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Supply Chain Modelling and Design Assignment PDF

   

Added on  2021-04-17

9 Pages1278 Words71 Views
Running head: SUPPLY CHAIN MODELLING AND DESIGNSupply Chain Modelling and DesignName of Student:Name of University:Author’s Note:

SUPPLY CHAIN MODELLING AND DESIGN1Table of Contents1. Executive Summary.....................................................................................................................22. Introduction................................................................................................................................22.1 Decision variable...................................................................................................................22.2 Network Model......................................................................................................................22.3 Objective Function.................................................................................................................32.4 Define Constraints.................................................................................................................3x1 = y1 and x1 = y2.....................................................................................................................32.5 Mathematical Model..............................................................................................................33. Discussion................................................................................................................................43.1 Findings.................................................................................................................................43.2 Results and interpretations.....................................................................................................54. Recommendations........................................................................................................................55. Bibliography................................................................................................................................7

SUPPLY CHAIN MODELLING AND DESIGN21. Executive SummaryThe report aims to implement a simplex linear programming which will be conducive indetermining the minimum cost shipping strategy for a company which produces a potato productat three plants delivered directly delivered to two customers, two warehouses or between theplants. The research has depicted the network model and found the objective variable as 4460which is the minimum minimum-cost shipping strategy using Lp solver in MS Excel. It has beenalso recommended that the movement of the materials has been minimum among the individualwarehouses. In addition to this, the movement of materials from plant 3 to warehouse 1 has beenalso interpreted as significantly low. Henceforth, the potato company needs to rely on themovement of the materials from plant to warehouse rather than plant to customer or plant toplant. It is also recommended that the company may also minimize the cost by avoiding thetransfer of material from one customer to another customer. 2. IntroductionIn the given case a company produces a potato product at three plants which may bedelivered directly delivered to two customers, two warehouses or between the plants. Thistransfer may be also considered among each other in an interchangeable manner. The costincurred in producing the potato is seen to be same at each plant and the company is concernedwith the keeping the shipping costs as low as possible in meeting the demands of the customer.The solution has considered that “the cost (in thousands of dollars) of shipping a ton of theproduct between each pair of locations” as it has been stated in the table. It has been furtherconsidered that the road regulation does not allow more than 200 tons of the product betweenany two nodes. The overall implementation of the simplex linear programming has beenconducive in determining the minimum cost shipping strategy.2.1 Decision variableThe decision variables are considered with the changes in the demand from the threeplants, two warehouses and two customers.

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