2/5/25, 10:45 PM Week 1 Graded Assignment | Week 1: Basic Supply Chain Network Design | Supply Chain Design | edX

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Graded Assignment 2: GoClean&Co

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2/5/25, 10:45 PM Week 1 Graded Assignment | Week 1: Basic Supply Chain Network Design | Supply Chain Design | edX

Homework due Jan 29, 2025 20:30 IST Completed

Graded Assignment 2: GoClean&Co

0 points possible (ungraded)
GoClean&Co (GCC) hired you as its Logistics Manager in charge of transshipments. GoClean&Co is
a joint public-private energy company dedicated to generating clean and safe nuclear energy. GCC
uses a new technology based on radioactive pellets. These pellets can generate electricity for years
in GCC's nuclear plants. Once the radioactive pellets are depleted, they are removed from active use
and collected at the plants for removal at the end of the month. Once a month, the depleted pellets
are removed from the plants, transported to an inspection site for examination, and then moved
again to a dedicated storage site for safekeeping.

You have been informed that two of GCC's nuclear plants, called Plant One and Plant Two, need to
move out depleted pellets in the following amounts:

Plant One wants to ship out up to 280 pellets per month

Plant Two wants to ship out up to 360 pellets per month
This is how many pellets these two plants want to ship out per month. However, the exact number of
pellets that will actually be moved out from each plant depends on the space that is available at the
dedicated storage sites that would ultimately receive them. GCC is mandated by law to move as
many pellets out of the plants as the storage sites are able to receive. You have been informed that
two of GCC's dedicated storage sites, called Storage X and Storage Y, are ready to receive depleted
pellets from GCC's plants, in the following amounts:

Storage X is ready to receive a total of 305 pellets per month

Storage Y is ready to receive a total of 325 pellets per month
Since the two plants want to ship out more pellets per month than the two storage sites can receive,
you know that some pellets will have to stay in their plant of origin until a later time. This is not a
problem, however, since every one of GCC's plants has the capacity to temporarily store whatever
pellets are not shipped out, and the law allows this.

At this time, only one inspection site is available to receive the pellets from the two plants, inspect
them, and send them out to the two storage sites. It is called Inspection Site A. Notice that
inspection sites do not have storage capacity: the pellets come in, are inspected, and continue their
trip to the storage sites.

Moving radioactive material is not easy and therefore it is not cheap either. There is a lot of planning
and security involved. Each shipment of pellets has to be closely monitored and protected to
prevent the loss of radioactive material. Also, the vehicles transporting the material have to move
relatively slowly, to avoid accidents. Therefore, it is very expensive to transport the radioactive
pellets from the plant to the inspection site, and from there to the storage site. Based on estimates
and historical data, GCC has calculated the following transportation costs, in dollars per pellet
moved:

It costs 13.58 dollars to move one pellet from Plant One to Inspection Site A
It costs 16.54 dollars to move one pellet from Plant Two to Inspection Site A
It costs 7.57 dollars to move one pellet from Inspection Site A to Storage X
It costs 16.46 dollars to move one pellet from Inspection Site A to Storage Y
You decide to optimize the transhipment of depleted pellets from the plants to the storage sites
(stopping on the way at Inspection Site A, of course) in order to minimize the overall monthly
transportation cost. In this optimized solution, how many pellets will Plant Two be able to ship out to
the Inspection Site A every month? (This question is not graded).

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2/5/25, 10:45 PM Week 1 Graded Assignment | Week 1: Basic Supply Chain Network Design | Supply Chain Design | edX

350 

Submit You have used 1 of 2 attempts

Part 1
1.0/1.0 point (graded)
In this optimized solution, how much is the overall monthly transportation cost for GCC? (This
question is graded).

Give your answer in dollars (up to 2 decimal places), without typing in the box a dollar sign or comma. For
example, if your answer is $1,234, type 1234 in the box. Hint: The answer is more than 15000 but less than
20000.
17416.15 

Submit You have used 2 of 2 attempts

New Inspection Site

0 points possible (ungraded)
Good news! Your colleague Catherine Nelson informs you that second inspection site has become
available to receive pellets from the two plants, inspect them, and send them out to the two storage
sites. It is called Inspection Site B. To the extent that it is more economical to use this inspection site,
it can be used.

Without knowing anything about the transportation costs related to this new inspection site, can we
know anything about the overall transportation cost that GCC will pay every month to move the
depleted pellets from the plants to the inspection site(s) and then the storage sites? (This question is
not graded).
Select the best answer

The cost can remain the same or become higher, but it will not be lower.

The cost can remain the same or become lower, but it will not be higher.

It is impossible to know which of the two statements above will be the case.

