# Excel problems management science 430

Alabama Atlantic is a lumber company that has three sources of wood and five markets to be supplied. The annual availability of wood at sources 1, 2, and 3 is 15, 20, and 15 million board feet, respectively. The amount that can be sold annually at markets 1, 2, 3, 4, and 5 is 11, 12, 9, 10, and 8 million board feet, respectively.

In the past, the company has shipped the wood by train. However, because shipping costs have been increasing, the alternative of using ships to make some of the deliveries is being investigated. This alternative would require the company to invest in some ships. Except for these investment costs, the shipping costs in thousands of dollars per million board feet by rail and by water (when feasible) is given by the above table for each route.

Data attached below.

Questions and solution is attached below as well.

The capital investment (in thousands of dollars) in ships required for each million board feet to be transported annually by ship along each route is given next.

Considering the expected useful life of the ships and the time value of money, the equivalent uniform annual cost of these investments is one-tenth the amount given in the table. The objective is to determine the overall shipping plan that minimizes the total equivalent uniform annual cost (including shipping costs).

You are the head of the management science team that has been assigned the task of determining this shipping plan for each of the three options listed next.

Option 1: Continue shipping exclusively by rail.

Option 2: Switch to shipping exclusively by water (except where only rail is feasible).

Option 3: Ship by either rail or water, depending on which is less expensive for the particular route.

Present your results for each option. Compare.

Finally, consider the fact that these results are based on current shipping and investment costs, so that the decision on the option to adopt now should take into account management’s projection of how these costs are likely to change in the future. For each option, describe a scenario of future cost changes that would justify adopting that option now.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.