SUPPLY CHAIN DESIGN AND ANALYSIS

Chapter 2
The geographical positions and populations of the 10 cities are presented in the following table:

City Latitude Longitude Population

1 16.6 154.8 1655000
2 16.7 156.8 2300000
3 16.8 153.2 601000
4 17 154 1385000
5 17 152 1230000
6 17.2 144.9 665000
7 17.5 155.7 664000
8 17.4 147.1 885000
9 17.5 141.1 1116000
10 17.8 155.1 636000
1. Calculate the latitude and longitude of COG?
2. Calculate the average population-weighted distance from COG to the ten cities in miles?
3. Compare COG and City 5 to choose one of them to be the capital of the country based on: (1)
Average population-weighted distance, (2) % population within 200 miles?

Chapter 3
1. The fashion company considers opening stores to serve customers in 5 markets. The distances
(km) between the markets are presented in the following table:
HCMC Long An Tien Giang Dong Nai Binh Duong
HCMC 0 35 70 35 55
Long An 35 0 30 80 100
Tien Giang 70 30 0 100 130
Dong Nai 35 80 100 0 30
Binh Duong 55 100 130 30 0
The demands of the 5 markets are: HCMC (100.000), Long An (40.000), Tien Giang (30.000),
Dong Nai (50.000) and Binh Duong (40.000). All the demands of the 5 markets must be served.
The company wants to open P stores to serve the markets and minimize the total demand weighted
distance.
1. Establish the mathematical model (objective function and constraints with indexes) to solve the
company problem.
2. If the company wants to open 2 stores, where should they be located? What is the total demand
weighted distance?
3. If the company wants to open 5 stores, where should they be located? What is the total demand
weighted distance? How much did the average distance decrease?
4. What are the best 5 stores if the demand for each of the markets is equal to 65.000? How does
this solution compare to (3).

Chapter 4
1. The food company considers opening stores to serve customers in 5 markets. The distances (km)
between the markets are presented in the following table:
HCMC Long An Tien Giang Dong Nai Binh Duong
HCMC 0 35 70 35 55
Long An 35 0 30 80 100
Tien Giang 70 30 0 100 130
Dong Nai 35 80 100 0 30
Binh Duong 55 100 130 30 0
The demands of the 5 markets are: HCMC (100.000), Long An (40.000), Tien Giang (30.000),
Dong Nai (50.000) and Binh Duong (40.000). All the demands of the 5 markets must be served.
The company wants to open P stores to serve the markets and maximize the total demand served
within 80 km. The average service distance is no more than 100 km. The maximum distance that
each store can serve is 120 km.
1. Establish the mathematical model (objective function and constraints with indexes) to solve the
company problem.
2. If the company wants to open 2 stores, where should they be located? What is the total demand
served within 80 km?
3. If the company wants to open 5 stores, where should they be located? What is the total demand
served within 80 km?
4. What are the best 5 stores if the demand for each of the markets is equal to 65.000? How does
this solution compare to (3).
5. Using the result of (3) to run the model 2 (in the book).

2. The food company considers opening stores to serve customers in 5 markets. The distances (km)
between the markets are presented in the following table:
HCMC Long An Tien Giang Dong Nai Binh Duong
HCMC 0 35 70 35 55
Long An 35 0 30 80 100
Tien Giang 70 30 0 100 130
Dong Nai 35 80 100 0 30
Binh Duong 55 100 130 30 0
The demands of the 5 markets are: HCMC (100.000), Long An (40.000), Tien Giang (30.000),
Dong Nai (50.000) and Binh Duong (40.000). All the demands of the 5 markets must be served.
The company wants to open P stores to serve the markets and minimize the total demand weighted
distance. The company wants to serve at least 75% of the total demand within 80 km. The
maximum distance that each store can serve is 120 km.
1. Establish the mathematical model (objective function and constraints with indexes) to solve the
company problem.
2. If the company wants to open 2 stores, where should they be located? What is the total demand
served within 80 km?
3. If the company wants to open 5 stores, where should they be located? What is the total demand
served within 80 km?
4. What are the best 5 stores if the demand for each of the markets is equal to 65.000? How does
this solution compare to (3).

Chapter 5
1. The fashion company considers opening stores to serve customers in 5 markets. The distances
(km) between the markets are presented in the following table:
Distance HCMC Long An Tien Giang Dong Nai Binh Duong
HCMC 0 35 70 35 55
Long An 35 0 30 80 100
Tien Giang 70 30 0 100 130
Dong Nai 35 80 100 0 30
Binh Duong 55 100 130 30 0
The demands of the 5 markets are: HCMC (100.000), Long An (40.000), Tien Giang (30.000),
Dong Nai (50.000) and Binh Duong (40.000). All the demands of the 5 markets must be served.
The company wants to open P stores to serve the markets and minimize the total demand weighted
distance. The effective volume of demands for each market being assigned to each store (Vol ij), and
the capacity of each store (Capi) are presented in the following table:
Voli,j HCMC Long An Tien Giang Dong Nai Binh Capi
Duong
HCMC 100.000 5.000 5.000 5.000 5.000 120.000
Long An 0 40.000 5.000 0 0 45.000
Tien Giang 0 5.00 30.000 0 0 35.000
Dong Nai 5.000 0 0 50.000 0 55.000
Binh 0 0 0 5.000 40.000 45.000
Duong

1. Establish the mathematical model (objective function and constraints with indexes) to solve the
company problem.
2. If the company wants to open 2 stores, where should they be located? What is the total demand
weighted distance? the average distance?
3. If the capacity of each store decreases by 20%, compare the average distance with (2)?
4. If the capacity of each store decreases by 50%, compare the average distance with (2)?

