An Australian gold mine in Kalgoorlie (on the west coast of Australia) is used to supply gold
Question:
a. In scenario 1, we define the BOM to mimic the fact that only 1.1 kilos of raw gold are required to produce 1 kilo of refined gold that can be used to satisfy customer demand. After reviewing the model setup, run the scenario and review the results.
i. Which refinery is selected?
ii. What is the average distance traveled from mine to refinery? Refinery to customer?
b. Let’s create a second scenario but alter the BOM. Now the raw gold has a lesser quality, and it requires 2 kilos of raw gold to produce 1 kilo of refined gold.
i. Does this change which refinery location is optimal?
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Related Book For
Supply Chain Network Design Applying Optimization and Analytics to the Global Supply Chain
ISBN: 978-0133017373
1st edition
Authors: Michael Watson, Sara Lewis, Peter Cacioppi, Jay Jayaraman
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