SunnyWorld has seen a huge increase in demand for its latest release, N-9, a solar powered phone case that can fully charge a mobile in up to 10 minutes. Based on that, they are reviewing their supply chain network. John Baker, the Supply Chain Director, asks a member of his team, Pamela Robinson, to come up with a first analysis.

SunnyWorld has 1 plant and it serves 6 retailer stores through 3 Warehouses. N-9 cases come in boxes of 100. Pamela gathers the data below for her analysis:

Table 1: Monthly demand per retailer store

Retailer Store	Demand (Boxes per month)
Store 1	1770
Store 2	1230
Store 3	1060
Store 4	950
Store 5	750
Store 6	600

Table 2: Warehouse capacity and distance from the plant

Warehouse	Capacity (boxes per month)	Distance from the plant (Km)
W-1	1500	221
W-2	4500	554
W-3	2500	378

Table 3: Warehouse's distance from the retailer stores (Km)

Warehouse/Retailer	Store 1	Store 2	Store 3	Store 4	Store 5	Store 6
W-1	202	130	651	1034	922	858
W-2	780	823	213	891	347	772
W-3	578	670	907	120	841	423

Pamela also finds that the cost per kilometer is 1.1 Euros per box of phone cases from the plant to the warehouses, and 1.8 Euros per box of phone cases from the warehouses to the retailers. When gathering data to check the current flow of boxes among plant, warehouses and retailer stores, Pamela finds that:

• the monthly demands of retailer store 1, store 2 and store 3 are fully fulfilled by Warehouse W-2;
• the monthly demand of retailer store 4 is fully fulfilled by Warehouse W-1;
• the monthly demands of retailer store 5 and retailer store 6 are fully fulfilled by Warehouse W-3;
• the plant produces only what's demanded every month.

Based on this information, what is the current total monthly cost (including inbound and outbound costs)?

Round your answer to the nearest integer.

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Question 2

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Pamela strongly suspects that the current flow of boxes is not optimized. She wants to present to Mr. Baker the minimum monthly total cost (inbound + outbound costs) for the optimized network. What would that cost be?

Round your answer to the nearest integer.

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Question 3

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John informs Pamela that SunnyWorld wants to improve its service level by limiting to 775 km the maximum distance from warehouses to retailers.

What is the minimum monthly total cost for the new optimized network (including inbound, outbound)? If there is no feasible solution, enter 0 as the answer.

Round your answer to the nearest integer.

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Question 4

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The maximum distance policy is no longer being considered. Instead, Mr. Baker informs Pamela that SunnyWorld is considering to build a new warehouse, W-4, but they are unsure of what capacity this new warehouse should have. Consider that all other warehouses' capacities will remain the same as described in the problem statement. Consider also that the W-4 will be built to fulfill only the necessary monthly capacity to minimize the total costs (inbound + outbound costs). The distances from W-4's potential location to the other facilities are presented below.

Table 4: W-4's distances to other facilities (Km)

Warehouse/Facilities	Plant	Store 1	Store 2	Store 3	Store 4	Store 5	Store 6
W-4	402	180	150	227	470	388	390

Consider that the cost per kilometer is 1.1 Euros per box of phone cases from the plant to the W-4, and 1.8 Euros per box of phone cases from the W-4 to the retailers.

Based on this, what is the minimum monthly capacity in units Pamela should advise for W-4? unanswered

What is the minimum monthly total cost for this new optimized network design (including inbound and outbound costs)?

Round answer to the nearest integer.

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Question 5

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After presenting her initial findings to Mr. Baker, he reminds her that the warehouses' fixed costs are missing in the analysis. He provides the data in the table below and asks her to incorporate these into the analysis and run the optimization model again. Mr. Baker asks to still consider W-4 in the analysis, but now with a given capacity of 1100 units per month.

Table 5: Warehouse's fixed cost (Euros)

Warehouse	Fixed cost
W-1	7800
W-2	19500
W-3	13500
W-4	18800

Based on this information, what is the minimum monthly total cost for the new optimized network design (including inbound, outbound and fixed costs)?

Round answer to the nearest integer.