-Chiara Spampatti-

Proposed Exercise: 

Suppose we want to maximize our profit, selling toys from our facotry in Italy to different countries in the world (China, Spain, Bulgary, Denmark). First of all we should choose where to locate our point of sales. We are facing a localization problem that we could cope with one of the main methods of logistics design: “weighted method”

WEIGHTED METHOD weight China Spain Bulgary Denmark
Factors
distance from Factory 5 60 10 20 20
customer target 3 20 30 20 30
purchase power 3 10 30 15 45
rent prices of the store 4 10 30 10 50

Once decided the location of the selling point, we should consider the transportation costs to trade our toys.

transportation model
UNIT COST store 1 store 2 store 3 capacity
Warehouse 1 4 3 2 1000
warehouse 2 3 4 5 700
warehouse 3 3 3 6 700
demand 1000 500 800 2300/2400


Proposed solution: 

 

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