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Solution for Supply Chain Network Design: Applying Optimization and Analytics to the Global Supply Chain 1st Edition Chapter 13, Problem 2

by Michael Watson Sara Lewis Peter Cacioppi Jay Jayaraman
106 Solutions 14 Chapters 19693 Studied ISBN: 9780133017373 Supply Chain Management 5 (1)

Chapter 13, Problem 2 : 2. Open the file Aggregating Customers.xls found on...

2. Open the file Aggregating Customers.xls found on the book web site. This file contains a list of 10,000 raw ship-to points and some characteristics about these data points. How would you go about aggregating the customers? Go ahead and follow your strategy. How many customers do you end up with?

Step-By-Step Solution

2. This question is a bit open ended. There is no single correct answer. However, the general idea is to get the total customers groups down to around 100–400.

Some strategies that could work would be to aggregate by the leading three digits of the zip codes (496 of these) or by the leading two digits of the zip codes (94 of these).

From there, the ambitious students might realize that there are some customers with more than 50 deliveries a year that might be split out separately.

The idea here is that the students spend time thinking about how to group these shipments to create both an accurate model as well as one with a manageable number of customers to work with.

Of course, you can expand this to introduce errors into the data, include more shipments with different modes, or have them actually build a model with this data.

This could be a good introduction to Microsoft Access for dealing with large data sets (or Pivot tables).

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