1 2 3 4 5

Total 365 378 92 90 92

A 283 293 0 0 0
B 6 6 6 6 5
C 1 3 4 6 7
D 45 45 50 45 47
E 30 31 32 33 33

Factory
80 80 80 80 80
Production

A B C D E
Warehouse E
1 1 1 1 1
Flight
Warehouse E
4 4 2 2 1
Pick-Up
Warehouse E
8 8 4 4 2
Truck

Warehous
Factory
e
Warehous Inventory
Cost Inventory
eE Holding
Holding
Cost
Cost

Factory B
1 400 5 5
Flight
Factory B
5 50
Truck

Cater to Regions D and E from day 3 by - (a) Using flight for factory to wa
Option 1
560), (c) Warehouse to Region D by Pick-Up (total cost would be 560)
Region D would be served on alternate days only. As day 3 demand would
Issue
would reach day 6
Demand
Region D 0 0 0 45 0
met

Demand
0 0 32 33 33
Region E met

Warehouse
0 80 83 130 130
Level
Production
800 800 800 800 800
Cost
 Factory to
Warehouse
32000 32000 32000 32000 32000
Transport
Cost
Warehouse
to Region
0 0 11550 4950 12000
Transport
Cost
Warehouse
Inventory 0 400 415 650 650
Cost
Sales 0 0 19200 46800 19800
Cash Level 167200 134000 108435 116835 91185

Failed 1. So much inventory left; you should have stopped production

2. Selling price is 600 and transportation cost is 550 with production cost

3. The product is a commodity, it will remain in demand even when not c

Cater to Regions D and E from day 3 by - (a) Using flight for factory to wa
Option 2
560), (c) Warehouse to Region D by Pick-Up (total cost would be 560), (d)
Region D would be served on alternate days only. As day 3 demand would
Issue
would reach day 6
Demand
Region D 0 0 0 45 0
met

Demand
0 0 32 33 33
Region E met

Warehouse
0 80 83 130 130
Level
Production
800 800 800 800 800
Cost
Factory to
Warehouse
32000 32000 32000 32000 32000
Transport
Cost
Warehouse
to Region
0 0 11550 4950 12000
Transport
Cost
Warehouse
Inventory 0 400 415 650 650
Cost
Sales 0 0 19200 46800 19800
Cash Level 167200 134000 108435 116835 91185
 Failed 1. Selling price is 600 and transportation cost is 550 with production cost

2. The product is a commodity, it will remain in demand even when not c

Cater to Regions D and E from day 9 by - (a) Using truck for factory to wa
Option 3
210), (c) Warehouse to Region D by Flight (total cost would be 460)
Demand
Region D 0 0 0 0 0
met

Demand
0 0 0 0 0
Region E met

Warehouse
0 0 0 0 0
Level
Production
800 800 800 800 800
Cost
Factory to
Warehouse
0 0 12000 0 0
Transport
Cost
Warehouse
to Region
0 0 0 0 0
Transport
Cost
Warehouse
Inventory 0 0 0 0 0
Cost
Sales 0 0 0 0 0
Cash Level 199200 198400 185600 184800 184000

Failed 1. Why is factory operational beyond day 9?

2. Selling price is 600 and transportation cost to D is 450 with production

3. The product is a commodity, it will remain in demand even when not c

Cater to Regions D and E from day 9 by - (a) Using truck for factory to wa
Option 4
210), (c) Warehouse to Region D by Flight (total cost would be 460), (d) S
Demand
Region D 0 0 0 0 0
met

Demand
0 0 0 0 0
Region E met

Warehouse
0 0 0 0 0
Level
 Production
800 800 800 800 800
Cost
Factory to
Warehouse
0 0 12000 0 0
Transport
Cost
Warehouse
to Region
0 0 0 0 0
Transport
Cost
Warehouse
Inventory 0 0 0 0 0
Cost
Sales 0 0 0 0 0
Cash Level 199200 198400 185600 184800 184000

Failed 1. Selling price is 600 and transportation cost to D is 450 with production

