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Question 1 According to a distribution network optimization conducted 5 years ago, all the demand of AL, GA, KY, SC, and TN is shipped
Question 1 According to a distribution network optimization conducted 5 years ago, all the demand of AL, GA, KY, SC, and TN is shipped from the warehouse located in Atlanta, GA. The warehouse in Charlotte, NC currently serves NC and VA. Finally, the warehouse in Jacksonville, FL only serves FL. Based on the current customer allocation, what is the actual transportation cost (inbound + outbound costs)? Question 2 X The company decides to update the customers allocation running a new network optimization model to minimize transportation cost. What is the optimal transportation cost (inbound + outbound costs)? Question 3 CMS also wants to revisit the number of warehouses open. For this purpose, the company includes a fixed cost associated with running each warehouse on a monthly basis in the mathematical model. The monthly fixed costs are listed below: Atlanta, GA: $2,000,000 Charlotte, NC: $2,000,000 Jacksonville, $2,000,000 What is the optimal total cost (fixed + transportation costs)? How many warehouses does the company need to remain open? Question 4 What is the percentage of demand within 350 miles in order to satisfy exactly the customer demand?
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Determine the demand and transportation cost for each state Lets assume we have the following demand in units and transportation cost per unit distance in for each state these values would be given in ...Get Instant Access to Expert-Tailored Solutions
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