IEOR 153 HW 6 Eddie Lo 19483002 1. = =- = = max ri 1nj 1mhiyij αi 1nj 1mhidijyij . . = ≤ ; = = ; ≤ ; = , ; ≥ = , … s t j 1myij 1 j 1mxj P yij xj xj 0 1 yij 0 all for j 1 2 m , = , … i 1 2 n 2. An example of an industry that needs a large warehouse is the printed book industry, where demand for a specific book is not necessarily constant, but needs to be in stock to meet the demand when it is needed. Large warehouses are needed as there are low margins and high outbound transportation costs. An example of an industry that needs a small warehouse is for Apple products, at least at present. There are high margins and overnight delivery is typically used to get the products to retailer stores to meet the currently high customer demand. An example of an industry that needs medium sized warehouses the clothing industry, where it has more of a push-based supply chain and inventory is handed off to retailers and restocked according to seasonal demands. 3. 8) Difference between using exact optimizing technique and heuristic to solve a problem is the precision
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This note was uploaded on 05/08/2011 for the course IEOR 153 taught by Professor Staff during the Spring '08 term at Berkeley.