Management Engineering - Logistics Management

Full exam

EXAM 22/06/2022 (5/30) With respect to the base case, assume that RW2 is removed from the current network and that the overall demand seen by the RWs is equally split among RW1 and RW3 (the standard deviation of the demand seen by the regional WHs is the same and it is equal to 25 PLs). What would be the overall amount of SS in the system? - 114.9 PLs - 145.5 PLs - 83.3 PLs - 166.6 PLs EXERCISE 1 1. 64% 2. B: it is the only point in the No Cost Zone EXERCISE 2 Le = 2*(6/2 + (5-1)*6) = 54 m Tot time = 404.69 s 1. It doesn’t change: because with this allocation of the items, we don’t change the probability of the aisles to be visited. 2. It doesn’t change: exactly for the same reason (these changes affect the distance that you travel within the aisles) 3. EXERCISE 3 1. Sum of the SS: 145.5 PL. I cannot have the same value as before, and cannot be higher (because I have to cope with the variability of only one LT). 103.2 cannot be because it is the value of the SS minus the SS of RW3 and it cannot be, because I will have the stocks in the CW now. So the only solution possible is 105.5 PL. You are reducing the service level, because if you move the stocks in the CW, you have to cover only for the lead time of the CW. 2. The overall amount of CS in the system is The solution is 554.5 PL 3. 821 PL . If you double the time of the frequency of replenishment you are doubling the CS. 4. Tot amount of ITS = 589.4 PL . It is also the answer because ITS are not affected by T. They depend only by the flow and the transportation LT. 5. 114.9 PL 6. 610.5 PL EXERCISE 4 1) I should consider this tradeoff between these two costs. I should pick the target IFR that can minimize the costs. 2) If I have a high phc (high depreciation, obsolescence), the ICC becomes very high in the trade off. On the other hand we have the stock out costs and the service level. One point is the SOC unit. And the other point is the OFR. If you have a product that is always requested, you should guarantee its presence. The higher the class (A,B,C), the better is to have it not in stock out. 3) The pasta should be an item that should have a IFR. Instead for other products that are very specific, with a high value, we can reduce the IFR and reduce the inventory. EXERCISE 5 I should consider the trade off between the ICC and the transportation costs. I should choose according to the relative importance of the two costs. When the obsolescence is critical for example, or the product range is high, I will tend to have a lower number of WHs. But I should also consider the constrain of the service level. Mediamarket: the ICC is very significant, so it’s better to have a centralize inventories. The OCT is not so significant. Barilla: in that case you can have many WHs, because the transportation is more relevant.