Chapter 6

1. The fashion company considers opening stores to serve customers in 5 markets. The distances
(disti,j) and unit transportation costs (trans i,j) between the markets are presented in the following
table. For example From A to B is 35 (0.4) which means the distance is 35km and the unit
transportation cost is $0.4.
Disti,j (transi,j) A B C D E
A 0 (0) 35 (0.4) 70 (0.5) 35 (0.4) 55 (0.45)
 B 35 (0.4) 0 (0) 30 (0.3) 80 (0.6) 100 (0.7)
C 70 (0.5) 30 (0.3) 0 (0) 100 (0.7) 130 (0.75)
D 35 (0.4) 80 (0.6) 100 (0.7) 0 (0) 30 (0.3)
E 55 (0.45) 100 (0.7) 130 (0.75) 30 (0.3) 0 (0)
The demands of the 5 markets are: A (150.000), B (45.000), C (35.000), D (55.000) and E (45.000).
The supply chain design must consider the constraints: (1) All the demands of the 5 markets must
be served; (2) The company wants to open 3 stores to serve the markets; (3) Only opened stores can
serve the markets; and (4, 5) other binary constraints.
1. If the company wants to minimize the total demand-weighted distance (model A):
a. Establish the mathematical model (objective function and constraints with indexes).
b.What is the value of total demand-weighted distance? Explain your solution (which stores
are opened and which markets they serve?)
c. Based on your solution, calculate the total transportation cost.
2. If the company wants to minimize the total transportation cost (model B):
a. Establish the mathematical model (objective function and constraints with indexes).
b.What is the value of total transportation cost? Explain your solution (which stores are
opened and which markets they serve?)
c. Based on your solution, calculate the total demand-weighted distance.
3. Which model is better if you consider:
a. The total transportation cost
b. The total demand-weighted distance.

2. The transportation data are presented in the following table.

Region Origin Destination Shipment Freight Distance
city city (Kg) cost (Km)
($)
South A B 39800 1286 663
A C 33503 1043 567
A D 38138 1149 586
A E 30500 1376 740
A F 34313 890 461
North A G 32175 625 393
A H 37409 417 245
A I 34305 730 415
A J 36695 996 576
A L 39253 742 464
1. Calculate the unit transportation cost ($/km) for both regions and the average unit transportation
cost estimated from city A to all the destination cities?
2. Use the regression to estimate the average unit transportation cost ($/km) from city A to all the
destination cities?
Chapter 7
1. The fashion company considers opening stores to serve customers in 5 markets. The effective
volume of demands for each market being assigned to each store (Volij), and the capacity of each
store (Capi) are presented in the following table:
Voli,j HCMC Long An Tien Giang Dong Nai Binh
Duong
HCMC 100.000 5.000 5.000 5.000 5.000
Long An 0 40.000 5.000 0 0
Tien Giang 0 5.00 30.000 0 0
Dong Nai 5.000 0 0 50.000 0
Binh 0 0 0 5.000 40.000
Duong
The unit transportation costs are shown below:
HCMC Long Tien Dong Binh
Trans cost
An Giang Nai Duong
HCMC 0 0.4 0.5 0.4 0.45
Long An 0.4 0 0.3 0.6 0.7
Tien Giang 0.5 0.3 0 0.7 0.75
Dong Nai 0.4 0.6 0.7 0 0.3
Binh Duong 0.45 0.7 0.75 0.3 0

The company considers opening stores with 3 options (small, medium, and large size). The
demands, variable costs, and fixed costs are presented in the following table:
Fixed
Fixed Fixed
cost Capacity Capacity Capacity
Variabl cost cost
Demand (smal (large (medium (small
e cost (large (medium
l store) store) store)
store) store)
store)
120000 100000 80000
100000 0.2 10000 5000 3000
cHCMC
Long 45000 30000 20000
40000 0.3 8000 4000 2000
An
Tien 35000 20000 15000
30000 0.35 7000 3000 1500
Giang
Dong 55000 35000 25000
50000 0.25 9000 4500 2500
Nai
Binh 45000 30000 15000
40000 0.3 8000 4000 2000
Duong

Establish the mathematical model (objective function and constraints with indexes) to solve the
company problem if the company wants to minimize the total costs including transportation, fixed
and variable costs. The following constraints must be applied:
(1) all the demand must be served
(2) (3) the max and the min number of opened stores are 2 and 5 respectively.
(4) Only 1 option w is chosen for a facility at one location.
(5) A facility is never assigned more demand than it can handle.
(6) The facility i with option w must be opened then it can serve the customer j.
(7) (8) All the decision variables are binary.