Lecture 5

Question 1

Framework for netwrok desgin decision includes:

Answer 1

Phase 1 – General strategy – where are we where do we want to go?
Phase 2 – where in the world do, we want to be
Phase 3 – modelling phase
Phase 4 – location choice

Question 2

Network design starts with:

Answer 2

1) Evaluate network performance based on:
a. What value do we offer?
b. What cost is created from meeting customer needs?
2) Evaluate impact of different network options.
3) Know the profitability of the network by the generated revenue.

Question 3

A mathematical model is ____. Modelling is a good ____ to describe ___, explain ___, and predict the ___, which all can guide decisions to be done. In creating the model, you often find the solution. We use different models for different ____. Criticism: Models are____ and the future is ____, so think about the ______.

Answer 3

A mathematical model is a simplified representation of reality. Modelling is a good strategy to describe reality, explain past, and predict the future, which all can guide decisions to be done. In creating the model, you often find the solution. We use different models for different purposes. Criticism: Models are based on assumption and the future is always uncertain, so think about the assumption.

Question 4

Xij:

Answer 4

flow on arc from i to j in units per week

Question 5

Ki :

Answer 5

production capacity in plant i in units per week

Question 6

Dj :

Answer 6

demand in customer region j in units per week

Question 7

cij :

Answer 7

cost per unit transported on arc from i to j

Question 8

i :

Answer 8

origin

Question 9

j :

Answer 9

destination

Question 10

e :

Answer 10

transshipment

Question 11

The inbound flow must equal …

Answer 11

the outbound flow at transshipment points, cross-docks etc.