Logistics Optimization

In order to achieve the objectives of this assignment, students will need to follow these steps:
1. Read and understand the given business case thoroughly, paying close attention to the
relationships between variables, constraints, and objectives.
2. Create an Excel spreadsheet to model the supply chain, including variables for production
at each OEM, transportation costs, CO2 emissions, and other relevant factors. Organize
the data in a clear and structured manner.
3. Using Excel Solver, set up an optimization problem with the objective of minimizing
CO2 emissions, subject to the constraints given in the business case, such as budget
limitations and minimum order quantities.
4. Run the Solver to obtain the optimal solution for the initial budget constraint of CNY 3
billion.
5. Next, increase the budget by 10% and re-run the Solver to determine the new optimal
solution. Analyze the results to understand the impact of the increased budget on CO2
emissions and other supply chain metrics.
6. For students aiming for excellence, experiment with other budget increase percentages to
find a balanced supply chain model that achieves cost-efficiency for the company and
reduces CO2 emissions. Document and present the findings in a clear and concise
manner.
7. Draw conclusions from the optimization results, discussing the trade-offs between cost,
CO2 emissions, and other relevant factors. Suggest potential strategies for further
improving the supply chain's environmental impact and overall efficiency.