SUBJECT:OPERATIONS ANALYTICS REASSESSMENT

I NEED THE ANSWER VERY QUICKLY

Question 2.

Think of the logistics challenges Amazon UK is facing: they are sourcing from thousands of

bookstores and through a few distributions centres they are delivering in millions of customers.

Think now of the alternative setup that they just started implementing a few months ago where they

have added another layer in this transportations network in-between the end customers and the

distribution centres: that of collection points in local shops.

(a) Give a generic formulation of a logistics cost minimisation LP problem for Amazon UK before

the layer with the collection points was added,

(b) give a generic formulation of a logistics

cost minimisation LP problem for Amazon UK with the collection points,

(c) expand the latter so as to allow for transhipments in between the distributions centres and provide both a

graphical network and an LP formulation,

(d) Why did they decide to go for the introduction of collection points and under what conditions is this a sensible move?