you are expected to explain the purpose and application of optimisation modelling in any two relevant operational areas (for example, manufacturing and transportation planning etc.) given the

Scenario:

Following your course completion, you have secured the role of Logistics Analyst in a leading manufacturing company, which owns four (4) manufacturing facilities (factories). These factories distribute three (3) products to their key customers (6 customers) directly as well as through four (4) warehouses. During initial meetings with your line manager, you have noticed that the company is struggling to manage its transportation network operations efficiently.

Your line manager has asked you to produce an executive report, which may help the company to understand the complexity of business operations and the significance of modelling techniques to reach to an optimal solution. The company is also interested to know more about benefits of using software solutions in this regard. In addition, your line manager has requested you to include an analysis from a linear programming model for the data set (given in a separate Excel file) to produce the optimal distribution of the product.

Tasks

For Task 1: you are expected to explain the purpose and application of optimisation modelling in any two relevant operational areas (for example, manufacturing and transportation planning etc.) given the nature of their complexities. You can make use of 4-6 academic references (literature) for this task.

For Task 2: a mathematical model is required in this case. Explain the way in which the mathematical model is developed and implemented using a dedicated computer software (Excel). This model can be presented in relation to the transhipment model. Clear identification of variables, objective function and constrains are expected in this case. It is useful to paste Excel snapshots to your report.

For Task 3: critical insights on your developed model and a dedicated discussion on the results obtained are expected in this case. The results refer to the final delivery cost, delivery plan and meeting the required constraints. The discussion should incorporate sensitivity analysis. It is useful to paste Excel snapshots to your report.

For Task 4: you are expected to compare the merits and drawbacks of Excel with other commercially available optimisation software packages (Compare with at least two packages).

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