2. The product is a commodity, it will remain in demand even when not c

Cater to Regions D and E from day 9 by - (a) Using truck for factory to wa
Option 5
210), (c) Warehouse to Region D by Pick-Up (total cost would be 210), (d)
Region D would be served on alternate days only. As day 9 demand would
Issue
would reach day 12
Demand
Region D 0 0 0 0 0
met

Demand
0 0 0 0 0
Region E met

Warehouse
0 0 0 0 0
Level
Production
800 800 800 800 800
Cost
Factory to
Warehouse
0 0 12000 0 0
Transport
Cost
Warehouse
to Region
0 0 0 0 0
Transport
Cost
Warehouse
Inventory 0 0 0 0 0
Cost
Sales 0 0 0 0 0
Cash Level 199200 198400 185600 184800 184000
 Failed 1. Why is factory in production after day 6?
2. Why are you sending product to Region D after day 14?

Cater to Regions D and E from day 9 by - (a) Using truck for factory to wa
Option 6
210), (c) Warehouse to Region D by Pick-Up (total cost would be 210), (d)
Region D would be served on alternate days only. As day 9 demand would
Issue
would reach day 12
Demand
Region D 0 0 0 0 0
met

Demand
0 0 0 0 0
Region E met

Warehouse
0 0 0 0 0
Level
Production
800 800 800 800 800
Cost
Factory to
Warehouse
0 0 12000 0 0
Transport
Cost
Warehouse
to Region
0 0 0 0 0
Transport
Cost
Warehouse
Inventory 0 0 0 0 0
Cost
Sales 0 0 0 0 0
Cash Level 199200 198400 185600 184800 184000

Failed 1. Try and optimize it further if you think so

2. Medium would require further thinking, such as whether or not to cons
3. Hard would require additional thinking of factory construction cost-ben
4. Tournament gives mammoth options of multiple warehouses and facto
 Easy
6 7 8 9 10 11 12
98 93 97 95 105 106 103
0 0 0 0 0 0 0
5 6 5 5 5 6 5
9 10 12 13 15 16 17
50 42 44 41 48 46 42
34 35 36 36 37 38 39

80 80 80 80 80 80 80

Cost

400

150

50

ing flight for factory to warehouse transfer from day 1, (b) Warehouse to Region E by Pick-Up (total cost wou
tal cost would be 560)
ly. As day 3 demand would reach region on day 4 and hence that would help day 4 demand. Similarly, day 5

47 0 42 0 41 0 42

34 35 36 36 37 38 39

176 179 223 226 269 269 310

800 800 800 800 800 800 800

 32000 32000 32000 32000 32000 32000 32000

5100 11550 5400 11550 5550 12000 5850

880 895 1115 1130 1345 1345 1550

48600 21000 46800 21600 46800 22800 48600

101005 76760 84245 60365 67470 44125 52525

pped production
s 550 with production cost at 10; cant you optimize transportation?

demand even when not catered to certain regions for a certain time. Try increasing efficiency than meeting

ing flight for factory to warehouse transfer from day 1, (b) Warehouse to Region E by Pick-Up (total cost wou
tal cost would be 560), (d)stop production on day 10
ly. As day 3 demand would reach region on day 4 and hence that would help day 4 demand. Similarly, day 5

47 0 42 0 41 0 42

34 35 36 36 37 38 39

176 179 223 226 269 269 230

800 800 800 800 800 0 0

32000 32000 32000 32000 32000 0 0

5100 11550 5400 11550 5550 12000 5850

880 895 1115 1130 1345 1345 1150

48600 21000 46800 21600 46800 22800 48600

101005 76760 84245 60365 67470 76925 118525
s 550 with production cost at 10; cant you optimize transportation?

demand even when not catered to certain regions for a certain time. Try increasing efficiency than meeting

ing truck for factory to warehouse transfer from day 3, (b) Warehouse to Region E by Pick-Up (total cost wou
l cost would be 460)

0 0 0 41 48 46 42

0 0 0 36 37 38 39

0 0 240 163 78 234 153

800 800 800 800 800 800 800

12000 0 0 12000 0 0 12000

0 0 0 21800 24750 24100 22650

0 0 1200 815 390 1170 765

0 0 0 46200 51000 50400 48600

171200 170400 168400 179185 204245 228575 240960

o D is 450 with production cost at 10; cant you optimize transportation?

