Distribution Network Planning Assignment Spring $2024$

Current Business Situation

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Current Business Situation

Bearkat Incorporated was founded in Someplace, TX as an online retailer. While the company officially incorporated in $2006,$ the owners have been dabbling in online retail since $2021.$

Currently, the company has one distribution center $($DC$)$ located near the interstate just outside of Someplace, TX$.$ However, the owners of the DC have indicated that they want to close the facility and sell the land.

Assignment Objective

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Assignment Objective

As the supply chain planner, you need to identify two $(2)$ new locations for distribution centers within the service area.

The objective is to minimize total distribution costs for the entire network.

Once the two locations are selected, you need to calculate the cost to supply all demand for the entire distribution network in Excel.

All distribution costs should be for a round$-$trip

For instance, Austin to El Paso and El Paso back to Austin

Drivers must be paid for both directions

Customer Demand and Service Area

Demand for next $12$ months

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Customer Demand and Service Area

Demand for next $12$ months

$\backslash$table$[[$City$,$Demand$],[1.$ Amarillo,$5700],[2.$ Austin,$1200],[3.$ Brownsville,$7800],[4.$ Lubbock,$3400],[5.$ Dallas,$9600],[6.$ Fort Worth,$700],[7.$ Waco,$800],[8.$ Houston,$2100],[9.$ Galveston,$1400],[10.$ Corpus Christi,$7100],[11.$ S$.$ Padre Island,$8700],[12.$ Laredo,$3400],[13.$ San Antonio,$4000],[14.$ El Paso,$8500],[15.$ Odessa,$4200],[16.$ Midland,$800]]$

Transportation Costs

Transportation Costs

Fixed cost of $$100$ per truck $($round trip$)$

Variable cost of $$0\mathrm{.}60$ per mile

To determine driving distances, everyone must use Google Maps

DC in Texarkana to customer location in Amarillo $=498$ miles

Must use shortest mileage, not shortest duration $($see example$)$

Drivers must be paid for round trip

DC in Texarkana to customer location in Amarillo

$498$ miles $*2$ trips $=996$ miles

Grading

Assignment is worth $50$ points

Deductions made for the following:

Failing to calculate round trip costs $(5$ points$).$

Forgetting to round to a full truckload $(5$ points$).$ For example, if demand is $500$ units and $200$ units fit on each truck, the student could have $2\mathrm{.}5$ truck. However, the proper answer is $3$ trucks, which would be multiplied by the fixed cost of $$100.$

Improperly calculating mileage estimates between proposed distribution center and customer city $(5$ points$).$

Not assigning enough customer demand points to a distribution center $(5$ points$).$

Assigning a distribution center to a location that does not have a population of $10,000(5$ points$).$

Assigning a distribution center to a location that is not within $5$ miles of an interstate highway $(5$ points$).$

Bonus points for the three submissions with the lowest total cost

$10$ points for first place

$5$ points for second place

$3$ points for third place

Transportation Costs

Fixed cost of $$100$ per truck $($round trip$)$

Variable cost of $$0\mathrm{.}60$ per mile

To determine driving distances, everyone must use Google Maps

DC in Texarkana to customer location in Amarillo $=498$ miles

Must use shortest mileage, not shortest duration $($see example$)$

Drivers must be paid for round trip

DC in Texarkana to customer location in Amarillo

$498$ miles $*2$ trips $=996$ miles

Grading

Assignment is worth $50$ points

Deductions made for the following:

Failing to calculate round trip costs $(5$ points$).$

Forgetting to round to a full truckload $(5$ points$).$ For example, if demand is $500$ units and $200$ units fit on each truck, the student could have $2\mathrm{.}5$ truck. However, the proper answer is $3$ trucks, which would be multiplied by the fixed cost of $$100.$

Improperly calculating mileage estimates between proposed distribution center and customer city $(5$ points$).$

Not assigning enough customer demand points to a distribution center $(5$ points$).$

Assigning a distribution center to a location that does not have a population of $10,000(5$ points$).$

Assigning a distribution center to a location that is not within $5$ miles of an interstate highway $(5$ points$).$

Bonus points for the three submissions with the lowest total cost

$10$ points for first place

$5$ points for second place

$3$ points for third place