Final-exam-Luong-Solution-Code-0001-for-students
Final-exam-Luong-Solution-Code-0001-for-students
Question 1:
actual baseline optimized baseline
Differences - The actual baseline is a - An optimized baseline is not as well defined as an
(6 pts) representation of the supply chain actual baseline. You have some flexibility in how
exactly as it was run in the past. In you set up the optimized baseline model. And you
practice, most modelers use data from may want to run several versions of the optimized
the previous year to build the actual baseline. The spirit of the optimized baseline is to
baseline model. clean up the baseline and come up with a model of
- In the actual baseline, we modeled what should have happened.
everything that actually happened. - In the optimized baseline, you want to replicate
what should have happened based on the rules you
had in place and if you executed them according to
plan.
Example We modeled everything that We run the model to minimize the total
(4 pts) happened, calculated the total transportation cost through setting the constraints
transportation cost using the historical that we would like to represent the rules to achieve
data, and compared the solution with the optimization.
the actual cost.
- It will almost never land in a location that exploits existing infrastructure, such as a city, a population center with a
workforce, railways, highways, or ports. The method cannot take advantage of true road distances or travel
restrictions—it has to rely on straight-line estimates based on latitude and longitude.
- It cannot be extended to include factors like costs, capacities, different types of facilities, different products, multiple
levels of facilities (hub and spoke, suppliers, warehouses, retailers, etc.), or other practical considerations.
c. (4 points) For COG, the percentage of population within 250 miles: 12.87%
a. (5 points) The unit transportation cost ($/km) for the Southern region: 2.20
The unit transportation cost ($/km) for the Northern region: 1.98
P1
The average unit transportation cost estimated from city A to all the destination cities: 2.09
b. (9 points) The average unit transportation cost: 2.13
This value is significant? Why? Yes because P-value < 0.05
Question 5:
a. (4 points) Establish the mathematical model to minimize the total demand-weighted distance
Question 6:
P2
b. (10 points) What is the total demand served within 50 km? 330.000
Where are the 3 stores located? Facet, Bentie and Nobi
Which store serves which market? Facet Flora, Facet; Bentie Bentie; Nobi Kenji and Nobi
c. (5 points) If the company wants to open 4 stores. How many percentages of the total demand served within 50 km
increase? 0%
d. (5 points) No, still 330.000
If yes, how many percentages in the change of objective function? 0%
e. (5 points) Constraint (3) must be changed to: Y11 = 1; Y12 = 1; Y33 = 1; Y44 = 1; Y55 = 1
f. (5 points) Both solutions have the same value of objective function of 330.000
g. (5 points) In this case, the value of high service demand set for the second model should be: 330.000
Why? The second model is run to improve the first model (question a) thus one of its constraints must ensure
the objective function of the first model is respected. That means the value of the total demand served within 50
km (objective function of the first model) should be set as the high-service demand for the second model.
P3