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IE 271
Operations Analysis and Design
Homework 1
Due date March 3rd, 2013

The following is a project proposal from an automotive manufacturer located in Ankara. This manufacturer conducts its after-sales service processes through 32 authorized service stations spread all over Turkey. There is also a customer service department at the headquarters employing 4 technical auditors responsible for the 32 service stations. These 4 technical auditors visit the 32 service stations periodically and conduct auditing activities for both technical services and warranty parts. Technical auditors control warranty parts randomly and they evaluate whether the specified warranty procedure is implemented in a correct manner or not, they also control technical equipment used in the service stations. Each technical auditor is responsible for a set of service partners and each set constitutes a region. After each technical audit, the audited parts are collected by a third party logistics company. Of course, it is necessary to inform this third party company in advance about the timing of the visits as well as the required capacity of the truck assignment.

The company states that this problem can be handled considering the following two issues:

1) Assignment of service stations to four regions (self-formed regions not the geographical ones):
The business volume of After-Sales Services needs to be analyzed and each service station should be assigned to one of the 4 technical auditors while considering the balance of business volumes and auditors constraints.

2) Visits of the technical auditors to the service stations (route planning):
Service partners should be visited on a periodical basis according to the business volumes and some business constraints while minimizing the transportation costs.

The company urges that issues such as legal requirements, workforce availability, investment and operational costs and any special regional or other requirements

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