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This project proposal outlines the challenges faced by three factories and their distribution centers (DCs) in servicing multiple cities. Each factory has limited capacity, while each DC has different capacity and inventory costs. Key issues include determining the optimal number of DCs to set up, managing inventory levels across cities, and minimizing total operational costs. To address these challenges, we propose utilizing heuristic algorithms and simulation methods to find effective solutions for inventory management and distribution logistics.
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SCM Term Project proposal Yao Yaxian
Problems Description City retailer Factory Costumer Distribution Center
Problems Description • Assume there are three factories, each factory has a fixed capacity. • There are several cities need the serviced by the distribute centers(DC), each DC has different capacity and inventory cost.
Problems Description • How many DCs should be set up? • Each city has their own costumers, so they must have an inventory level. • The city retailers order for goods from DCs at a different time, so each DC must has an inventory level. • Minimize the total cost.
To solve the problem, the following methods may be used: • Heuristics algorithm • Simulation
