NorthwestCaseStudy_Writeup_JingJingWu_YusiSang_XuXin

As one of the northwests largest customers proposes

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Unformatted text preview: margin for each link, we set up the base model we used to generate the optimal solution. We recommend the company to adopt the new production and distribution plan as presented in Excel sheet: Question1 instead of its old solution to maximize its profit. As one of the Northwest’s largest customers proposes to expand the production in either Dallas or Los Angeles, we recommend the company to expand operations in the Los Angeles facilities based on our analysis using the Sensitivity Report and Excel Sheet: Question 6. However, we do not recommend the company to offer a cash- back as an incentive because the additional profit is not sufficient to offset the two million dollars cash- back. The following report presents a detailed analysis we generated for the Northwest Newsprint, Inc. Question1: Decision variables: (the no of tonnes of newsprints shipped from one specific mill to one specific city) As there are three mills and nine cities, we should expect there to be 27 variables. However, since there are no reliable shipping between Spruce to Seattle, Los Angeles, Vancouver and Calgary, we only have...
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This note was uploaded on 02/09/2014 for the course TO 301 taught by Professor Lauriemorgan during the Fall '13 term at University of Michigan.

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