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Royal Seafood delivers fresh fin and shellfish to specialty grocery stores in the state of Oregon. The company packs a delivery truck in Corvallis and then drives in one single route to its five customers spread throughout the state. The distances in miles between all locations may be found in the table below. From/To Corvallis (A) Roseburg (B) Bend (C) Baker (D) Lakeview (E) Burns (F) Corvallis (A) – 225 234 233 169 189 Roseburg (B) 225 – 159 244 265 168 Bend (C) 234 159 – 253 246 197 Baker (D) 233 244 253 – 153 287 Lakeview (E) 169 265 246 153 – 171 Burns (F) 189 168 197 287 171 – a. Propose an efficient route by using the NN heuristic with Corvallis as the starting city. What is the total distance traveled? b. Use the NN heuristic to calculate five routes, each starting from one of Royal Seafood’s customer’s location. What is the best route for Royal Seafood?

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On a daily basis, the Vampire Van is dispatched from Maplewood Hospital to pickup blood and platelet donations made at its local donation centers. The distances in miles between all locations may be found in Table 15.3. a. The Vampire Van travels from Maplewood Hospital (A) to (B) to (C) to (D) to (E) and then returns to the hospital (A). What is the total number of miles that the van must travel using this route? b. Using Maplewood Hospital as the beginning location, create a route using the NN heuristic. What is the total number of miles that the van must travel using this route? c. Using Valley Hills (E) as the beginning location, create a route using the NN heuristic. What is the total number of miles that the van must travel using this route?

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Wingman Distributing Company is expanding its supply chain to include a new distribution hub in South Bend. A key decision involves the number of trucks for the facility. The particular model of truck Wingman is considering can be used 5,000 miles a month and will cost $900 a month in capital costs. In addition, each mile a truck is used costs $0.90 for maintenance. A local truck rental firm will rent trucks at a cost of $1.80 per mile. Given the distribution of likely requirements for trucks, management has come up with three alternatives to consider as shown in the table: Monthly requirements (miles) 50,000 100,000 150,000 Probability 0.20 0.50 0.30 Fleet size (trucks) 10 20 30 Which fleet size will yield the lowest expected monthly costs for Wingman?

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Eastmark Electrical Equipment Manufacturers needs to secure its supply of copper for the next year. The price of copper is extremely volatile because of huge month-to-month variation in demand. Eastmark wants to break even with a hedge against future copper prices. Currently, the market price for copper is reasonably low at $3.25 per pound or $325 (CWT). Eastmark has entered into a contract with the supplier for 500,000 pounds of copper per month starting in January at market prices. Eastmark has also entered into a futures contract with a financial institution for 500,000 pounds per month at $3.25 per pound. CWT (hundredweight) is equal to 100 pounds in the United States. a. Calculate the one month financial and the physical results if the market price of copper has risen to $4.50 per pound. b. Calculate the one month financial and the physical results if the market price of copper has fallen to $3.00 per pound.

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