(All Chapters)
CHAPTER 1 - Introduction to Facility Design
1.4 Solutions
1. This is an open-ended question and could be given as a mini-project for students.
2. Design problems are those that have a longer time span, typically three to five years or more,
whereas planning problems have a shorter time span. Students will come up with a long list
of design and planning problems and Figure 1.1 should be of some help. Although it is
desirable to solve the two problems simultaneously, so that a solution satisfies design and
operational performance measures, doing so makes the problem intractable and hard to solve.
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, CHAPTER 2 – Supply Chain Design
2.6 Solutions
1. Students are encouraged to consult business publications and trade magazines to identify the
supply chain design and operational trends witnessed in the past 15 years.
2. Once again, a consultation of business publications and trade magazines will help the students
identify companies in the disruptive innovation space.
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, CHAPTER 3 – Logistics and Location Models
3.11 Solutions
1. As indicated in Section 3.1 as well as Chapter 1, facility location must be addressed in the
very early stages of facility design – as soon as the products to be produced and markets to be
served have been identified.
2. Facility location is a sub-problem in logistics management. As defined in Section 3.1, logistics
management covers not only location, allocation, but also the distribution methods, costs, and
a number of other logistics related factors.
3. It should serve the needs of the company, minimize costs, must mesh well with the existing
network of supply chain of suppliers, plants and customers, etc. This is a good question for
in-class discussion.
4. See Section 3.3.
5. See Section 3.3.
6. See Table 3.1.
7. This is an interesting project for undergraduate students that could be supplemented with in-
class discussion.
8. Based on the calculations done in the table below, we find that site #6 is the best location
based on the subjective factors.
Location Factors
0.15 0.2 0.4 0.25
Site Number 1 2 3 4 Score
1 90 40 80 70 71.00
2 100 30 80 50 65.50
3 50 80 85 60 72.50
4 60 90 60 75 69.75
5 90 30 65 80 65.50
6 90 30 85 85 74.75
9. Based on the calculations done in the table below, we find that site #3 is the best location based
on the subjective factors.
Location Factors
0.4 0.2 0.3 0.1
Site Number 1 2 3 4 Score
1 55 20 10 50 34
2 20 75 80 50 52
3 90 15 85 100 74.5
4 80 95 20 25 59.5
5 30 90 25 25 40
Explanation:
Site 1: 0.4(55) +0.2(20) +0.3(10) +0.1(10) = 34
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, Site 2: 0.4(20) +0.2(75) +0.3(80) +0.1(50) = 52
Site 3: 0.4(90) +0.2(15) +0.3(85) +0.1(100) = 74.5
Site 4: 0.4(80) +0.2(95) +0.3(20) +0.1(25) = 59.5
Site 5: 0.4(30) +0.2(90) +0.3(25) +0.1(25) = 40
10. Based on the calculations done in the table below, we find that site #6 is the best location based
on the subjective factors.
Location Factors
0.4 0.2 0.3 0.1
Site Number 1 2 3 4 Score
1 90 40 80 70 75
2 100 30 80 50 75
3 50 80 85 60 67.5
4 60 90 60 75 67.5
5 90 30 65 80 69.5
6 90 30 85 85 76
Explanation:
Site 1: 0.4(90) +0.2(40) +0.3(80) +0.1(70) = 75
Site 2: 0.4(100) +0.2(30) +0.3(80) +0.1(50) =75
Site 3: 0.4(50) +0.2(80) +0.3(85) +0.1(60) = 67.5
Site 4: 0.4(60) +0.2(90) +0.3(60) +0.1(75) = 67.5
Site 5: 0.4(90) +0.2(30) +0.3(65) +0.1(80) = 69.5
Site 6: 0.4(90) +0.2(30) +0.3(85) +0.1(85) = 76
11. Based on the calculations done in the table below, we find that site #3 is the best location based
on the subjective factors.
Location Factors
0.15 0.2 0.4 0.25
Site Number 1 2 3 4 Score
1 55 20 10 50 34
2 20 75 80 50 52
3 90 15 85 100 74.5
4 80 95 20 25 59.5
5 30 90 25 25 40
Explanation:
Site 1: 0.15(55) +0.2(20) +0.4(10) +0.25(10) = 18.75
Site 2: 0.15(20) +0.2(75) +0.4(80) +0.25(50) = 62.5
Site 3: 0.15(90) +0.2(15) +0.4(85) +0.25(100) = 75.5
Site 4: 0.15(80) +0.2(95) +0.4(20) +0.25(25) = 46.75
Site 5: 0.15(30) +0.2(90) +0.4(25) +0.25(25) = 38.75
12. We leave it as an exercise for the student to verify the results in Example 3.2 using the TSA.
13. We leave it as an exercise for the student to verify the results in Example 3.3 using a
transportation problem.
14. It is a trivial exercise for the student to verify the results in Example 3.3 using a transportation
problem.
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