Question 3 Consider the following network (4 customers and one depot, demand on
ID: 338010 • Letter: Q
Question
Question 3
Consider the following network (4 customers and one depot, demand on nodes and costs on arcs are shown) which we started in the class. The number of periods is 4, there is no holding cost at the sites and the products are not perishable. However the customers may have a limited space as shown in the figure below.
The aim is to find the schedule over the 4 periods that yields the least total cost. We assume that the vehicle capacity is 5000 units. The company is currently adopting a routing strategy where inventory (storage) kept at customer sites is not taken advantage of, and each customer is visited only once in each period.
You are asked to evaluate the current strategy and provide possible improvements by answering the following questions.
Show a possible schedule that the company could be adopting and evaluate its corresponding total cost over the four periods.
Find the best ‘optimal’ schedule that considers the inventory at the customer sites and record the total cost.
Write down the total cost saving over the four periods and the % improvement when compared to the company’s current schedule. Suggest ways on how to allocate the saving obtained to other activities that could add further value to your supply chain and hence make the company more competitive.
For a strategic view point, also solve the problem when there is no restriction on the storage at the customer sites (i.e., each customer has enough space) and multiple visits to a customer are also allowed. Discuss your results and its impact on your overall strategy.
3000] 140 [E000] 2000 [2000] 100 storago DIcta noe Depot [4000]Explanation / Answer
Question 3
Consider the following network (4 customers and one depot, demand on nodes and costs on arcs are shown) which we started in the class. The number of periods is 4, there is no holding cost at the sites and the products are not perishable. However the customers may have a limited space as shown in the figure below.
The aim is to find the schedule over the 4 periods that yields the least total cost. We assume that the vehicle capacity is 5000 units. The company is currently adopting a routing strategy where inventory (storage) kept at customer sites is not taken advantage of, and each customer is visited only once in each period.
You are asked to evaluate the current strategy and provide possible improvements by answering the following questions.
Show a possible schedule that the company could be adopting and evaluate its corresponding total cost over the four periods.
Find the best ‘optimal’ schedule that considers the inventory at the customer sites and record the total cost.
Write down the total cost saving over the four periods and the % improvement when compared to the company’s current schedule. Suggest ways on how to allocate the saving obtained to other activities that could add further value to your supply chain and hence make the company more competitive.
For a strategic view point, also solve the problem when there is no restriction on the storage at the customer sites (i.e., each customer has enough space) and multiple visits to a customer are also allowed. Discuss your results and its impact on your overall strategy.
3000] 140 [E000] 2000 [2000] 100 storago DIcta noe Depot [4000]Related Questions
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