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Unformatted text preview: costs $1.00 per unit; SuperExpress Shipping (arrives immediately) and costs $2.50 per unit. a) Formulate a 2stage SLP that ensures all demand is met one month from today assuming that decisions on shipping have to be made today. b) What is the optimal solution to the SLP formulated above? c) What happens to the shipping schedule if the cost of the SuperExpress Shipping goes up to $3.00/unit, $5.00/unit, or down to $1.20/unit? d) Compare this with a model that ships according to the expected demand in 1 month. Assume that lost sales costs are $3.00 per unit and excess stock just sits at the store....
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This note was uploaded on 04/20/2011 for the course MIE 376 taught by Professor Daniel during the Spring '11 term at University of Toronto Toronto.
 Spring '11
 Daniel

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