Homework Help is Here – Start Your Trial Now!
Business
Operations Management
In the fashion retail industry transshipment is the flow of the products from a retail location to another one to satisfy the demand at the receiver location. Sender only sends a product if it has excess inventory to its demand and it occurs to rebalance the inventory among retail locations. Assume that there is a retailer with I stores. There are O products nominated for transshipment. The available inventory rio, i = 1,2,..., I, o = 1,2,..., 0, and demand levels dio, i = 1,2, ..., I, 0 = 1,2, ..., 0, for all stores are known. Moreover, the sales prices of these products are known and are the same in all stores, po, o = 1,2, ... O. There is a transportation cost when a product is sent from a store to another, Cij, i, j = 1, 2, ... D which is independent for the type of the product. Assume that if a product o is transshipped from store i, all its available inventory, i.e., rio, must be sent to a single store, thus, partial transshipment is not allowed. However, a store can receive the same product from different stores. (a) Formulate a mixed integer linear programming model to maximise the total profit. Describe decision variables, objective function, and constraints properly. (b) Now assume that all stores have a capacity on the number of products that they can transship. Modify your model to accommodate this extra condition.

In the fashion retail industry transshipment is the flow of the products from a retail location to another one to satisfy the demand at the receiver location. Sender only sends a product if it has excess inventory to its demand and it occurs to rebalance the inventory among retail locations. Assume that there is a retailer with I stores. There are O products nominated for transshipment. The available inventory rio, i = 1,2,..., I, o = 1,2,..., 0, and demand levels dio, i = 1,2, ..., I, 0 = 1,2, ..., 0, for all stores are known. Moreover, the sales prices of these products are known and are the same in all stores, po, o = 1,2, ... O. There is a transportation cost when a product is sent from a store to another, Cij, i, j = 1, 2, ... D which is independent for the type of the product. Assume that if a product o is transshipped from store i, all its available inventory, i.e., rio, must be sent to a single store, thus, partial transshipment is not allowed. However, a store can receive the same product from different stores. (a) Formulate a mixed integer linear programming model to maximise the total profit. Describe decision variables, objective function, and constraints properly. (b) Now assume that all stores have a capacity on the number of products that they can transship. Modify your model to accommodate this extra condition.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question
In the fashion retail industry transshipment is the flow of the products from a retail location to another one to satisfy the demand at the receiver location. Sender only sends a product if it has excess inventory to its demand and it occurs to rebalance the inventory among retail locations. Assume that there is a retailer with I stores. There are O products nominated for transshipment. The available inventory rio, i = 1,2, ..., I, o = 1,2, ..., 0, and demand levels dio, i = 1,2, ..., I, o = 1,2, ..., 0, for all O, stores are known. Moreover, the sales prices of these products are known and are the same in all stores, po, o = 1,2, ... 0. There is a transportation cost when a product is sent from a store to another, Cij, i, j = = 1, 2, ... D which is independent for the type of the product. Assume that if a product o is transshipped from store i, all its available inventory, i.e., rio, must be sent to a single store, thus, partial transshipment is not allowed. However, a store can receive the same product from different stores. (a) Formulate a mixed integer linear programming model to maximise the total profit. Describe decision variables, objective function, and constraints properly. (b) Now assume that all stores have a capacity on the number of products that they can transship. Modify your model to accommodate this extra condition.
Transcribed Image Text:In the fashion retail industry transshipment is the flow of the products from a retail location to another one to satisfy the demand at the receiver location. Sender only sends a product if it has excess inventory to its demand and it occurs to rebalance the inventory among retail locations. Assume that there is a retailer with I stores. There are O products nominated for transshipment. The available inventory rio, i = 1,2, ..., I, o = 1,2, ..., 0, and demand levels dio, i = 1,2, ..., I, o = 1,2, ..., 0, for all O, stores are known. Moreover, the sales prices of these products are known and are the same in all stores, po, o = 1,2, ... 0. There is a transportation cost when a product is sent from a store to another, Cij, i, j = = 1, 2, ... D which is independent for the type of the product. Assume that if a product o is transshipped from store i, all its available inventory, i.e., rio, must be sent to a single store, thus, partial transshipment is not allowed. However, a store can receive the same product from different stores. (a) Formulate a mixed integer linear programming model to maximise the total profit. Describe decision variables, objective function, and constraints properly. (b) Now assume that all stores have a capacity on the number of products that they can transship. Modify your model to accommodate this extra condition.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 8 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS