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Suppose you are running 4 order fulfillment centers, and the capacity level maintained at each center is 10. You have 4 demand regions to serve.
Suppose you are running 4 order fulfillment centers, and the capacity level maintained at each center is 10. You have 4 demand regions to serve. Each region is faced with a stochastic demand, which follows a Normal Distribution with mean 10 and standard deviation 3. Suppose fulfilling one unit of demand at each region can get $1, while shipping from each fulfillment center to each demand region is normalized to be $0. However, you have to configure the link between the fulfillment center and the demand regions. Only if the link between the order fulfillment center i and demand region j is configured, you can ship the resource from center i to region j. The cost of configuring one link is $0.5. For example, two possible order fulfillment networks are given below: How to configure the fulfillment network so that the total (expected) profit (i.e., total expected revenue network configuration cost) is maximized? Plot the network and explain your solution. Hint: You need to formulate a stochastic order fulfillment model with link configuration and random demand to address the
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