Question: Task 3 (7.5 points): Expand the supply chain LP model to include the overall network: Draw the supply chain network of the product (suppliers, warehouses,

Task 3 (7.5 points): Expand the supply chain LP

Task 3 (7.5 points): Expand the supply chain LP model to include the overall network: Draw the supply chain network of the product (suppliers, warehouses, factories, distribution centers, markets) Suppliers Plants Warehouses Markets You can modify network based on your project case (not necessarily your network will include all the mentioned elements). Formulate a mathematical model to decide on quantity shipped from each supplier to factories/plants, from factories to warehouses or distribution centers, and from distribution centers to markets/customers). Data needed for LP model formulation (try to get estimates from the supply chain manager): Number of each element on the network (suppliers, plants, warehouses, markets) Annual demand from each customer (use total forecasted in the aggregate plan) o Capacity of each supplier, each plant, and each warehouse. o Cost of shipping one unit from supplier to plant, plant to warehouse, and warehouse to customer. Solve the model using CPLEX or Excel Solver. What is the total cost? Make sure (in the optimal solution) that market demand is met and the capacity of suppliers, warehouses, factories, and distribution centers is not exceeded. Discussion and Further Work: A- What changes need to be made to the model to accommodate multiple products? B- How to include reverse logistics in the model? List 3 examples of reverse flow in your project supply chain. What other cost elements that need to be added to the supply chain total cost model in order to consider reverse logistics. C- What factors will make the team go for simulation? What is the value of developing a supply chain simulation model using Discrete Event Simulation (DES) packages such as ARENA in order? List 3 reasons only. How can the model help the team in improving/optimizing the supply chain

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