Optimizing Supply Chain Design for Locky Locke Inc. Assignment

Assignment Task

You have finally been promoted to Senior Manager for the nuts and bolts category at Locky Locke Inc., a manufacturer with a large demand for bolts at its three (3) factories. You have surveyed the market and found four (4) suppliers for a certain steady selling SKU. Your factories' weekly demand for bolts are:

• Factory 1: 9,500 
• Factory 2: 6,500 
• Factory 3: 17,000 

Each of the four suppliers can provide the ZA27R46, but they differ in unit price, weekly capacity, and distance to Locky Locke Inc. three factories. The unit prices and the weekly capacity for each of the four suppliers are shown below:

• Supplier 1: U.S. Ainbolt - Unit cost: 2.50 $/case Capacity 9,500 cases/week
• Supplier 2: Der Bolt, Thun - Unit cost: 3.20 $/case Capacity 10,000 cases/week
• Supplier 3: Li Tningbolt - Unit cost: 1.90 $/case Capacity 7,000 cases/week
• Supplier 4: M. Bolton - Unit cost: 2.80 $/case Capacity 9,000 cases/week

You are trying to plan the weekly flow of bolts from these suppliers to your factories. Based on the current contract with your transportation carrier, the unit transportation cost for a case of bolts is $0.05 per mile from any of the suppliers to any of the factories. The distances between the four suppliers and the three factories are given in the table below.

• What is your total weekly cost?
• Round to the nearest integer. Answer without the dollar symbol unanswered?
• What is the left hand side of the supply constraint for Supplier 1?
• What is the left hand side of the demand constraint for Factory 1? 

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