Supply Chain Network Design at Fine Mediterranean Desserts

John, a former marketing manager team with his friend Matt, a former pastry chef in Ritz Carlton Toronto decided to open aMediterraneandessertproducing lineto be sold across Ontario province. Their company was called Fine Mediterranean Desserts.

The company began with a single production facility in Toronto, ON, which served the entire customer base made up of distributor's warehouse locations across Ontario.

TheMediterraneanDesserts line immediately become very popular and business partners now finds themselves with more demand than their existing plant can produce. As the CEO, John decides they will add one or two new plants in Ontario to alleviate this problem and offer better service to their customers.

After some initial research, business partners knew that building a plant in any of their potential locations would cost just about the same and decided that their decision for locating these additional facility or facilities should then be focused on locations which would enable to the best service to their existing customer base.

The supply chain team atFine Mediterranean Dessertsdecided to use a network design application to help them find the optimal answer to their question.

The team generated a list of 12 potential locations which is enough demand and there are favorable conditions for building new facility.

Analyze different scenarios given below and answer questions usingFLP Spreadsheet Solver, prepare your detailed report with screen shots and your comments and upload on Moodle.

Supply Chain Network Design withFLP Spreadsheet Solver

In Ontario company has customers in 12 cities to deliver product. These cities and demands are given in the table below.

Table 1: Cities and Demands

City Name	Demand (in tones)
Toronto	75
Ottawa	70
Oakville	65
Hamilton	60
Niagara Falls	45
Kitchener	40
Brampton	35
Guelph	30
Kingston	25
Barrie	20
Windsor	20
Sarnia	15

Using FLP Spreadsheet Solver solve different scenarios given below. Capture solution screens and paste to your report; explain the results from total cost, maximum service distance, average distance to customers and other important perspectives.

1. Without capacity limitation and no facility setup cost locate 2 and 3 facility (P=2, P=3) and write outputs and explain this output in your report under the related scenario. In this scenario Toronto must be facility.

1. Without capacity limitation but with $1500 facility setup cost locate 2 and 3 facilities respectively (P=2, P=3) and write outputs and explain this output in your report under the related scenario

1. With 200 tones fixed capacity and $1500 facility setup cost for each plantlocate 2 and 3 facilities respectively (P=2, P=3) and write outputs and explain this output in your report under the related scenario.

1. Add different capacities (given in Table 2) to your model and $1500 facility setup cost for every location than locate 2 and 3 facilities (P=2, P=3) and create and explain outputs in your report under the related scenario.

Table 2: Potential Facility Capacities

City Name	Capacity(in tones)
Toronto	200
Ottawa	250
Oakville	200
Hamilton	250
Niagara Falls	150
Kitchener	200
Brampton	300
Guelph	250
Kingston	150
Barrie	200
Windsor	200
Sarnia	150

1. Company logistics team created a short list for potential facility locations instead of using all 12 cities as a candidate location. The short list is Toronto, Ottawa, Hamilton, Kitchener and Guelph.Capacities for these potential facilities are also same with capacities given on Table 2.Facility setup cost same for all cities. Using this short list locate 2,3 and 4 facility respectively (P=2, P=3, P=4) and write outputs and explain this output in your report under the related scenario.

1. Company logistics team decided not to open facility in Toronto and Ottawa because of the high facility cost, all other 10 cities are potential facility. Without capacity limitation and same setup cost for all locations, locate 3 and 4 facility (P=3, P=4) and explain results in your report under the related scenario.