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Andrew Hanna Chapter 5: The overall network cost is a combination of fixed costs of setting up home offices and the total trip costs. There are two constraint sets in the model. The first constraint set requires that a specified number of trips be completed to each state j and the second constraint set prevents trips from a home office i unless it is open.
Also, note that there is no capacity restriction at each of the home offices. While a feasible solution can be achieved by locating a single home office for all trips to all states, it is easy to see that this might not save on trip costs, since trip rates vary between home offices and states.
We need to identify Chapter 5 chopra meindl ways to plan trips from different home offices to different states so that the trip costs are at a minimum.
Thus, we need an optimization model to handle this. However, it will be used in answering b. I22, cij Transportation cost from office i to state j K7: H22, xij number of consultants from office i to state j.
N22 Sheet SC consulting in workbook exercise5.
As trips to Kansas cost the same from Tulsa or Denver there are many other solutions possible by distributing the trips to Kansas between these two offices. Or in terms of the optimization model, Ki, for all i, should have a value of We can revise constraint 5.
The new model will answer b. However in this specific case, it is clear that only the Denver office violates this new condition.
As trips to Kansas can be offloaded from Denver to Tulsa without any incremental cost, that is a good solution and still optimal. Hence we just allocate 5 of the Denver-Kansas trips to Tulsa. This reduces the number of consultants at Denver to 10 while maintaining 5 consultants at Tulsa. We note that in the optimal solution of beach state is uniquely served by an office except for Kansas where the load is divided between Denver and Tulsa.
The cost to serve Kansas is the same from either office. Hence we can meet the new constraint by making Tulsa fully responsible for Kansas.
This brings the trips out of Tulsa to and those out of Denver to Again the number of consultants remains at 5 and 10 in Tulsa and Denver, respectively.Supply Chain Management 5 edition chopra completed chapters Chapters include exam questions and Answers.
Supply Chain Management 5 edition chopra completed chapters Supply Chain Management 5 edition chopra chapter 07 Supply Chain Management 5 edition chopra chapter 07 test bank. Preview Pages (2 out of 27) EXAM.
$ 6. Chopra/Meindl 5/e CHAPTER 5 Case Questions (see corresponding Chapter 5 case Excel spreadsheet) 1.
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