From the course: Excel Supply Chain Analysis: Solving Transportation Problems
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Describe level of service constraints - Microsoft Excel Tutorial
From the course: Excel Supply Chain Analysis: Solving Transportation Problems
Describe level of service constraints
- [Instructor] So far in this course, we have looked at problems where we were only concerned about minimizing cost. In this chapter, we will solve a problem called a level of service problem. In a level of service problem, reliability and level of service matter. And in this case we will use a metric, such as distance to customer, as a proxy or substitute for a level of service. As before, our demand is given and it doesn't change, so it is deterministic. Distance and routing don't change and the goal is to find the lowest cost solution that meets both demand and level of service. The problem we'll look at once again deals with our wind farms, which are spread out across the US Midwest. And in addition to the wind farms, we have three distribution centers, Amarillo, Texas, Tulsa, Oklahoma, and Fort Worth, Texas. Our goals are to make sure that the distance between the distribution center and the customer is used as a…
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