Question: A popular online shoe retailer has been successfully servicing their
A popular online shoe retailer has been successfully servicing their customers across the United States with the most popular brands of shoes from tennis shoes to high heels for the past five years. The retailer sources these shoes from a wholesale shoe distributor and therefore receives all their shoe orders from the closest distributor stocking location. Due to the bulky packaging required to ensure no damage to the shoes in transit, the transportation cost is always volume dependent (or can be tied back to a per-carton cost). The supply chain modeling team has previously modeled a generic volume of shoes flowing through their network to determine optimal warehouse locations. This year, the company has decided to expand their retail footprint by beginning to offer the sale of designer formalwear such as suits and dresses as well. These products arrive in the supply chain on hangers and can’t be folded and shipped in cartons. The modeling team has determined that these products must be modeled as separate products within the network design. Explain why this is a good decision in terms of transportation and warehousing cost differences.
Answer to relevant QuestionsABC Bottling Company’s sales have been expanding rapidly. Their single plant, which ships directly to customers, is now out of capacity. What factors should they consider when they decide whether to expand the existing ...Describe how you would model the associated products in each situation: a. A German chemical company produces five different liquid chemical products (Liquid Products A through E for this example). These liquid products are ...If two large companies merge, why might you want to run a multi-objective optimization to trade off the total cost of company one versus the total cost to company two? That is, why might this be better than running with just ...Open the model found in the file Debugging Example III.zip on the book web site. This model solves, but is returning a cost that is about 100 times higher than what you expect the result to be. Determine what the problem is ...You work for an online retailer, and you shipped to 100,000 unique addresses last year. You are building a network model to determine where to open a new warehouse later in the year. Besides the fact that you don’t want to ...
Post your question