Submit You have used 1 of 2 attempts

Part 2
0.0/1.0 point (graded)
GCC has calculated the following transportation costs for Inspection Site B, in dollars per pellet
moved:

It costs 12.6 dollars to move one pellet from Plant One to Inspection Site B
It costs 16.2 dollars to move one pellet from Plant Two to Inspection Site B
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2/5/25, 10:45 PM Week 1 Graded Assignment | Week 1: Basic Supply Chain Network Design | Supply Chain Design | edX

It costs 9.45 dollars to move one pellet from Inspection Site B to Storage X
It costs 15.64 dollars to move one pellet from Inspection Site B to Storage Y
As before, you will optimize the transhipment of depleted pellets from the plants to the storage sites,
stopping first at the inspection sites, so as to minimize the overall monthly transportation cost. How
much will this cost GCC every month? .

Give your answer in dollars, without typing in the box a dollar sign or comma. For example, if your answer is
$1,234, type 1234 in the box. Hint: In this optimal solution, Plant Two ships a total of 45 pellets per month to
Inspection Site B.
17488.45  Answer: 16693.55

Again you need to formulate this problem as a transhipment problem.

Decision variables: a) Pellets shipped from Plants (Plant One and Two) to Inspection Sites (A and
B) - 4 variables b) Pellets shipped from Inspection Sites (A and B) to Storage Sites (Storage X
and Storage Y) - 4 variables
Objective function: Minimize monthly transportation cost
Subject to: Capacity contraints (2), demand constraints (2) and conservation of flow constraints
(2).

Submit You have used 2 of 2 attempts

 Answers are displayed within the problem

New Plant and Storage Site

0 points possible (ungraded)
You have just received two e-mails from your boss. The first informs you that a third nuclear plant,
called Plant Three, is ready to move out up to 340 depleted pellets per month. The second tells you
that a third dedicated storage site, called Storage Z, is ready to receive a total of 320 depleted
pellets per month from GCC's plants. GCC has calculated the following transportation costs for the
new plant and storage site, in dollars per pellet moved:

It costs 16.37 dollars to move one pellet from Plant Three to Inspection Site A
It costs 10.81 dollars to move one pellet from Plant Three to Inspection Site B
It costs 15.69 dollars to move one pellet from Inspection Site A to Storage Z
It costs 15.41 dollars to move one pellet from Inspection Site B to Storage Z
Again you will optimize the transhipment of depleted pellets from the three plants to the three
storage sites, stopping first at the inspection site, so as to minimize the overall monthly
transportation cost. In this optimal solution, how many pellets is Plant One sending to Inspection Site
B? (This question is not graded).

280 

Submit You have used 1 of 2 attempts

Part 3
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2/5/25, 10:45 PM Week 1 Graded Assignment | Week 1: Basic Supply Chain Network Design | Supply Chain Design | edX

0.0/1.0 point (graded)

In this optimized solution, how much is the overall monthly transportation cost for GCC? (This
question is graded.) Hint: The answer is more than 21000 but less than 26000.

Give your answer in dollars, without typing in the box a dollar sign or comma. For example, if your answer is
$1,234, type 1234 in the box.
23520  Answer: 24976.15

You need to formulate this problem as a transhipment problem.

Decision variables: a) Pellets shipped from Plants (Plant One, Two and Three) to Inspection Sites
(A and B) - 6 variables b) Pellets shipped from Inspection Sites (A and B) to Storage Sites
(Storage X, Storage Y and Storage Z) - 6 variables
Objective function: Minimize monthly transportation cost
Subject to: Capacity contraints (3), demand constraints (3) and conservation of flow constraints
(2).

Submit You have used 2 of 2 attempts

 Answers are displayed within the problem

Part 4
0.0/1.0 point (graded)
GCC has learned that a new regulation, to be enacted soon, will require that no depleted pellets be
stored at the plants past the monthly removal date. To accommodate this, the storage sites have
increased the total number of pellets they are willing to receive every month, as follows:

Storage X is now ready to receive a total of 315 pellets per month

Storage Y is now ready to receive a total of 335 pellets per month
Storage Z is now ready to receive a total of 330 pellets per month
The new regulations also make it easier for pellets to be moved, which reduces all the transportation
costs in the network by 2.63 percent. (This means you have to multiply all the previous
transportation costs by 0.9737 in order to get the new costs.) One last time, you will optimize the
transshipment of depleted pellets from the three plants to the three storage sites, stopping first at
the inspection sites, so as to minimize the overall monthly transportation cost.

In this optimized solution, how much is the overall monthly transportation cost for GCC?

Give your answer in dollars, without typing in the box a dollar sign or comma. For example, if your answer is
$1,234, type 1234 in the box.
25523.55  Answer: 25171.848975

You need to formulate this problem as a transshipment problem. Make sure to recalculate the
transportation costs by multiplying them by 0.9737.
Decision variables: a) Pellets shipped from Plants (Plant One, Two and Three) to Inspection Sites
(A and B) - 6 variables b) Pellets shipped from Inspection Sites (A and B) to Storage Sites
(Storage X, Storage Y and Storage Z) - 6 variables
Objective function: Minimize monthly transportation cost
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2/5/25, 10:45 PM Week 1 Graded Assignment | Week 1: Basic Supply Chain Network Design | Supply Chain Design | edX

Subject to: Capacity constraints (3), demand constraints (3), and conservation of flow
constraints (2).
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