2. Using the scoring model to resolve the following equipment selection problem. A choice is to be made between two alternative information technology (IT) systems. The following data apply:
System 1 System 2 Weights
Investment Cost $5,050,000 $5,060,000 3
Operating Costs (annual) mce_markernbsp; 400,000 mce_markernbsp; 500,000 3
Downtime 3 2 7
Ease of repair 2 3 5
Ease of learning 4 5 2
Flexibility 4 2 4
Characteristics are scaled so that large numbers are less desirable than small numbers. Large weights are more important than small ones, and the scale runs from 1 to 7.
4. The American Company has two factories, A and B, located in Wilmington, Delaware, and San Francisco, California. Each has a production capacity of 550 units per week. American's markets are centered in Los Angeles, Chicago, and New York City. The demands of these markets are for 150, 350, and 400 units, respectively, in the coming week. A matrix of shipping distances is prepared. Determine the shipping schedule that minimizes total shipping distance. Estimates of shipping distances (in miles) are shown in the following matrix, along with supply and demand.
Los Angeles Chicago New York City Supply
Wilmington 3,000 1,000 300 550
San Francisco 400 2,000 3,000 550
Demand 150 350 400
Using the QMpom module called Facilities Planning Models (Transportation) and the module called Aggregate Scheduling Models (Transportation) will facilitate solving the six (6) problems that are numbered 4 through 9.