case assignment
hbouhamad
ex_11-21.xlsmTruckload
| Lot Sizing with Multiple Customers Delivered Truckloads Seperately | ||||||||
| Annual demand for Large customer, RL = | 60 | |||||||
| Annual demand for Medium customer, RM = | 24 | |||||||
| Annual demand for Small customer, RS = | 8 | |||||||
| Customer specific delivery cost, sL = | $ 250 | |||||||
| Customer specific delivery cost, sM = | $ 250 | |||||||
| Customer specific delivery cost, sS = | $ 250 | |||||||
| Unit Cost, CL = | $ 10,000.00 | |||||||
| Unit Cost, CM = | $ 10,000.00 | |||||||
| Unit Cost, CS = | $ 10,000.00 | |||||||
| Common delivery cost, S = | $ 800 | |||||||
| Holding cost, h = | 25% | |||||||
| Truck capacity = | 12.00 | |||||||
| Ship Full Truckloads independently | ||||||||
| # Deliveries /year schopra: schopra: Demand / truck capacity | Delivery Quantity schopra: schopra: Demand / Orders per year | Transport Cost schopra: schopra: Deliveries per year * (Common delivery cost + customer specific delivery cost) | Holding Cost | Total cost | Days of Inventory | |||
| Large | 5.0 | 12 | $ 5,250 | $ 15,000 | $ 20,250 | 37 | 8.451542547285166 | |
| Medium | 2.0 | 12 | $ 2,100 | $ 15,000 | $ 17,100 | 91 | 5.3452248382484875 | |
| Small | 0.7 | 12 | $ 700 | $ 15,000 | $ 15,700 | 274 | 3.0860669992418384 | |
| $ 53,050 | ||||||||
| Your Guess Total Cost | $ 155,140 | |||||||
| Optimal Solution Cost | $ 53,050 | |||||||
| Savings from Optimization | $ 102,090 |
&A
Optimal Separate
| Lot Sizing with Multiple Customers Delivered Optimal Quantities Seperately | ||||||||
| Annual demand for Large customer, RL = | 60 | |||||||
| Annual demand for Medium customer, RM = | 24 | |||||||
| Annual demand for Small customer, RS = | 8 | |||||||
| Customer specific delivery cost, sL = | 250 | |||||||
| Customer specific delivery cost, sM = | 250 | |||||||
| Customer specific delivery cost, sS = | 250 | |||||||
| Unit Cost, CL = | 10,000 | |||||||
| Unit Cost, CM = | 10,000 | |||||||
| Unit Cost, CS = | 10,000 | |||||||
| Common delivery cost, S = | 800 | |||||||
| Holding cost, h = | 25% | |||||||
| Truck capacity = | 12.00 | |||||||
| Ship Optimal Quantities independently | ||||||||
| # Deliveries /year schopra: schopra: Demand / Quantity | Delivery Quantity schopra: schopra: Economic order quantity | Transport Cost | Holding Cost | Total cost | Days of Inventory | |||
| Large | 8.5 | 7.10 | $ 8,874 | $ 8,874 | $ 17,748 | 22 | 8.451542547285166 | |
| Medium | 5.3 | 4.49 | $ 5,612 | $ 5,612 | $ 11,225 | 34 | 5.3452248382484875 | |
| Small | 3.1 | 2.59 | $ 3,240 | $ 3,240 | $ 6,481 | 59 | 3.0860669992418384 | |
| $ 35,454 | ||||||||
| Your Guess Total Cost | $ 155,140 | |||||||
| Optimal Solution Cost | $ 35,454 | |||||||
| Savings from Optimization | $ 119,686 |
&A
Optimal simultaneous
| ` | |||||||||
| Annual demand for Litepro, RL = | 60 | ||||||||
| Annual demand for Medpro, RM = | 24 | ||||||||
| Annual demand for Heavypro, RH = | 8 | ||||||||
| Product specific ordering cost, sL = | $ 250 | ||||||||
| Product specific ordering cost, sM = | $ 250 | ||||||||
| Product specific ordering cost, sH = | $ 250 | ||||||||
| Unit Cost, CL = | $ 10,000 | ||||||||
| Unit Cost, CM = | $ 10,000 | ||||||||
| Unit Cost, CH = | $ 10,000 | ||||||||
| Common order cost, S = | $ 800 | ||||||||
| Holding cost, h = | 25% | ||||||||
| Deliver all customers simultaneously | |||||||||
| # Deliveries /year schopra: schopra: Demand / Quantity | Delivery Quantity schopra: schopra: Economic order quantity | Transport Cost | Holding Cost | Total cost | Days of Inventory | ||||
| Large | 8.6 schopra: schopra: This order frequency minimizes total cost. All customers are delivered to with the same frequency |
schopra: schopra: Demand / Quantity | 6.97 | $ 9,044 | $ 8,707 | $ 17,751 | 21.2 | 8.613567692141089 | |
| Medium | 8.6 | 2.79 | $ 2,153 | $ 3,483 | $ 5,636 | 21.2 | |||
| Small | 8.6 | 0.93 | $ 2,153 | $ 1,161 | $ 3,314 | 21.2 | |||
| $ 26,702 | |||||||||
| Your Guess Total Cost | $ 136,558 | ||||||||
| Optimal Solution Total Cost | $ 26,702 | ||||||||
| Savings from Optimization | $ 109,856 |
&A
Tailored aggregation
| Tailored Deliveries to Customers | ||||||
| Annual demand for Litepro, RL = | 60 | |||||
| Annual demand for Medpro, RM = | 24 | |||||
| Annual demand for Heavypro, RH = | 8 | |||||
| Product specific ordering cost, sL = | $ 250 | |||||
| Product specific ordering cost, sM = | $ 250 | |||||
| Product specific ordering cost, sH = | $ 250 | |||||
| Unit Cost, CL = | $ 10,000 | |||||
| Unit Cost, CM = | $ 10,000 | |||||
| Unit Cost, CH = | $ 10,000 | |||||
| Common order cost, S = | $ 800 | |||||
| Holding cost, h = | 25% | |||||
| Deliver to selected subset of customers in each delivery | ||||||
| Step 1: Calculate relative frequency | ||||||
| Step 1 | Step 2 | Step 3 | Step 4 | |||
| mi | n | |||||
| Large | 8.5 schopra: schopra: Delivery frequency if each customer is separate (absorbs the common delivery cost) | 17.3 schopra: schopra: Delivery frequency if each customer only absorbs specific delivery charge | 1.0 | 9.37 schopra: schopra: Optimal delivery frequency given mi |
||
| Medium | 5.3 | 11.0 | 1.0 | 9.37 | ||
| Small | 3.1 | 6.3 | 2.0 | 4.68 | ||
| Calculate costs | ||||||
| Optimal Solution | Frequency multiple 1/mi | # orders /year n | Order Size Q | Order Cost | Holding Cost | Total cost |
| Large | 9.37 | 6.41 | $ 9,834 | $ 8,008 | $ 17,842 | |
| Medium | 1.00 | 9.37 | 2.56 | $ 2,341 | $ 3,203 | $ 5,545 |
| Small | 0.50 | 4.68 | 1.71 | $ 1,171 | $ 2,135 | $ 3,306 |
| $ 26,693 | ||||||
&A
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