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    Case Study Optimization

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    eeshachtr
    This document discusses a transportation case study involving locker delivery optimization. It contains the following key points: 1) A linear optimization model was created to minimize shipment costs by determining the best courier for each zip code for standard and premium services. The model aims to find the optimal solution while meeting total demand constraints. 2) Parameters like revenue, rental costs, delivery times, and location hours were considered to evaluate options based on consumer convenience, ease of collection, and profitability. 3) The two most important negative factors affecting adoption rates were identified as variable locker opening times across days of the week, and higher customer returns for lockers with low adoption rates.

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    Case Study Optimization

    Uploaded by

    eeshachtr
    65 views3 pages
    This document discusses a transportation case study involving locker delivery optimization. It contains the following key points: 1) A linear optimization model was created to minimize shipment costs by determining the best courier for each zip code for standard and premium services. The model aims to find the optimal solution while meeting total demand constraints. 2) Parameters like revenue, rental costs, delivery times, and location hours were considered to evaluate options based on consumer convenience, ease of collection, and profitability. 3) The two most important negative factors affecting adoption rates were identified as variable locker opening times across days of the week, and higher customer returns for lockers with low adoption rates.

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    linear model

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    Case study optimization

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    This document discusses a transportation case study involving locker delivery optimization. It contains the following key points: 1) A linear optimization model was created to minimize shipment costs by determining the best courier for each zip code for standard and premium services. The model aims to find the optimal solution while meeting total demand constraints. 2) Parameters like revenue, rental costs, delivery times, and location hours were considered to evaluate options based on consumer convenience, ease of collection, and profitability. 3) The two most important negative factors affecting adoption rates were identified as variable locker opening times across days of the week, and higher customer returns for lockers with low adoption rates.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    65 views3 pages

    Case Study Optimization

    Uploaded by

    eeshachtr
    This document discusses a transportation case study involving locker delivery optimization. It contains the following key points: 1) A linear optimization model was created to minimize shipment costs by determining the best courier for each zip code for standard and premium services. The model aims to find the optimal solution while meeting total demand constraints. 2) Parameters like revenue, rental costs, delivery times, and location hours were considered to evaluate options based on consumer convenience, ease of collection, and profitability. 3) The two most important negative factors affecting adoption rates were identified as variable locker opening times across days of the week, and higher customer returns for lockers with low adoption rates.

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    © All Rights Reserved
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    of 3

    Transportation Case Abc Locker Delivery: Experience Convenience

    Question 1:
    This question was solved using the techniques of linear optimization. This is a transportation
    Problem.
    The linear optimization model was created to minimize the costs shipment.
    The answers are as shown as in the table below. The optimization model has been explained
    following the answer. Detailed calculations are enclosed in appendix 1.

    Carrier
    Base
    Ease
    Base
    Case
    Dase
    Base
    Base
    Base
    Chase
    Dase

    Postal
    Code
    1xx
    2xx
    3xx
    4xx
    5xx
    1xx
    2xx
    3xx
    4xx
    5xx

    Shipment
    Option
    Standard
    Standard
    Standard
    Standard
    Standard
    Premium
    Premium
    Premium
    Premium
    Premium

    No.
    Packages
    875
    764
    803
    789
    769
    775
    789
    803
    827
    806

    of Total
    Cost
    67074.88
    48439.89
    104249.5
    53358.49
    54582.08
    96485.18
    113329.6
    152910.5
    123538.9
    123293

    Linear Optimization Model


    Objective :
    To find out the best courier for each zip code ( split by standard and premium service) keeping the total
    costs of shipment minimum.
    Constraint :
    Total demand at each of the Pin Code.

    Team Kainomoto/Members: Eesha Chaturvedi, Mohit Monga, Ranjiv Ravi


    Indian School of Business

    Page 1

    Question 2:
    Parameter
    Revenue
    Rental Cost
    Ship to Deliver
    Location hours
    Ship Charge

    Rank
    1
    2
    3
    4
    5

    The Parameters are chosen considering consumer convenience, ease of collection, and
    profitability to Abc.

    Revenue: as the costs will have to be such that the operations are profitable.
    Rental Cost, Ship Charge: Ensures the most cost effective places are selected so that the
    savings can be passed on to the customer. The key to providing a low price product is to
    work on low cost structures.
    Ship to deliver: Ensures the consumer gets the product on time and concessions are
    minimized.
    Location hours: ensures the customers can collect at a time most convenient to them.

    Question 3:
    Two most important factors affecting the adoption rate negatively are mentioned below. The
    detailed analysis supporting these is enclosed in appendix 2 under the tab Final analysis.
    1) The variability of the locker opening times across the week: The lockers that were open at
    different times at different days in the week showed a much greater percentage of less than
    1% and between 1-5% adoption, as indicated in Figure 1 below. This shows that lockers that
    operate 24 hours a day, and the lockers that operate on fixed times everyday of the week
    seem to be doing better.

    Team Kainomoto/Members: Eesha Chaturvedi, Mohit Monga, Ranjiv Ravi


    Indian School of Business

    Page 2

    2) Customer returns: The lockers where the adoption was less than 1% and between 1-5%
    showed the maximum customer returns. The numbers are as shown in the table below.

    Team Kainomoto/Members: Eesha Chaturvedi, Mohit Monga, Ranjiv Ravi


    Indian School of Business

    Page 3

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