Consider a simplified version of the distribution problem of Vestel. There are only two products: televisions...

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Consider a simplified version of the distribution problem of Vestel. There are only two products: televisions (1 vol./unit) and refrigerators (3 vol./unit). There are three customers A, B, C located in Ankara, Adana, and Erzurum respectively. The demands from these customers are given below: Television Refrigerator Manisa The locations of the customers are given in the following network. Distances between the cities are given on the ares in distance units. 3 7 Ankara 3 A (Ankara) B (Adana) C (Erzurum) 1 4 2 1 2 Adana Erzurum There are two size trucks available: a large size truck that has a capacity of 18 vol. and costs $10 per unit distance and a small size truck that has a capacity of 10 vol. and costs $6 per unit distance. The return distance is not considered in determining total cost. These trucks are operated by a 3PL logistics company and available at all the cities. There is no limitation for the number of trucks to be used. Only the volumes of products are important to load the trucks. 1. Find a distribution plan that will yield a bw transportation cost for Vestel What is the average utilization of the trucks for your plan? 2. Assume that the trucks are returning back empty from the destinations due to the imbalance of the traffic of goods to be transported from the East to the West and from the West to the East. What is the average utilization of the trucks for the owners and operators of these trucks? 3. Another 3PL company offers a fixed price of $3.5 per television and $11 per refrigerator regardless of the destination. Would you accept this offer? Now consider the same problem for Bosch. Bosch is also delivering to their dealers in Ankara, Adana, and Erzurum. On the same day, their demands are given in the following table: Bosch Television Refrigerator A (Ankara) B (Adana) | C (Erzurum) 2 4 2 3- What happens if you coordinate the distribution of Vestel and Bosch? What will be the total saving? + How would you distribute the saving between Vestel and Bosch? Consider a simplified version of the distribution problem of Vestel. There are only two products: televisions (1 vol./unit) and refrigerators (3 vol./unit). There are three customers A, B, C located in Ankara, Adana, and Erzurum respectively. The demands from these customers are given below: Television Refrigerator Manisa The locations of the customers are given in the following network. Distances between the cities are given on the ares in distance units. 3 7 Ankara 3 A (Ankara) B (Adana) C (Erzurum) 1 4 2 1 2 Adana Erzurum There are two size trucks available: a large size truck that has a capacity of 18 vol. and costs $10 per unit distance and a small size truck that has a capacity of 10 vol. and costs $6 per unit distance. The return distance is not considered in determining total cost. These trucks are operated by a 3PL logistics company and available at all the cities. There is no limitation for the number of trucks to be used. Only the volumes of products are important to load the trucks. 1. Find a distribution plan that will yield a bw transportation cost for Vestel What is the average utilization of the trucks for your plan? 2. Assume that the trucks are returning back empty from the destinations due to the imbalance of the traffic of goods to be transported from the East to the West and from the West to the East. What is the average utilization of the trucks for the owners and operators of these trucks? 3. Another 3PL company offers a fixed price of $3.5 per television and $11 per refrigerator regardless of the destination. Would you accept this offer? Now consider the same problem for Bosch. Bosch is also delivering to their dealers in Ankara, Adana, and Erzurum. On the same day, their demands are given in the following table: Bosch Television Refrigerator A (Ankara) B (Adana) | C (Erzurum) 2 4 2 3- What happens if you coordinate the distribution of Vestel and Bosch? What will be the total saving? + How would you distribute the saving between Vestel and Bosch?

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