Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 According to a distribution network optimization conducted 5 years ago, all the demand of AL, GA, KY, SC, and TN is shipped

image

Question 1 According to a distribution network optimization conducted 5 years ago, all the demand of AL, GA, KY, SC, and TN is shipped from the warehouse located in Atlanta, GA. The warehouse in Charlotte, NC currently serves NC and VA. Finally, the warehouse in Jacksonville, FL only serves FL. Based on the current customer allocation, what is the actual transportation cost (inbound + outbound costs)? Question 2 X The company decides to update the customers allocation running a new network optimization model to minimize transportation cost. What is the optimal transportation cost (inbound + outbound costs)? Question 3 CMS also wants to revisit the number of warehouses open. For this purpose, the company includes a fixed cost associated with running each warehouse on a monthly basis in the mathematical model. The monthly fixed costs are listed below: Atlanta, GA: $2,000,000 Charlotte, NC: $2,000,000 Jacksonville, $2,000,000 What is the optimal total cost (fixed + transportation costs)? How many warehouses does the company need to remain open? Question 4 What is the percentage of demand within 350 miles in order to satisfy exactly the customer demand?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Determine the demand and transportation cost for each state Lets assume we have the following demand in units and transportation cost per unit distance in for each state these values would be given in ... blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Statistical Investigations

Authors: Beth L.Chance, George W.Cobb, Allan J.Rossman Nathan Tintle, Todd Swanson Soma Roy

1st Edition

1118172140, 978-1118172148

More Books

Students also viewed these General Management questions