Logistic

Topics: Supply chain management, Logistics, Transport Pages: 5 (332 words) Published: November 23, 2014
MSOR/OPMT/MKMR 475: Supply Chain Logistics (Fall 2013)
(Homework #6)
Due: November 20th, 2014
This is a group assignment. Each group need to submit one (hard copy) of the report in class on November 20th.

Problem 1 (20 Points):
Two plants are to serve three market points through one or two warehouses. Volume flowing either to or from each point, and the associated transportation rates and location are given as follows: Point

No
Point
i

X-coordinate

Y-coordinate
Volume
Vi (cwt.)
Transportation
Rate ($/cwt./mi)
1
P1
3
8
5000
0.04
2
P2
8
2
7000
0.04
3
M1
2
5
3500
0.095
4
M2
6
4
3000
0.095
5
M3
8
8
5500
0.095

Scale for X-Y Coordinates: 1 = 10 miles

(a) Use Center of gravity method to find the optimum single warehouse location (develop your own EXCEL model to iteratively find the Center of Gravity).

The location will be (5.901,5.519) with the lowest cost of 53510.86.

(b) Use LOGWARE to find the optimum location and compare its solution to one obtained in part (a).

The LOGWARE input is:

The LOGWARE outcome is blew and the result is the same with part (a)

(c) Use LOGWARE to find the location and the cost for two warehouses to serve these five locations.

The result is below and the total cost is 31,628.95

PROBLEM 2 (20 Points):
Recall the example of the “Location on the Network” models (with and without single sourcing restriction) discussed in class. Suppose the company had identified another potential warehouse (WAREHOUSE-4) with a throughput capacity of 3000 units they can lease. Table below gives the associated fixed cost, handling cost and transportation cost for product flowing through this warehouse.

Shipping cost to W4 from..
Shipping cost from W$ to …
Fixed Cost
Handling Cost
Plant 1
Plant 2
Plant 3
RO-1
RO-2
RO-3
RO-4
RO-5
$45000
$2
$5
$4
$3
$4
$6
$3
$6
$7

Resolve the problem (both with and without single source restriction). Does an option of this additional warehouse location changes your decision? 1.with single source restriction:
As we can see from the SOLVER solution, the result is same, which means we do not use warehouse 4.

2.without single source restriction:
As we can see from the SOLVER solution, the result is same, which means we do not use warehouse 4.
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