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Read the case Supply Chain Management at Dellmar provided. Construct a python optimization model of the problem of minimizing the total transportation and inventory costs
Read the case Supply Chain Management at Dellmar provided. Construct a python optimization model of the problem of minimizing the total transportation and inventory costs over the months of April and May. Answer the following questions: Questions In February, the total cost of transportation and inventory cost was $1.4 million, and the estimated cost for March is roughly the same amount. Using the model you have developed, what is the average monthly cost in April and May if the logistics operation at Dellmar is optimized? What should be Dellmar's production and shipping schedule? How much inventory should Dellmar keep at each distribution center? 1. 2. What is the effect on the total transportation and inventory cost if Dellmar decides to increase its production capacity by 10%? In order to decrease delays in filling customer orders, Ron is considering increasing the minimum inventory at each distribution center from 0 to 500 or possibly even 1,000 Cushion-Air-Pro units per month. Is it possible to institute such a policy given the current capacity of 50,000 units per month? Is it possible to institute this policy if plant capacity were to increase by 10%? what would be the effect of such a policy change on total transportation and inventory costs? 3. Submission Guidelines You need to submit the following: An electronic copy of your (a) python models and (b) a short typed report. The file names should be your last name. Your electronic submission is due at 10:00 a.m. on November 26th The short typed report should have the answers to the above questions and should also include a clear printout of your python code as well as any PuLP output you used to answer the questions Read the case Supply Chain Management at Dellmar provided. Construct a python optimization model of the problem of minimizing the total transportation and inventory costs over the months of April and May. Answer the following questions: Questions In February, the total cost of transportation and inventory cost was $1.4 million, and the estimated cost for March is roughly the same amount. Using the model you have developed, what is the average monthly cost in April and May if the logistics operation at Dellmar is optimized? What should be Dellmar's production and shipping schedule? How much inventory should Dellmar keep at each distribution center? 1. 2. What is the effect on the total transportation and inventory cost if Dellmar decides to increase its production capacity by 10%? In order to decrease delays in filling customer orders, Ron is considering increasing the minimum inventory at each distribution center from 0 to 500 or possibly even 1,000 Cushion-Air-Pro units per month. Is it possible to institute such a policy given the current capacity of 50,000 units per month? Is it possible to institute this policy if plant capacity were to increase by 10%? what would be the effect of such a policy change on total transportation and inventory costs? 3. Submission Guidelines You need to submit the following: An electronic copy of your (a) python models and (b) a short typed report. The file names should be your last name. Your electronic submission is due at 10:00 a.m. on November 26th The short typed report should have the answers to the above questions and should also include a clear printout of your python code as well as any PuLP output you used to answer the questions
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