Infolinks2

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Tuesday, 1 May 2012

Yeager National Bank Case Solution


Objective Function: Minimization

(Minimization of number of days)

4 Locations of Lock-box

1.       Phoenix
2.       Salt Lake City
3.       Atlanta
4.       Boston

Assignment model has created a dummy location of lock-box because locations of lock-box were less then customer zone.


5 Customer Zone

1.       Northwest
2.       Southwest
3.       Central
4.       Northwest
5.       Southeast
Assignment model has been used to solve the case.




 Assignment Model




Solution




Assignment List




 
(Amount in $1000s)

This assignment list shows the job assigned to cost
Phoenix is assigned to southwest at $180
Salt Lake City is assigned to northwest at $160
Atlanta is assigned to southeast at $200
Boston is assigned to northeast at $360
Total cost is $900

Profit

Phoenix is assigned to southwest at profit of $27               (180*15 %=27)
Salt Lake City is assigned to northwest at profit of $24     (160*15 %=24)
Atlanta is assigned to southeast at profit of $30                 (200*15 %=30)
Boston is assigned to northeast at profit of $54                 (360*15 %=54)
Total profit is $135                                                           (900*15 %=135)

Managerial Report

Optimal Cost (z) $ 900 (amounts in $1000s)
·         Central = slack, it means Yeager National Bank performing no activity in central customer zone.
·         Southwest ,Yeager National Bank  will locate the lock-box in Phoenix as it is giving minimum days  and minimum cost
·         Northwest, Yeager National Bank will locate the lock-box in Salt Lake City because it is giving minimum days and cheaper cost.
·         Southeast, Yeager National Bank will locate the lock-box in Atlanta because it is giving minimum days and minimum cost.
·         Northeast, Yeager National Bank will locate its lock-box in Boston because it is giving minimum days and minimum cost.

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