Global Supply Chain Management — Individual Assignment #3 Paula Costa, 1178
Pasta & Basta Case
Before starting with the analysis of this case, it is important to underline that all the answers are interconnected and for instance, while I answer the first question, I am using extremely important ideas that should be considered for question 2 as well (or vice-versa). However, I opt to explain it first-hand, so ideas sound fluent and organized. Question 1 The Weighted Center of Gravity Method is a mathematical technique used to find the location of a distribution center that will minimize distribution costs. In this case, it will help us find the optimal location for the warehouse, taking in consideration the 4 restaurants located around it. The method takes into account the location of existing facilities (that is, the restaurants), the volume of goods shipped to those restaurants (provided by the question) and finally, the distance between them. The aim of this method is to provide the lowest transportation costs by finding the best location for the warehouse. Some very important assumptions must be made in order to proceed: • • • Inbound and outbound transportation costs are equal; Tools are not considered; Given the distances between the restaurants, we will find the shortest possible route that visits each location exactly once and returns back to the origin (meaning, the warehouse). Thus, we will be using the Travelling Salesman Problem (TSP); Each restaurant is represented by the coordinates of a random street in each of the locations (Almada, Pinhal Novo, Charneca da Caparica e Quinta do Conde). I picked them on Google Maps.
The first step in the Weighted Center of Gravity Method is to place the restaurants on a coordinate system. The scale in the coordinate system is arbitrary (does not mean km for instance), but the relative distances are correctly represented. I assured relative distances to be correctly represented since I carefully took the...