Dear Manager,
Preliminary Scheduling of the Logistics Services for the Coming Season
Introduction
This report will be focused on the preliminary scheduling of the logistics services for the coming season. The distribution plan will be scheduled by using a mathematical model. Further explanation and discussion will be included.
Background
According to the attached spreadsheet, as shown in the relevant data and information because of the increasing difficulty of the environment, such route from Anke to Gianluigi is very expensive and time-consuming; therefore the route is out of our consideration.
The demand in various customer zones has been changed. First of all, the forecasted demand in Heinz will be reduced by 20% which means the weekly demand of pallets will be dropped from 40 to 20. Also, the demand of pallets in Luca will be increased by 20%, from 55 to 66.
Apart from the original warehouses in Anke and Dino the two third-party warehouses in Eleanor and Florian, the current capacity will be cut and not be sufficient to handle the inventory for the winter 2012 due to the urban renewal program conducted by local government, such that the two third-party warehouses in Eleanor and Florian, are taken into consideration for warehouse relocation.
Mathematical Model
In the following mathematical formulation, some vital parameters are included.
As the total capacity of IMSE is 345 pallets which will is more than the demand of pallets from IMSE to Anke, Dino, Eleanor as well as Florian, therefore, all pallets will be distributed to those four warehouses. In this way, the amount of pallets will be restricted by these warehouses supply.
For the demand of six customer regions, Gianluigi, Heinz, Jorge, Konrad, Luca and Matteo, their pallets demand will be fulfilled by the four warehouses.
During the calculation, the amount of pallet is allocated by the combination of the four warehouses and six customer regions. The optimal solutions of