Exam 2 ISE 754: Logistics Engineering solution

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Problem 1: 50 pts
Artilugio, LLC, ships two different raw materials via TL between its fabrication facility in
Amarillo, TX, and its assembly plant in Anderson, SC. Each unit of each material occupies 6 and
3 ft3
, weighs 12 and 96 lb, and costs $120 and $80 to fabricate, respectively. A 13-week rolling
horizon is used for planning transportation. Each material’s forecasted weekly demand is 64, 64,
56, 31, 166, 62, 53, 96, 126, 143, 39, 45, and 55 units and 125, 101, 40, 26, 89, 104, 87, 22, 57,
81, 297, 163, and 113 units, respectively. Currently, 77 and 100 units of each material,
respectively, are in storage at the Anderson plant, and the same amounts should be in storage at
the end of the planning period. Assuming that each material loses 20% and 10%, respectively, of
its value after 13 weeks in storage, any amount of each material can be fabricated and transported
each week, and both materials can be shipped on the same truck, determine the transportation plan
that minimizes total costs over the planning horizon and what those total costs will be.
2
Problem 2: 50 pts
Osborn, Inc., has a DC in Detroit, MI that supplies 45 customers each day with cases of different
products using tractor-trailers. Given tomorrow’s demand, determine the number of trucks
required to supply the customers and the route of each truck. Customer location, load density (in
lb/ft3
), and weight (in lb) of each load for each customer are in the spreadsheet
Exam2DataF29.xlsx. A load can be split between multiple trucks. The spreadsheet includes the
location of the depot (customer 1). Each identical truck must start and complete its route between
7 a.m. and 5 p.m., including travel and unloading time. Each truck requires 20 minutes for loading
at the depot. It can be loaded at the depot before 7 a.m., and this loading time should not be included
in the 10-hour total, but if the truck is used for more than a single route, the 20 minutes should be
included in the 10-hour total. Unloading at each customer takes five minutes for positioning the
truck and five minutes per ton of the load.