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Instructions

The document describes a supply chain optimization case study for Acme Honey Company. It involves using linear optimization in Microsoft Excel to determine the optimal shipments from Acme's 4 distribution centers in Arizona to its 10 retail stores to minimize total weekly shipping costs. The case study provides distribution center capacity and retail store demand data. It asks the analyst to run linear optimization using the Solver tool to find the shipment amounts that minimize costs while respecting the capacity and demand constraints. The results and recommendations are to be presented in a 15-slide PowerPoint.

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0% found this document useful (0 votes)
98 views

Instructions

The document describes a supply chain optimization case study for Acme Honey Company. It involves using linear optimization in Microsoft Excel to determine the optimal shipments from Acme's 4 distribution centers in Arizona to its 10 retail stores to minimize total weekly shipping costs. The case study provides distribution center capacity and retail store demand data. It asks the analyst to run linear optimization using the Solver tool to find the shipment amounts that minimize costs while respecting the capacity and demand constraints. The results and recommendations are to be presented in a 15-slide PowerPoint.

Uploaded by

Arkam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Assessment Description

The purpose of this case assignment is to apply linear optimization analysis to a supply chain
management analytics problem, determine solutions for addressing organizational challenges,
and communicate recommendations to organizational stakeholders.

Problem

Acme Honey Company sells honey in 1-gallon containers to customers in Arizona.


Specifically, the company has four Arizona distribution centers located in Phoenix, Tucson,
Flagstaff, and Safford. These distribution centers ship honey to their 10 retail store locations
throughout Arizona in Quartzsite, Window Rock, Holbrook, Sedona, Kingman, Prescott,
Snowflake, Alpine, Yuma, and Sierra Vista.

The "Supply Chain Analytics Case Study Template" includes weekly capacity data for the four
distribution centers and weekly demand data for their 10 retail store locations. Unit shipping
cost information from the distribution centers to the retail stores is also provided in the file.

The VP Operations at Acme Honey Company has asked you to determine how many 1-gallon
containers should be shipped from the distribution centers to the retail stores each week in
order to minimize total weekly shipping cost.

Linear Optimization Analysis

Using the Solver add-in in Microsoft Excel, the "Supply Chain Analytics Case Study
Template,"  run a linear optimization analysis to determine the optimal number of shipments
from each of the four distribution centers to the retail stores in order to minimize total  weekly
shipping cost. Utilize the following information when completing the "Supply Chain Analytic
Case Study Template."

1. There are four distribution center locations: Phoenix, Tucson, Flagstaff, and


Safford. Note that these locations can only  ship  product.
2. There are 10 retail stores: Quartzsite, Window Rock, Holbrook, Sedona, Kingman,
Prescott, Snowflake, Alpine, Yuma, and Sierra Vista. Note that these locations can
only  receiveproduct.
3. Use the capacity, demand, and unit shipping cost information in the " Supply Chain
Analytics Case Study Template" file.
4. Ensure that the "Simplex LP" option is specified as the solving method in Solver.
PowerPoint Presentation

Create a 15 slide PowerPoint presentation that summarizes the setup and results of your linear
optimization analysis. The analysis setup portion of the presentation should include the
following:

1. Objective function stated in mathematical/narrative form.


2. Constraints stated in mathematical/narrative form.
3. Excel model, including all necessary formulas and values.
4. Solver setup.
5. Optimized values based on Solver derived results.
6. Answer report and detailed interpretation of the information in this report.
7. Sensitivity report and detailed interpretation of the information in this report.
8. Any other sensitivity within Solver to help gain greater insights into your model. This
should include "what if" analyses (state any additional assumptions accordingly).

Include the results of each analysis in your presentation. The use of graphs, charts, and
supporting data is required. Interpret the results of each analysis and draw general conclusions
from the results. Make recommendations for the organization and address the organizational
challenges that may be encountered based upon your recommendations.

Organize the PowerPoint presentation in the following way (incorporate the content-specific
information described above accordingly):

1. Introduction and case background.


2. Objectives for each analysis.
3. Approach or method of analysis and justification for selecting the approach or method.
4. Results of each analysis.
5. Supporting graphs, charts, data, and spreadsheets for each analysis (minimum = 4,
maximum = 8).
6. Interpretation of the results for each analysis.
7. General conclusion of each analysis.
8. Recommendation to the organization, including addressing organizational challenges
that may be encountered based upon the recommendation.
9. Description of additional supply chain analytics approaches that might be useful for the
Acme Honey Company operation. 

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