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Aydn Co. is a manufacturing company located in zmir. Aydn Co. is responsible to manufacture and deliver the products to the distribution centers located at

Aydn Co. is a manufacturing company located in zmir. Aydn Co. is responsible to manufacture and deliver the products to the distribution centers located at Eskiehir, Mersin, and Samsun.

As the logistics manager of Aydn Co., you have to plan the upcoming 4 days. There are 4 orders to be delivered during this planning period. The orders and related information (release date, due date and destination of each order) are given in the following table.

Order

Release date

Due date

Weight

Destination

1

1

2

20

Eskiehir

2

1

4

25

Mersin

3

1

3

15

Samsun

4

2

4

10

Mersin

The company has two options to deliver the orders, to hire trucks or to use a common carrier. The company can consolidate multiple orders in a hired truck. The weight capacity of a truck is 45 units. There are two routes used for hired trucks. The related information for the routes are given in the below table.

Route

Fixed cost

(per truck per trip)

Transportation time (days)

Eskiehir

Mersin

Samsun

zmir Eskiehir Mersin

500

1

2

-

zmir Eskiehir Samsun

750

1

-

2

The common carrier charges the following amounts and delivers the orders in one day.

Destination

Cost (per order)

Eskiehir

300

Mersin

400

Samsun

450

  1. Write the mathematical model of shipment consolidation and dispatching problem in open form for Aydn Co. Company using the above information. Define the decision variables and discuss the objective function and each type of constraint.
  2. Assume that Aydn Co. had a new agreement with a railroad company (ie. TCDD) and the orders of Mersin DC can be consolidated in a railroad car that has weight capacity of 50 units. TCDD delivers the railroad car to Mersin DC in one day and charges 300 per railroad car. How do you modify your answer in part (a) to handle this new agreement?

Hint: The closed form mathematical model of the shipment consolidation and dispatching problem is given in Q3.

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