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A pharmaceutical company manages a complex supply chain involving the production and distribution of various drugs, each with different lead times, production costs, and perishability

 

A pharmaceutical company manages a complex supply chain involving the production and distribution of various drugs, each with different lead times, production costs, and perishability considerations. The company aims to minimize transportation costs (in $) and lead times (in days, assuming that each day is estimated to add $2) while ensuring drug availability.


a. How can the pharmaceutical company construct an advanced LP model (using the Vogel Method) that considers lead times, multiple objectives, and complex supply chain dynamics, and how can they interpret the results effectively?


b. How does incorporating delivery time constraints affect the formulation of the objective function?


c. Explain the concept of multi-objective optimization and why it is important for LP models to balance cost and lead time considerations.


Factory1 Factory2 Factory3 Factory4 Lead time Supply

Drug1 8 10 12 14 2 600

Drug2 11 9 13 15 3 750

Drug3 9 12 11 16 2 700

Demand 700 800 900 1000

 

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