A meat processing and distribution company has ailing logistics. Management seeks to rationalize production and shipping decisions, which must be made daily, to ensure optimal utilization of in-house capabilities as well as outsourcing opportunities. Based on the case information, a linear optimization model can be built to guide decision making.
The case aims to: • llustrate the use of optimization models to support efficient, timely decision making in a logistical system. Show the value added by such models in terms of increased net revenue. • Illustrate the use and managerial value of sensitivity analysis on optimized solutions. • Demonstrate the relationship between (1) systemwide optimization of short-term, operational decisions, and (2) long-term, strategic value creation.
- RD0305
- AR2005
- AR0405
- LOGISTICS
- FOOD PROCESSING
- TRANSPORTATION
- DECISION SUPPORT SYSTEMS
- OPTIMIZATION MODEL
- OPTIMISATION MODEL
- SENSITIVITY ANALYSIS
- OUTSOURCING
- SHADOW PRICES