Reference no: EM13247475

Established in Al-Khobar, Kingdom of Saudi Arabia, Logistics Solution Services (LSS) is another prime division of SAF Group of Companies. Its innovative management, sophisticated hardware, software and skilled manpower services has earned it a unique position in Saudi Arabia gaining a reputation for high quality standards in warehouse management and third party logistics. LSS is currently adding a new warehouse of more than 8,000 m² in Dammam second industrial city. Your job in this project is to optimize the performance of this warehouse. One agreed upon measurement is to minimize the total traveled distances that items go through in and out of the warehouse. The following is a proposed layout of the facility spanning 32 aisles on both sides giving a total of 64 available aisles for storage. Each aisle is composed of 9 compartments named from A to I. Loading is done on one end while unloading is done on the other, this would allow ease of implementing a FIFO system when required for some products with expiration dates. Each compartment is 7 m length, 5 m depth, and 3 m height totaling 105 m² in volume. Distance between aisle 1 and 2 is 4 m which is the same distance between aisle 2 and 3 and so forth. Aisle 1 is 15 m away from the loading and unloading area. Aisle 33 is symmetric to aisle 1 with respect to the forklift path.

Constraints:

• Once an item is dedicated a storage compartment then all of the items should be stored adjacently so workers would not get confused.
• Some items cannot be stored in second or third elevations due to weight restrictions.

The following data represents monthly movement of different items along with required number of compartments for storage.

No.	Name	Required	Movement	Weight restriction?
1	Qw134	21	12	N
2	Er412	15	45	N
3	Ty712	13	34	N
4	Rg966	17	62	N
5	Ds105	22	101	N
6	Vf331	19	75	Y
7	Xs655	12	18	Y
8	Za812	7	54	Y
9	Bh545	18	19	Y
10	Hj997	25	77	N
11	Hm512	32	54	N
12	Sc112	20	39	N
13	Qd422	31	72	N
14	Jy587	42	51	N
15	Vb612	16	81	Y
16	Cd222	14	120	Y
17	Op395	12	15	N
18	Ms563	28	71	N
19	Nm588	29	11	N
20	Zw101	11	29	N

Formulate the problem as a MILP and solve it to come up with the assignment that minimizes total item movement in meters.

Part2----Logistics

A logistics company wishes to expand by purchasing a number of new trucks of varying sizes and capabilities. The company has 5 Million Saudi Riyals for this project and is targeting three types of trucks, The Stake Body (SB), Heavy Semi Truck (HS) and Refrigerated Vans (RV). Demand for various products to be shipped are given on a daily basis and is assumed to continue through the year after shipping contracts have been signed. The following table contains the items with shipping rates and are given three colors namely green for items requiring the SB, yellow for HS items and red for RV items. Every truck driver can only make three trips a day maximum due to traffic regulations requiring sufficient rest. The company wishes to at least buy one type of truck to guarantee diversity and promising market share. What would be your suggestion to the company on the optimal number of each truck to purchase in order to maximize profit?

Truck Data:

Truck	SB	HS	RV
Purchase cost SR	199,000	265,000	312,000
Insurance cost SR	6,000	12,000	15,000
Registration cost SR	2,000	3,500	4,000
Maintenance cost SR	4,000	9,000	11,000

Demand Data:

Client	Daily trips	Rate SR/ trip	Client	Daily trips	Rate SR/ trip
Junly	8	1,200	Sams	6	1,500
MLK	14	950	Beck	8	1,100
Ual	8	1,300	Fly7	10	1,350
FLB	18	875	Port	20	700
e-home	14	900	Mark	16	980
SUzky	8	1,100	Slam	14	850
Clam	10	1,000	Hunt	10	1,150