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You just completed your PhD in Industrial Engineering, have job offers from six different universities, and are faced with the problem of choosing the right university to work for. You have collected the necessary data about each university, as given in Table 4.9.

Acting as the new PhD, use the following methods to determine the criteria weights and the ranking of the universities. [Notes: (i) You will be maximizing criteria 1, 3, 4, and 5 and minimizing criteria 2 and 6. (ii) Scale the salaries by dividing by $10,000.]

a. Rating method

b. Borda method, using pairwise comparison of criteria

Do you find any rank reversals?

You just completed your PhD in Industrial Engineering, have job offers from six different...

 
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Consider the data for six DMUs given in Table 4.10.

a. Draw the input possibility set using the H–R construction for an output of 15.

b. Repeat for an output of 8.

c. Repeat for an output of 5.

Using the same data as given in Exercise 4.20:

a. Scale the inputs by the output and apply the H–R construction.

b. Draw the input possibility set for an output of 10 [you can directly use the results from part (a)].

Consider the data for six DMUs given in Table 4.10. a. Draw the input possibility set using the H–R...

Consider the data for six DMUs given in Table 4.11.

a. Formulate and solve as a VRS input-based DEA model for DMU 4.

b. Formulate and solve as a VRS output-based DEA model for DMU 4.

c. Will these always be the same? Why or why not?

 
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A typical supply chain manager has to make the decisions listed below. Categorize each decision as strategic, tactical, or operational and briefly justify your choice.

a. Number of warehouses needed and where to locate them

b. Assignment of customer orders to inventory or production

c. Choosing vendors to supply critical raw materials

d. Selecting a transportation provider for shipments to customers

e. Given the factory capacity, determining the quarterly production schedule

f. Choosing to produce a part internally or to outsource that part

g. Setting inventory policies at a retail location

h. Choice of transportation mode for shipping

i. Reordering materials to build inventory

j. Allocating inventory to customer backorders

k. Creating the distribution plan to move finished goods inventory from warehouses to retail locations

 
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Discuss the similarities and differences between Lp metric and AHP for ranking suppliers.

2 (Adapted from Srinivasan 2010) Consider a supply chain network with three potential sites for warehouses and eight retailer regions. The fixed costs of locating warehouses at the three sites are given below:

Site 1: $100,000

Site 2: $80,000

Site 3: $110,000

The capacities of the three sites are 100,000, 80,000 and 125,000, respectively. The retailer demands are 20,000 for the first four retailers and 25,000 for the remaining.

The unit transportation costs ($) are given in Table 5.38.

a. Formulate a mixed integer linear program to determine the optimal location and distribution plan that will minimize the total cost. You must define your variables clearly, write out the constraints, explaining briefly the significance of each, and write the objective function. Assume that the retailers can receive supply from multiple sites. Solve using any optimization software. Write down the optimal solution.

b. Reformulate the optimization problem as a linear integer program, assuming dedicated warehouses, that is, each retailer has to be supplied by exactly one warehouse. Solve the integer programming model. What is the new optimal solution?

c. Compare the two optimal solutions and comment on their distribution plans.

 
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