JGT Task 2: The Transportation Model

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JGT Task 2- Kyle Dickerson The Transportation model finds the least cost effective ways to ship supplies to different destinations. “Transportation modeling [is] an iterative procedure for solving problems that involve minimizing the cost of shipping products from a series of sources to a series of destinations" (Heizer & Render, 2010, p. 718). In this case there are three warehouses to which Shuzworld will be moving goods to. The factories are named Shanghai Shuzworld H and Shuzworld F. Further into the case we find out that the Shanghai plant would like to increase the currently producing 1300 shoes to 2800 shoes. The optimal cost of 13,400 is achieved by shifting which warehouse the factories ship to through the distribution method.…show more content…
Then Shuzworld H is shipping 500 units to warehouse 1 in addition to 1800 units to warehouse 3. Shuzworld F will ship 2200 units to warehouse 1. The excess 1500 is shipped to a Dummy destination as well as the Shanghi plant shipping 200 units to the dummy plant. When there was an increase in supply over demand the Dummy destination was created to ship the extra units. There is no cost attached to shipping to the dummy destination at this time. The Transportation model found the lowest cost solution using linear programming. This made it the best model to use for this situation. It analyzed different shipping method and found the lowest cost for each. B. Reliability The company relies heavily on their machines so reliability is very important to Shuzworld. The computer driven shoe machine allows more cost savings throughout the company’s manufacturing process. Each machine performs a different function and there are three in all. Each machine needs a high amount of reliability in case of any problems in production. The Reliability tool was used to determine the reliability of the machines in a sequence. In POM reliability tool gives a reliability of .7568. This means the process has a reliability of…show more content…
This is a system that backs up an existing process with another process. With this system production time will not be lost because of equipment failure. This will initiate a backup machine in its place to run production. The general network too can be used to calculate the resulting reliability of redundant processes. Machine 1: (0.84) + {(0.84) x (1 - 0.84)} = (0.84) + {(0.84) x (0.16)} = (0.84) + (0.1344) = 0.9744. When this is used in the reliability equation for machine 1 it .8739 or 87.4% reliability. Providing redundancy for the machine 1 increases the reliability of the process from 75.7% to 87.7%. Machine 1 has the lowest initial reliability, which makes it the best choice in comparison to system 2 and

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