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SupplyChain Case2
SupplyChain Case2
The question posed by RETAIL-Z is where to locate the warehouses (and of which type), and
how to assign stores to warehouses so that all stores’ demands are fully satisfied with a minimum
cost. (Note a store’s demand can be fulfilled from more than one warehouse facility).
Question-1: Propose a Linear Programming Formulation for RETAIL-Z challenge. You must
use the afore defined notations and indexes. Clearly specify (mathematical + description, i.e,
each line of the mathematical formulation should be explained) of the following :(1) decision
variables, (2) objective function, and (3) constraints.
Question-2: Build your model on Cplex OPL and solve the given data set.
The company is operating in a 50 by 50 km city, it owns a set of 50 retailing stores as shown in
the figure. Management identified 15 candidate sites as potential location for warehouses and
identified the different costs at each site. You are given in the excel file the X and Y coordinates
of all facilities, use Euclidean Distance to calculate the distance between any two points.
Assume its costs 0.5 QR to move one item one km.
Retailing Network
Candidate Sites for warehouses
Retailing Stores
50
40
30
20
10
0
0 10 20 30 40 50
Hint: Probably you need to construct a 65 (50 +15) by 65 (50+15) distance matrix. An easier
way would be to use OPL to calculate the distance and construct the matrix for you. (Execute
function)
Question-3-Propose a graphical display/ layout of your solution (map) and discuss the solution
and the new network design.
Required Deliverable:
You should provide a PowerPoint presentation with the following:
1-Title page with group Full names:
2- Detailed Model Formulation (parameters, decision variables, objective function and constraints)
3- 3 Screenshots from OPL Implementation: 1-Model File, 2- Data File and 3-Solution Log
(*) I will check in the class whether your Model is running or not
Each group is going to have 10 min in class to defend their choices and solutions.