Based on the charges levied by common carrier tracks for the transportation of the each motor from the three different harbours to the four assembling plants, a decision is made on how many motors from which harbour are taken to which assembling plan while incurring the least cost. From the table 1.3 given in the question showing the costs of transportation, the following is deduced from which a decision of how many motors are to be sent from each harbor to each plant is made: The cheapest way to transport a motor to Leipzig is when it comes from Antwerp harbour (£ 61) therefore maximum number of motors t Leipzig should come from here.
(400 motors)The cheapest way to transport a motor to Nancy is when it comes from Antwerp (£ 40) followed by Le Havre (£ 90) therefore 300 motors and 600 motors are taken to Nancy from Antwerp and Le Havre harbours respectively. The cheapest way t transport a motor to Liege is when it comes from Amsterdam (£ 41) so all the 200 required motors at Liege are taken from here. The cheapest way to transport a motor to Tilburg is when it comes from Le Havre (£ 42) followed by Amsterdam (£ 59.
50) therefore 200 motors and 300 motors respectively transported to Tilburg. This information is then arranged in a spreadsheet model that solves it to give the cheapest cost of transportation and distribution of motors from the harbours to assembly plants is shown. (See 358311 Spread Solutions for Question 1.xls). As indicated above in the deductions made from the table of costs of transportation, it is a representation of the cheapest possible combination that can be set from the conditions given.
It is observable that transportation of these motors from Antwerp harbor to the four plants is the cheapest and therefore the recommendation would be to increase the number of motors at Antwerp from where they are to be collected to the plants to minimize cost. This will meet management’s requirement for a distribution plan while at the same time being the most economic arrangement involving distribution of the motors. Report for Question 1Given that the Auto Power Company wants to distribute these motors to the plants indicated so that relevant companies in need of this service (or cannot stand power interruptions), it must do so in a way that minimizes any possible risks while maximizing returns.
From the information given, the only overt thing of these two that can be determined and adequately controlled to realize the management’s goal of minimized cost and efficient and timely distribution of the motors to their destinations is the decision of how many motors from which habours are to be taken to which plant.
This is realized in the spreadsheet model that is designed (and herein attached) to handle this problem. Minimization of costs and maximization of benefits is the one goal to be sought after in the hope of realizing comparative advantage in the market. Question three analysis and resultsThis time series that relates to the sales of this company is analyzed and discussed below. Identification, estimation and forecasting based on autoregressive order one is obtained from this time series following the general formula: