Andrew-Carter, Inc.

1. Andrew-Carter, Inc. • Issue: Due to the economic depression, A-C considers to close one of its 3 plants. The objective is to minimize the Cost. • Setup: 1. Make a tabular 2. P1, P2, P3 are the Plants 1, 2, 3 3. r = regular time; o = overtime 4. W1, W2, W3, W4, W5 are the Warehouses 1, 2, 3, 4, 5 5. # in cells is the variable cost per unit ( Variable cost in Table 10.40 + Distribution cost from Table 10.41) 6. Perform the comparative analysis by using QM for Windows or Excel.

3. Using QM for Windows Assume Plant 1 is Closed: Start QM for Windows Select Module Menu Select Transportation Select File Menu Select New Define Data set for Transportation

4. Using QM for Windows • Fill in data grid with problem data from the Tabular without P1 Solve the problem by clicking the solve button

5. Using QM for WindowsTotal Variable Cost without P1 = $188,360 The solution can be viewed in the data grid

6. Using QM for Windows Assume Plant 2 is Closed: Select File Menu Select New Define Data set for Transportation

7. Using QM for Windows • Fill in data grid with problem data from the Tabular without P2 Solve the problem by clicking the solve button

8. Using QM for WindowsTotal Variable Cost without P2 = $183,430 The solution can be viewed in the data grid

9. Using QM for Windows Assume Plant 3 is Closed: Select File Menu Select New Define Data set for Transportation

10. Using QM for Windows • Fill in data grid with problem data from the Tabular without P3 Solve the problem by clicking the solve button

11. Using QM for WindowsTotal Variable Cost without P3 = $189,930 The solution can be viewed in the data grid

12. Use Excel Solver to solve the question • Open Excel • Select QM and Transportation from the menu bar

13. Excel Solver • Fill in the spreadsheet initialization as follows:

14. Excel SolverWithout P1 • Fill in the tabular after enter the spreadsheet initialization and click OK • Select tool and solver from menu bar

15. Excel SolverWithout P1 • Set Solver Parameters as follows: • Then click solve • View the solution

16. Excel Solver without P2 • Repeat the Steps in Slides 12 and 13 • Fill in the tabular after enter the spreadsheet initialization and click OK • Select tool and solver from menu bar

17. Excel Solverwithout P2 • Set Solver Parameters as follows: • Then click solve • View the solution

18. Excel Solver without P3 • Repeat the Steps in Slides 12 and 13 • Fill in the tabular after enter the spreadsheet initialization and click OK • Select tool and solver from menu bar

19. Excel Solverwithout P3 • Set Solver Parameters as follows: • Then click solve • View the solution

20. Conclusion • From the result of QM for windows or Excel Solver, We conclude that:

21. Discussion Question 1 • Evaluate the various configurations of operating and closed plants that will meet weekly demand. Determine which configuration minimizes total costs. • To close the Plant 2 minimize total cost because by closing the Plant 2 will minimize the total variable cost.

22. Discussion Question 2 • Discuss the implications of closing a Plant. • To minimize the cost is to determine the lowest total variable cost for closing the plant.