Question: In the supply network lecture, we discussed identifying the optimal material flow in a supply chain to match supply and demand. More specifically, we discussed

In the supply network lecture, we discussed identifying the optimal material flow in a supply chain to match supply and demand. More specifically, we discussed two examples: 1) BuyPC.com case and 2) a simple supply chains with 2 plants, 2 distribution centers (DCs) and 3 customers. If you were hired by a company and were tasked to solve the BuyPC.com case using optimization tools, how would you do it? To answer this question, lets consider the LP formulation for the simpler 2Plant/2 DC supply chain problem setting: what if the company says we have 15 possible DCs and we would like to utilize the best 2 only to satisfy the demand! Now as a systems engineer or engineering manager, you are asked to formulate an optimization model to solve this automatically (meaning select the best 2 DCs out of 15 DCs through optimization). How would you modify the LP model: in other words a) what additional decision would you define? b) How would you modify the objective function and c) How would you modify the constraints?In the supply network lecture, we discussed identifying the optimal material flow in a supply chain to match supply and demand. More specifically, we discussed two examples: 1) BuyPC.com case and 2) a simple supply chains with 2 plants, 2 distribution centers (DCs) and 3 customers. If you were hired by a company and were tasked to solve the BuyPC.com case using optimization tools, how would you do it? To answer this question, lets consider the LP formulation for the simpler 2Plant/2 DC supply chain problem setting: what if the company says we have 15 possible DCs and we would like to utilize the best 2 only to satisfy the demand! Now as a systems engineer or engineering manager, you are asked to formulate an optimization model to solve this automatically (meaning select the best 2 DCs out of 15 DCs through optimization). How would you modify the LP model: in other words a) what additional decision would you define? b) How would you modify the objective function and c) How would you modify the constraints?

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