $50 $75 $25 400
ShippingCostsandCapacityofthePlants
FixedCost ShippingCost(perunit) Capacity
(permonth) Region1 Region2 Region3 Region4 Region5 (units/mo.)
WH#1 $50,000 $30 $70 $75 $55 $40 700
WH#2 $30,000 $55 $30 $45 $45 $70 500
WH#3 $70,000 $70 $30 $50 $60 $55 1000
FixedCost,ShippingCosts,andCapacityoftheWarehouses
Phase One (Due on Sunday 17 July, 2016):

1. Analyze the provided information in the above case and use your own words to provide a summary of the case including any assumption or observations you might have.

Check your essay before you submit. See exactly what your professor sees.

See your AI and plagiarism results before your instructor does.Get the exact same report your professor uses. Trusted by 50,000+ students worldwide.

Get Plagiarism Report Humanize My Essay

2. Based on your understanding of the Transportation Model in (section 3.5), Formulate this case as a spreadsheet model and solve it using SOLVER module on Excel. Comment on the obtained results using your own words.

Phase Two: (Due on July 28, 2016)

1. Conduct a complete what-if (sensitivity) analysis on the above case. You are expected to apply all the techniques to be learnt in chapter 5 in this section.

2. Provide a summary of your findings along with your supported recommendations to the decision makers of Transco.