demand even when not catered to certain regions for a certain time. Try increasing efficiency than meeting

ing truck for factory to warehouse transfer from day 3, (b) Warehouse to Region E by Pick-Up (total cost wou
l cost would be 460), (d) Stop production after day 9

0 0 0 41 48 46 42

0 0 0 36 37 38 39

0 0 240 163 78 234 153

 800 800 800 800 0 0 0

12000 0 0 12000 0 0 0

0 0 0 21800 24750 24100 22650

0 0 1200 815 390 1170 765

0 0 0 46200 51000 50400 48600

171200 170400 168400 179185 205045 230175 255360

o D is 450 with production cost at 10; cant you optimize transportation?

demand even when not catered to certain regions for a certain time. Try increasing efficiency than meeting

ing truck for factory to warehouse transfer from day 3, (b) Warehouse to Region E by Pick-Up (total cost wou
tal cost would be 210), (d) Stop production after day 9
ly. As day 9 demand would reach region on day 10 and hence that would help day 10 demand. Similarly, day

0 0 0 0 41 0 42

0 0 0 36 37 38 39

0 0 240 163 126 286 247

800 800 800 800 0 0 0

12000 0 0 12000 0 0 0

0 0 0 11550 5550 12000 5850

0 0 1200 815 630 1430 1235

0 0 0 21600 46800 22800 48600

171200 170400 168400 164835 205455 214825 256340
ter day 14?

ing truck for factory to warehouse transfer from day 3, (b) Warehouse to Region E by Pick-Up (total cost wou
tal cost would be 210), (d) Stop production after day 6, (e) Stop delivery to Region D after day 14
ly. As day 9 demand would reach region on day 10 and hence that would help day 10 demand. Similarly, day

0 0 0 0 41 0 42

0 0 0 36 37 38 39

0 0 240 163 126 286 247

800 0 0 0 0 0 0

12000 0 0 0 0 0 0

0 0 0 11550 5550 12000 5850

0 0 1200 815 630 1430 1235

0 0 0 21600 46800 22800 48600

171200 171200 170000 179235 219855 229225 270740

as whether or not to construct a warehouse in a particular region

tory construction cost-benefit
iple warehouses and factories, are you game?
 13 14 15
107 112 117
0 0 0
5 6 5
18 20 21
45 46 50
39 40 41

80 80 80

n E by Pick-Up (total cost would have been

y 4 demand. Similarly, day 5 demand

0 45 0 50

39 40 41

306 346 335

800 800 800

 32000 32000 32000

12600 6000 13650

1530 1730 1675

23400 51000 24600

28995 39465 15940

sing efficiency than meeting demand.

n E by Pick-Up (total cost would have been

y 4 demand. Similarly, day 5 demand

0 45 0 50

39 40 41

146 106 15

0 0 0

0 0 0

12600 6000 13650

730 530 75

23400 51000 24600

128595 173065 183940
sing efficiency than meeting demand.

n E by Pick-Up (total cost would have been

45 46 50

39 40 41

69 223 132

800 800 800

0 0 12000

23850 24400 26150

345 1115 660

50400 51600 54600

266365 291650 306640

sing efficiency than meeting demand.

n E by Pick-Up (total cost would have been

45 46 50

39 40 41

69 223 132
 0 0 0

0 0 0

23850 24400 26150

345 1115 660

50400 51600 54600

281565 307650 335440

sing efficiency than meeting demand.

n E by Pick-Up (total cost would have been

ay 10 demand. Similarly, day 11 demand

0 45 0 50

39 40 41

163 363 272

0 0 0

0 0 0

12600 6000 13650

815 1815 1360

23400 51000 24600

266325 309510 319100
n E by Pick-Up (total cost would have been
on D after day 14
ay 10 demand. Similarly, day 11 demand

0 45 0

39 40 41

163 123 82

0 0 0

0 0 0

12600 6000 6150

815 615 410

23400 51000 24600

280725 325110 343150