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Operations on a Supply Chain Management

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4. A diet is being prepared for the University of Arizona dorms. The objective is to feed the students at the least cost, but the diest must have between 1800 and 3600 calories. No more than 1400 calories can be starch, and no fewer than 400 can be protein. The varied diet is to be made of two foods: A and B. Food A costs $0.75 per pound and contains 600 calories. 400 of which are protein and 200 starch. No more than two pounds of food A can be used per resident. Food B costs $0.15 per pound and contains 900 calories, of which 700 starch, 100 are protein, and 100 are fat.

a. Write the equations representing this information.
b. Solve the problem graphically for the amounts of each food that should be used.

5. Repeat problem 4 with the added constraint that not more than 150 calories shall be fat and that the price of food has escalated to $1.75 per pound for food A and 2.50 round food B.

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Solution Summary

This solution provides answers to questions involving supply chain management.

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Operations management - Supply chain management & the bullwhip effect

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Question 1:

IF: THEN (all else equal, it is likely that):

a) We aim to increase "inventory velocity" We must produce and push work-in-process faster to next operation/ wait and produce only what is pulled by next operation. EXPLAIN WHY

b) We install an expensive machine that requires The intensity of the "bull whip" in the supply chain
very large production batches but it is fast will increase / decease / not be affected. EXPLAIN WHY

c) We consolidate inventories from two (nearby) "Service level" will increase / decrease/ not be affected warehouses into one warehouse (keeping the same EXPLAIN WHY
amount of inventory)

Question 2:

A plant makes four different models of DeskJet printers. Up to now, it has been producing each model only once every week (for example, Model A on Mondays, Model B on Tuesdays and part of Wednesdays, Model C on Wednesdays and Thursdays, and Model D on Fridays). There is a proposal to move from weekly to daily schedule and produce some of each model every day. Total weekly production output would be the same. Changeover times and costs (from one model to another) are insignificant.

Would this change reduce or increase:
a) The level of inventory of printers in the supply chain after the plant? Why?
b) The level of "work in process" inventory in the plant (i.e., number of printers being assembled)? Why?
c) The intensity of the "bull whip" in the entire supply chain? Why?

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