If the cost of an ocean container from China to Seattle is $3,500 and you can fit 250 units into the container, but on average you put in 200, what is the cost per unit that should be used within a network design model?
Answer to relevant QuestionsGo to the spreadsheet Raw Transportation Rates.xls on the book web site. This file shows 300 raw shipments from the warehouse in Atlanta to customers located in Chicago. It shows a mix of TL, LTL, and parcel shipments. ...A large CPG manufacturer initiated a network study to optimize its manufacturing network to determine where to add a line to make a new product. The company had an existing plant in the U.S. it could expand and was ...In the Illinois Quality Parts case study, we first ran the baseline model with a rate of $2/mile for all lanes. Figure 8.14 shows the output of this scenario, showing total cost and total miles traveled out of each ...What would have been the cost if they moved all production to China, but still chose our previous optimal three-warehouse solution (dual-sourcing product)? 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 ...
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