Supply Chain Linear Program Problem
1st discription sets up original problem.
2nd discription changes problem with direct sourcing from factories
Thank you!
Network Design Case Study You work for a large US oil company that recently acquired a small European regional gasoline distributor. You have been tasked with proposing the best design for your company's supply chain for distributing 18,000,000 barrels of oil in the European market from your refinery in Dhahran, Saudi Arabia. Your company also has terminals near ports in Suez and Alexandria in Egypt that will be used as intermediate transshipment points between the refinery and the final destination ports for markets at Marseille in France, Naples in Italy, and Rotterdam in the Netherlands. Transportation costs between locations in the network, capacity and processing cost at each terminal, and demand in each market are given in the tables below. Note that due to trade agreements that not all markets can be served by all terminals. Terminal Processing Capacity (barrels) and Processing Cost (\$/barrel) You want to test other network configurations to see if you can reduce expected costs and research if direct shipping from Dhahran would be feasible. You find that setting up a terminal at the same location as the refinery would only add another $1 in processing cost per barrel and the transportation costs between Dhahran and the ports at the 3 markets are given below. Your research also uncovers that due to trade agreements that you can only ship 3,000,000 between Dhahran and Marseille without getting a special waiver from the French government that is unlikely for a US-based company. You expect however that demand in Marseille will increase by 2,000,000 barrels if you add direct shipping as a capability. 6. Update the objective function and constraints in the problem when direct shipping is integrated into your network You decide to make Marseilles an intermediate transshipment point. Based on the information provided, what is the minimum total cost for this new network design? How many barrels should you ship between Dhahran and Alexandria in this new network design? Question 3 How much would the transportation cost per barrel from Marseille to Naples need to increase before your optimal solution changes? Network Design Case Study You work for a large US oil company that recently acquired a small European regional gasoline distributor. You have been tasked with proposing the best design for your company's supply chain for distributing 18,000,000 barrels of oil in the European market from your refinery in Dhahran, Saudi Arabia. Your company also has terminals near ports in Suez and Alexandria in Egypt that will be used as intermediate transshipment points between the refinery and the final destination ports for markets at Marseille in France, Naples in Italy, and Rotterdam in the Netherlands. Transportation costs between locations in the network, capacity and processing cost at each terminal, and demand in each market are given in the tables below. Note that due to trade agreements that not all markets can be served by all terminals. Terminal Processing Capacity (barrels) and Processing Cost (\$/barrel) You want to test other network configurations to see if you can reduce expected costs and research if direct shipping from Dhahran would be feasible. You find that setting up a terminal at the same location as the refinery would only add another $1 in processing cost per barrel and the transportation costs between Dhahran and the ports at the 3 markets are given below. Your research also uncovers that due to trade agreements that you can only ship 3,000,000 between Dhahran and Marseille without getting a special waiver from the French government that is unlikely for a US-based company. You expect however that demand in Marseille will increase by 2,000,000 barrels if you add direct shipping as a capability. 6. Update the objective function and constraints in the problem when direct shipping is integrated into your network You decide to make Marseilles an intermediate transshipment point. Based on the information provided, what is the minimum total cost for this new network design? How many barrels should you ship between Dhahran and Alexandria in this new network design? Question 3 How much would the transportation cost per barrel from Marseille to Naples need to increase before your optimal solution changes
