Assignment Instructions/ Description
Graded Assignment 2: Colombian Premium Coffee A traditional Colombian Coffee manufacturer called CPC has hired your services as a supply chain consultor to analyze the distribution of its brand-new premium product, named Coffee Indeed ®. This product is 1 package containing 1-kilogram of ground and roasted Arabica coffee to be commercialized and distributed in three cities: Bogotá (DC 1), Medellín (DC 2), and Cali (DC 3). Due to governmental tax benefits, the company roasts and packs the product in two factories: Barranquilla (Plant 1) and Santander (Plant 2). CPC hires carriers to transport the products from the plants to each of the three distribution centers (DCs). Each DC has a different demand, and each plant has a different production capacity. Demand: o Bogotá: 345,000 units per week o Medellín: 263,000 units per week o Cali: 172,000 units per week Plant Capacities: o Barranquilla: 610,000 units per week o Santander: 350,000 units per week Part 0 (ungraded) 0 points possible (ungraded) This question works as a checkpoint to support you in building your model. Have in mind that this Graded Assignment does not constraint the number of pallets to be an integer; therefore, you can use the number of pallets with decimal places. Under the same assumption, the price per pallet is proportional to the number of units it's carrying, so you can analyze the transportation cost in the same units that Demand and Capacity are expressed. We know this is not always the case in real life but think of this as a simplified model. Please, make your model and set all decision variables into "1". A) What is the capacity constraint of Barranquilla (answer in number of units) B) What is the total number of units of products transported from Barranquilla (Plant 1) to all DCs? C) What is the total number of units of product transported from all plants to Medellín (DC 2)? incorrect D) What is the total demand of Medellín (DC 2) in units? correct Show answer Submit You have used 2 of 2 attemptsSome problems have options such as save, reset, hints, or show answer. These options follow the Submit button. Part 1 0.5/0.5 points (graded) Leonard Long, the network design manager, asked you to create a network design model to optimize the transportation flow of Coffee Indeed ® from the plants to the DCs. CPC organizes the units of product in pallets, each pallet holds 1,000 units (one thousand units). The price table of the carrier to move 1 pallet from each plant to each DC ($/pallet) is shown below: $/pallet Bogotá (DC 1) Medellín (DC 2) Cali (DC 3) Barranquilla (Plant 1) 130.00 90.60 142.00 Santander (Plant 2) 53.60 41.60 88.80 What is the minimum total weekly cost for distributing the products from the plants to the three DCs? Round your answer to the nearest integer with no commas or currency signs. For example, if your answer is $168,987.25 then you would enter 168987. How many plants are used? Submit You have used 1 of 2 attemptsSome problems have options such as save, reset, hints, or show answer. These options follow the Submit button. Part 2 0.0/1.0 point (graded) The marketing team realizes that a 1-kilogram package might not attend all types of demand for premium coffee and decide to test a second product. This other product is 1 package containing 500 grams of the ground and roasted Arabica coffee to be commercialized in the same cities. Both plants can produce both products: the 1-kilogram Coffee Indeed ® (product 1) and the 500-grams Coffee Indeed ® (product 2). Capacity in units applies to any product unit, independently of its weight or packaging. This new product 2 is transported in the same vehicles of product 1 using the same transportation costs; however, 1 pallet can hold 2000 units (two thousand) of product 2. As the team foresees light cannibalization of the market share, the planning team forecasted a new demand for both products.
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