1. The Burger Doodle restaurant chain uses a distribution center to prepare the food ingredients it provides its individual restaurants. The company is attempting to determine the location for a new dis¬tribution center that will service five restaurants. The grid-map co¬ordinates of the five restaurants and the annual number of 40-foot trailer trucks transported to each restaurant are as follows:
|
|
Coordinates
|
Annual truck shipments
|
|
Restaurant
|
x
|
y
|
|
1
|
100
|
300
|
35
|
|
2
|
210
|
180
|
24
|
|
3
|
250
|
400
|
15
|
|
4
|
300
|
150
|
19
|
|
5
|
400
|
200
|
38
|
a. Determine the least-cost location using the center-of-gravity method.
b. Plot the five restaurants and the proposed new distribution cen¬ter on a grid map.
2. The Fizer Drug Company manufactures over-the-counter and prescrip¬tion drugs. Last year the company's cost of goods sold was $470 million. It carried average raw material inventory of $17.5 million, average work-in-process of $9.3 million, and average finished goods inventory of $6.4 million. The company operates 365 days per year. Compute the company's inventory turns and days of supply for last year.
3. The Ashton Furniture Company manufactures coffee tables and chest of drawers. Last year the company's cost of goods sold was $3,700,000, and it carried inventory of oak, pine, stains, joiners, and brass fixtures, work-in-process of furniture frames, drawers and wood panels, and finished chests and coffee tables. Its average inventory levels for a 52-week business year were as follows.