From the course: Excel Supply Chain Analysis: Solving Transportation Problems

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Challenge: Which distribution centers to open

Challenge: Which distribution centers to open - Microsoft Excel Tutorial

From the course: Excel Supply Chain Analysis: Solving Transportation Problems

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Challenge: Which distribution centers to open

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(upbeat music) - [Instructor] The first two practice scenarios that I presented in this chapter assumed that you used all of the resources available to meet capacity and demand. In this movie, I will introduce an open and close and fixed-cost problem where that is not the case. You might be able to turn some assets on and off. We'll continue with Ginny's Biscuits. And again, Ginny has expanded the capacity for its bakeries. There are still three, but now they can produce more trays of biscuits every day. So much so, in fact, that you might be able to use just two bakeries to meet demand. Because this is an open and close problem, we need to use linking constraints. Those use logic to ensure that we pay the cost to open any facility that we want to use, for example, a bakery or distribution center. And finally, keep in mind that the goal is to find the lowest cost solution to meet demand, except that we are adding…

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