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Unformatted text preview: 14.05.2010 IE398 - Systems Thinking Spring 2009 Recitation 10 Consider a case of transporting a commodity (say yogurt or eggs) from a single supplier company that owns a few facilities located in different regions. Hence, there are supply and demand points with capacities and ordering rates, respectively . You can also assume a road network. Moreover, there are relevant costs for the supplier, the trucking company (because all the delivery trucks are hired) and the customers (most of them are supermarkets). The supplier company desires to improve its competitive position by keeping the loyalty of its customers at its highest. However, it cannot give up its own return on investment, for its shareholders would not allow for that. One rather focused problem solving approach would construct a transportation model to minimize the total transportation cost subject to capacity and order satisfaction constraints. Such a choice is the total transportation cost subject to capacity and order satisfaction constraints....
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- Spring '10
- analyst, Supplier Company, road network., CATWOE