IE 430/591 Supply Chain Engineering
Assignment 3
November 05, 2014, Covering Chapters 6 and 8 in the Textbook
Due Date: November 15th, 2014
8 Points in Total
This Assignment can be done by a group of up to two students. Both students need
to submit the an
Criteria for Use of Gurobi as an Optimization tool:
The main idea behind use of Gurobi is that, it supports Linear Programming Model (LP), MixedInteger Programming Model (MLP), Quadratic Programming and few other programming models.
Main goal for the case
Q.1. What are key success factors in diamond retailing? How do Blue Nile, Zales and Tiffany
compare on those dimensions?
Answer:
1. Blue Nile, Zales and Tiffany differentiate themselves based on company structure. Blue Nile is
largest retailer of diamonds
Book Notes - Chapter 3
Outline
Introduction
Models: Indexes, Unit, Factor,
Parametric: Power Sizing, Learning and Improvement, Cost Estimating Relationship
Case Study 3-31, 32, 33 & Sec. 3.5, p. 94
Parametric Model
3-9, 3-27, 3-28 (Ex. 3-7, p.87), 3-35
In
Book Notes - Chapter 2
Outline
Definitions
Revenue(Demand)
Cost(Demand)
Profit(Demand)
Ch 1 In Class
2-13+RTD+Ex2-6
2-27
2-47
Ch 2 In Class (2-5 Case Study)
Definitions
Fixed Cost = Costs unrelated to activity level
Variable Cost = Costs related to activi
Book Notes - Chapter 1
Outline
Definition of Engineering Economy
7 Principles
Analysis of Engineering Economics with respect to Design
Details: Brainstorming and factors
Laundry mat example
Problems in class: 1-1, 4, 15. 16, 17, 19
Solver example
Definiti