Question
I need the solution of this problem, its really important, please help me with this. A logistics operator needs to find the best location for
I need the solution of this problem, its really important, please help me with this.
A logistics operator needs to find the best location for a distribution center that is equidistant from the delivery points for a distribution network in Colombia. However, you have to keep in mind that there are some cities that have a higher volume of orders and for this reason, it is necessary to prefer attention to those points with more profitable clients than other points of delivery. The Director of Logistics Operations of the company must suggest a possible location and present the results to the steering committee. You must convince the members of said committee that this proposal will improve the profitability of the network and in turn give more preference to more of the company (type A customers). The Director of Operations asks the transport area for data about the latest deliveries and the area in charge provides you with the following:
Delivery Point | Logistics cost / Volumetric weight | Number of boxes delivered | Type of box | Product family |
Apartad | 140 | 34503 | 2 | Body Care |
Armenia | 90 | 83990 | 2 | Beauty Care |
Barbosa | 100 | 864 | 3 | Beauty Care |
Barrancabermeja | 50 | 83945 | 2 | Oral Care |
Barranquilla | 200 | 506851 | 2 | Body Care |
Baranoa | 100 | 120640 | 2 | Body Care |
Bello | 190 | 45306 | 3 | Oral Care |
Bogot | 50 | 913078 | 1 | Beauty Care |
Bucaramanga | 190 | 685690 | 1 | Oral Care |
Buga | 70 | 21811 | 2 | Oral Care |
Bugalagrande | 160 | 1156 | 2 | Body Care |
Caicedonia | 50 | 3937 | 1 | Oral Care |
Cali | 40 | 1204565 | 2 | Oral Care |
Cartagena | 180 | 248157 | 3 | Body Care |
Cartago | 20 | 27116 | 3 | Oral Care |
Chinchin | 30 | 10091 | 3 | Oral Care |
Cota | 90 | 98657 | 1 | Beauty Care |
Ccuta | 70 | 91585 | 1 | Beauty Care |
Dosquebradas | 90 | 56230 | 2 | Beauty Care |
Duitama | 180 | 156481 | 2 | Oral Care |
El Cerrito | 170 | 5226 | 1 | Body Care |
El Zarzal | 20 | 1217 | 2 | Beauty Care |
Envigado | 130 | 2778 | 1 | Body Care |
Espinal | 70 | 7264 | 2 | Body Care |
Facatativ | 20 | 21431 | 1 | Oral Care |
Florencia | 60 | 10693 | 3 | Body Care |
Florida_Valle | 90 | 14731 | 3 | Beauty Care |
Floridablanca | 60 | 33914 | 1 | Beauty Care |
Funza | 40 | 2067062 | 3 | Body Care |
Fusagasug | 130 | 40311 | 2 | Body Care |
Girardot | 100 | 1432 | 1 | Body Care |
Girn | 70 | 11725 | 1 | Body Care |
Ibagu | 60 | 271458 | 1 | Beauty Care |
Itag | 160 | 314208 | 2 | Beauty Care |
Jamund | 20 | 9337 | 3 | Oral Care |
La Tebaida | 140 | 855 | 3 | Body Care |
Manizales | 70 | 48655 | 2 | Body Care |
Medelln | 160 | 869206 | 2 | Body Care |
Melgar | 200 | 2336 | 2 | Beauty Care |
Montera | 170 | 308772 | 2 | Oral Care |
Mosquera | 80 | 133831 | 2 | Body Care |
Neiva | 30 | 195042 | 2 | Beauty Care |
Nemocn | 70 | 2941 | 3 | Beauty Care |
Palmira | 110 | 40298 | 3 | Oral Care |
Pasto | 100 | 209632 | 3 | Beauty Care |
Perira | 200 | 261648 | 3 | Beauty Care |
Pi de Cuesta | 200 | 28549 | 2 | Beauty Care |
Popayn | 70 | 1026 | 3 | Oral Care |
Rio Negro | 110 | 847 | 3 | Beauty Care |
Sabana de Torres | 150 | 1020 | 3 | Beauty Care |
Sabaneta | 170 | 24793 | 3 | Body Care |
San Alberto | 180 | 800 | 2 | Body Care |
San Andrs | 100 | 17924 | 2 | Beauty Care |
San Gil | 170 | 983 | 1 | Beauty Care |
San Pablo Bolvar | 150 | 1238 | 1 | Body Care |
Santa Marta | 200 | 67278 | 1 | Body Care |
Santa Rosa de Cabal | 90 | 5702 | 1 | Oral Care |
Santander de Quilichao | 190 | 5936 | 3 | Oral Care |
Sincelejo | 100 | 50880 | 1 | Beauty Care |
Socorro | 170 | 255 | 1 | Oral Care |
Sogamoso | 190 | 20984 | 3 | Beauty Care |
Soledad | 20 | 156520 | 2 | Beauty Care |
Tocaima | 150 | 536 | 2 | Body Care |
Tulu | 130 | 70163 | 3 | Oral Care |
Tunja | 40 | 30167 | 1 | Oral Care |
Valledupar | 140 | 90521 | 2 | Beauty Care |
Villavicencio | 70 | 272066 | 2 | Body Care |
Yumbo | 40 | 32834 | 2 | Oral Care |
Additionally, there is other information from the area of operations regarding requirements of company logistics:
Type of boxes | Dimensions (cm) | Maximun weight (kg) |
Type 1 | 33,0x22,0x31,0 | 6,5 |
Type 2 | 36,0x24,0x27,0 | 7,2 |
Type 3 | 37,5x25,0x30,5 | 7,8 |
The volumetric weight, in order to apply the rates and calculate the weight-volume relationship of the boxes, is calculates as follows:
Volumetric weight = Volume(m3) x 250 (m3/kg)
The marketing area provides the following information regarding the sale price of each product family (estimated for each milliliter of product):
Product Family | Selling price per milliliter of product |
Beauty Care | $2,50 |
Oral Care | $0,59 |
Body Care | $0,74 |
The projects area affirms that there is the feasibility of choosing between these possible locations: Ibagu, Envigado, Funza, Floridablanca, since building a distribution center has another type of macroeconomic considerations, obtaining qualified labor, access to vehicles load, among other criteria.
Company operations to respond: 1. If the criteria is minimum cost, what would be the most economical location? 2. If the criterion is to maximize the Profit vs. Cost, what would this location be?
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