Supply Chain Modelling and Design Assessment 3

Case 1

Recycling is an important and complex activity in City W. To enable timely operations, the city is divided into 10 sectors and recycling operations are commenced simultaneously in each sector. The recyclable garbage is collected from kerbside bins, loaded into trucks, and transported to recycling sites. Each site can accommodate different amounts of recyclable garbage because of its available land size at the facility. The annual capacities for five recycling sites are given in the table below (in kilotonnes):

 

			Recycling Site
	1	2	3	4	5
Capacity	50	32	60	35	40

 

Each recycling site is installed with facilities that have different recycling efficiencies which are summarised in the table below (in percentages):

 

			Recycling Site
	1	2	3	4	5
Efficiency	32%	38%	35%	43%	60%

 

The cost of collecting and transporting recyclable garbage primarily depends on the distance between the sectors and the recycling sites. The following table summarises the distances between each sector and each recycling site (in kilometres):

 

			Recycling Site
Sector	1	2	3	4	5
1	33.0	13.6	47.6	71.9	90.4
2	23.3	20.4	80.7	88.5	85.5
3	13.6	28.2	36.0	91.4	83.6
4	25.3	35.0	43.7	79.7	86.5
5	14.6	30.1	20.4	76.8	85.5
6	40.8	47.6	63.2	74.8	59.3
7	46.7	60.3	96.2	60.3	55.4
8	52.5	58.3	50.5	73.9	47.6
9	30.1	39.9	64.2	72.9	70.0
10	31.1	63.2	69.0	58.3	80.7

 

Using historical data, the city estimates the annual volume of the recyclable garbage for each sector in the coming year shown in the table below (in kilotonnes):

 

Estimated Recyclable Garbage
1	2	3	4	5	6	7	8	9	10
10	16	25	31	23	18	30	14	19	26

 

It will cost approximately $65.90 to move one kilotonne of recyclable garbage for one kilometre. The management would like you to design a solution that simultaneously maximises the amount of recycled garbage and minimises the transportation cost. They consider maximising the amount of recycled garbage to be two times as important as minimising the transportation cost.

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