A&C Distributors Is a Company That Represents Many Outdoor Products

question 9

Essay

A&C Distributors is a company that represents many outdoor products companies and schedules deliveries to discount stores,garden centers,and hardware stores.Currently,scheduling needs to be done for two lawn sprinklers,the Water Wave and Spring Shower models.Requirements for shipment to a warehouse for a national chain of garden centers are shown below. $$\begin{array} { c | c | c | c | c | c } \text { Month } & \begin{array} { c } \text { Shipping } \\\text { Capacity }\end{array} & \text { Product } & \begin{array} { c } \text { Minimum } \\\text { Requirement }\end{array} & \begin{array} { c } \text { Unit Cost } \\\text { to Ship }\end{array} & \begin{array} { c } \text { Per Unit } \\\text { Inventory Cost }\end{array} \\\hline \text { March } & 8000 & \text { Water Wave } & 3000 & .30 & .06 \\& & \text { Spring Shower } & 1800 & .25 & .05 \\\hline \text { April } & 7000 & \text { Water Wave } & 4000 & .40 & .09 \\& & \text { Spring Shower } & 4000 & .30 & .06 \\\hline \text { May } & 6000 & \text { Water Wave } & 5000 & .50 & .12 \\& & \text { Spring Shower } & 2000 & .35 & .07\end{array}$$ Let S_ij be the number of units of sprinkler i shipped in month j,where i = 1 or 2,and j = 1,2,or 3.Let W_ij be the number of sprinklers that are at the warehouse at the end of a month,in excess of the minimum requirement.
a
Write the portion of the objective function that minimizes shipping costs.
b.An inventory cost is assessed against this ending inventory. Give the portion of the objective function that represents inventory cost.
c.There will be three constraints that guarantee, for each month, that the total number of sprinklers shipped will not exceed the shipping capacity. Write these three constraints.
d.There are six constraints that work with inventory and the number of units shipped, making sure that enough sprinklers are shipped to meet the minimum requirements. Write these six constraints.

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Definitions:

Internal Reporting

The process of preparing and presenting financial statements and other reports to management within an organization.

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting in the U.S.

Acquisition Method

An accounting technique used in consolidating the financial statements of a group in which one controls one or more others, focusing on fair value of the acquired assets and liabilities.