You are creating a model for a manufacturing company with four major plants and ten warehouses. They want to reduce costs by determining the optimal number and location of the plants and warehouses. During the initial set of meetings, one of the team members is very concerned about modeling the “samples” that the firm sends out. As part of the marketing of the product, the firm sends out quite a bit of sample product. This product is pulled from the plants or warehouses and shipped to customers via small-parcel. It accounts for about 10% of the demand records (and about 0.5% of the demand volume) and about 3% of the logistics costs. Should you include this part of the business in the model?
Answer to relevant QuestionsA producer of dog food is trying to decide whether they should change the number and locations of their warehouses to better meet projected demand over the next three years. They do a study and determine that their ...What if the western part of Logistica decided it needed a capital city as well? Assume that City 15 was the easternmost city in this region. What is the best location for the capital of the western half of Logistica? Why? 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 ...Using the diagram of the retailer from this chapter, draw the diagram of a retailer in which the urban stores are served only from regional warehouses, the rural stores are served from either the central warehouse or ...You are building a model for a global chemical company that has three plants, each making a unique set of products. They have a plant in Asia, one in North America, and one in Europe. They make hundreds of different ...
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