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## Do you need help with Supply Chain modelling assignment University of Sussex

### PART A: (40 marks)

Company A is trying to create one or more warehouses to ship products to five customers. The location of the five customers and the number of shipments per year needed by each customer are given in Table 1. All locations are in miles, relative to the point x = 0 and y = 0. Following initial investigation, the company has identified two possible warehouse locations: L1 (3, 4) with an annual capacity of 750 shipments and L2 (100,110) with an annual capacity of 1500 shipments. Company A can build either or both of these warehouses. The annualised costs to build a warehouse are £50,000 in L1 and £30,000 in L2 respectively. If only one warehouse is built, it will ship to all customers. However, if both warehouses are built, then the company must decide which warehouse will ship to each customer. There is a travelling cost of £1 per mile.

• Develop an appropriate model to minimise total annual cost, and then use the Solver to optimise it.  [20 marks]
• Discuss the limitations of the optimisation model developed in (1).                      [20 marks]

Customer                   Location       Shipments/year

Table 1 Company A’s customers’ location and shipments PART B: (60 marks)

Figure 1. The possible supply chain network

Company B needs to purchase and transport 3000 units of products from Tier 3 supplier S3 every year. Due to the long distance between them, the purchased products need to be trans-shipped twice at Tier 1 and Tier 2 suppliers, respectively. The company has chosen 3 possible Tier 1 suppliers: S11, S12, and S13, and 3 possible Tier 2 suppliers, S21, S22, and S23, which can construct a possible supply chain network as shown in Figure 1. At the moment, none of the suppliers have the warehousing capacity available to handle the trans-shipped products. The company needs to pay an upfront fee to each Tier 1 and Tier 2 supplier to expand their warehouse to store their products.

After a fierce debate in the senior management team, Company B decided to only sign contract with 2 suppliers on Tier 1 and Tier 2, respectively. In other words, one supplier on Tier 1 and another supplier on Tier 2 will be excluded from the supply chain network shown in Figure 1.

Table 2 and Table 3 list the upfront fee Company B needs to pay to each individual supplier, and the warehousing capacity they can gain to stock their products after paying the fee.

Table 2 Upfront fee (in pounds) to be paid to Tier 1 suppliers and obtained capacity

Table 3 Upfront fee (in pounds) to be paid to Tier 2 suppliers and obtained capacity

Apart from the upfront fee, another type of cost Company B needs to consider is the transport cost. The transport rate between each pair of nodes on supply chain network has been given in Table 4 – 6.

Table 4 Transport rate (pounds/ unit) between Tier 3 suppliers and Tier 2 suppliers

Table 5 Transport rate (pounds/ unit) between Tier 2 suppliers and Tier 1 suppliers

Table 6 Transport rate (pounds/ unit) between Tier 1 suppliers and the focal company B

Company B aims to minimise total transport costs and the upfront fee paid to Tier 1 and Tier 2 suppliers whilst meeting the requirements of transporting 3000 units of product from S3 to Company

B. The company would like to know:

• Which two suppliers on Tier 1 and Tier 2 should Company B keep respectively? How many products should be transported between each pair of nodes on its supply chain network?

[40 marks]

• Using Company B’s network design as an example, discuss potential abuses/misuses of linear programming beyond violation of basic assumptions.

[20 marks]

### Guidelines

• Please refer to your assessment timetable on Canvas for the submission date.
• You will need to submit both your MS Word document and your Excel file to Canvas, and name both files after your candidate number (e.g., 123456.docx and 123456.xlsx). Failing to submit any of these files before the deadline will be considered as non-submission. HND Assignment help
• This is an independent assignment and should be completely individual work. Students may use library references, but collaboration between students will NOT be permitted for the memo. For Part A (1) and B (1), you may be allowed to help each other on the optimisation models, but collaboration between students will NOT be permitted for the Excel spreadsheet and comparing of final answers or results will NOT be permitted.
• The solutions to Part A (1) and Part B (1) should (a) have separate spreadsheets (that use the Solver to find the solution), but within a single Excel file; and (b) include the optimisation models in the MS word document clearly stating decision variables, objective function and all constraints. Get Assignment Help services from Punjab Assignment help.