Think of the logistics challenges Amazon UK is facing: they are sourcing from thousands of bookstores and through a few distributions centres they are delivering in millions of customers. Think now of the alternative setup that they just started implementing a few months ago where they have added another layer in this transportations network in-between the end customers and the distribution centres: that of collection points in local shops. solve all 4 parts (a) Give a generic formulation of a logistics cost minimisation LP problem for Amazon UK before the layer with the collection points was added, (b) gve a generic formulation of a logistics cost minimisation LP problem for Amazon UK with the collection points, (c) expand the latter so as to allow for transhipments in between the distributions centres and provide both a graphical network and an LP formulation, (d) Why did they decide to go for the introduction of collection points and under what conditions is this a sensible move?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Think of the logistics challenges Amazon UK is facing: they are sourcing from thousands of bookstores and through a few distributions centres they are delivering in millions of customers. Think now of the alternative setup that they just started implementing a few months ago where they have added another layer in this transportations network in-between the end customers and the distribution centres: that of collection points in local shops. solve all 4 parts

(a) Give a generic formulation of a logistics cost minimisation LP problem for Amazon UK before the layer with the collection points was added,

(b) gve a generic formulation of a logistics cost minimisation LP problem for Amazon UK with the collection points,

(c) expand the latter so as to allow for transhipments in between the distributions centres and provide both a graphical network and an LP formulation,

(d) Why did they decide to go for the introduction of collection points and under what conditions is this a sensible move?

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