Open the file Warehouse Costs by Throughput.xls located on the book web site. This file contains the total cost to operate different warehouses by throughput. Run a regression analysis and estimate the fixed and variable cost formula. Why might this approach work well for a firm with many warehouses and not very well for a firm with only a few warehouses?
Answer to relevant QuestionsA 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 ...If your baseline model’s costs are 20% lower than the actual costs, under what conditions could this still be a valid baseline? What if we wanted to implement five warehouses in the future, but wanted only four now. What is the cost of the best four, plus adding one more, versus the cost of picking the best four out of the best five? Which solution ...Value Grocers has decided to expand its model to include product lines such as packaged deli meats and cheeses, crackers, potato chips, canned nuts, yogurt, and milk. You can find the detailed storage and logistics ...Open the model found in the file Debugging Example I.zip on the book web site. In this model, the customer wants to minimize the average distance to customers. However, when the model runs, one warehouse serves the majority ...
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