*** Problem Set Key — Do Not Post or Distribute ***
Chapter 8: Logistics
Introduction to Operations & Supply Chain Management (Bozarth & Handfield, 3rd Ed.)
DIRECTIONS 1. Put your name and the four-digit number provided by your instructor in the
space below,and hit enter. This will customize the assignment for you.
2. Print out the entire workbook and put your answers in the space provided.
Name: *** KEY ***
4-digit number: 5000
50
Problem 1 What would it cost Markham to make direct, single order shipments to
all of its customers each week? What would the utilization levels
for the trucks look like? Put your answer in the space below.
Problem 2 Now suppose a Chicago-based warehousing firm has agreed to run a
break-bulk operation for $22 per hundred-weight and $90 per local delivery.
How many trucks would be required? What would the total trucking,
warehousing, and local delivery costs be? Put your answers in the space below.
Number of truckloads needed = (Weight of all shipments) / Truck maximum
Chapter 11:Logistics
*** KEY ***
Whole Foods is a specialized grocery store that caters to customers
wanting organically-grown foods, free-range meats, and products with low
environmental impact. Whole Foods is trying to determine
where to locate a new grocery store in the town of Chapel Hill.
The grocery store is expected to serve five neighborhoods,
shown below. The (X,Y) map coordinates & number of homes
are shown below:
Neighborhood X coord. Y coord. Homes
Glenview Place 6 2 90
Problem 3 Calculate the weighted center of gravity for the new grocery store,
based on the information above. What other factors might Whole Foods
consider before making a final decision?
*** Coordinates ***
Neighborhood X coord. Y coord. Homes X*homes Y*homes
Glenview Place 6 2 90 540 180
Townley Circle 6.5 5 60 390 300
Other factors to consider are zoning laws, property prices, and even
the demographics of the neighborhoods — is there a market for
the specialized products and services?