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

by Michael Watson Sara Lewis Peter Cacioppi Jay Jayaraman
106 Solutions 14 Chapters 18732 Studied ISBN: 9780133017373 Supply Chain Management 5 (1)

Chapter 2, Problem 1 : 1. Given the analysis presented in this chapter,...

1. Given the analysis presented in this chapter, where would you put the capital of Logistica and why? What factors went into your decision?

Step-By-Step Solution

1. This is a bit of an open-ended question and could be good for class discussion. But it is not that difficultthe students should use the statistics from the Logistica spreadsheet (see http://networkdesignbook.com/academic-use/chapter-2-material/). Better answers will pick a city that has a low average distance and a high percentage of citizens within 100, 200, and 300 miles of the capital. Students will have different ways of weighting these factors, so you may see different answers and subtle trade-offs:

City 11 minimizes Weighted Average Distance at 371.

Cities 4 and 10 maximize the percent within 100 miles at 24%. City 7 is not far behind at 23%.

City 10 maximizes the percent within 200 miles at 49%. City 4 is not far behind at 48%.

Cities 7, 10, and 11 maximize the percent within 300 miles at 58%. Cities 3 and 4 are not far behind at 56%, while City 1 is at 54%.

A good answer or a good class discussion should talk about these quantitative factors as well as touch on the quality of the infrastructure of the cities, maybe future growth rates, and other factors (see the question below).

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