Changes to case 2.

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pablo 2022-05-08 20:36:15 +02:00
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@ -7,17 +7,17 @@ manufacturing and supply chain organization of Beanie Limited in Europe and
reports directly to Beanie Limited's CEO. reports directly to Beanie Limited's CEO.
Given Charles role, he gets involved in larger, strategical and long-term Given Charles role, he gets involved in larger, strategical and long-term
decisions when we compare with Elisa. One of the hot topics that is currently decisions when we compare with Elisa's domain. One of the hot topics that is
in Charles mind is the next plan for coffee beans reception in European docks. currently in Charles mind is the next plan for coffee beans reception in
Charles' office has reached out to you to prepare a report to assist in this European docks. Charles' office has reached out to you to prepare a report to
highly important decision by using optimisation techniques. assist in this highly important decision by using optimisation techniques.
As you are probably aware, coffee beans are not grown in Europe. World As you are probably aware of, coffee beans are not grown in Europe. World
production is divided across South/Central America, Africa and South East Asia. production is divided across South/Central America, Africa and South East Asia.
Beanie Limited purchases all of its coffee beans from different providers in Beanie Limited purchases all of its coffee beans from different providers in
America, mainly in Brasil and Colombia (these two countries account for almost America, mainly in Brasil and Colombia (these two countries account for almost
40% of the world production). Beanie Limited procurement teams execute 40% of the world production). Beanie Limited procurement teams execute
purchases with local providers at hose locations and then the coffee beans are purchases with local providers at those locations and then the coffee beans are
shipped in container cargo ships to European docks. shipped in container cargo ships to European docks.
Docks are a natural bottleneck in supply chains. Dock capacity in europe is Docks are a natural bottleneck in supply chains. Dock capacity in europe is
@ -47,7 +47,7 @@ Europe:
- Valencia - Valencia
- Genoa - Genoa
In the upcoming months, Charles team must sign contracts with some of these In the upcoming months, Charles' team must sign contracts with some of these
docks to ensure incoming capacity for the coffee beans coming from America. docks to ensure incoming capacity for the coffee beans coming from America.
This means they will agree with the docks on the expected handled volumes and This means they will agree with the docks on the expected handled volumes and
thus they must decide with which docks they want to work and how much volume thus they must decide with which docks they want to work and how much volume
@ -75,6 +75,9 @@ costs are as low as possible.
- You need to use a Python notebook to solve all levels. A helper notebook is - You need to use a Python notebook to solve all levels. A helper notebook is
provided. Please attach a notebook that shows your provided. Please attach a notebook that shows your
solution/proposal/analysis. solution/proposal/analysis.
- For the areas of the report where you have built an optimization model,
please provide a formal definition of the problem in mathematical terms. This
sould include the target function, decision variables and constraints.
- Include your team number, names and student IDs in all your deliverables. - Include your team number, names and student IDs in all your deliverables.
## Data ## Data
@ -84,70 +87,106 @@ A few facts:
- Charles' team estimates that Beanie Limited will need to receive 1,500,000 - Charles' team estimates that Beanie Limited will need to receive 1,500,000
metric tons of coffee beans in European docks during next year. metric tons of coffee beans in European docks during next year.
- The category being negotiated is 40 feet containers. 40 feet containers have - The category being negotiated is 40 feet containers. 40 feet containers have
a a capacity of 66 cubic meters. a capacity of 66 cubic meters.
- One cubic meter of coffee beans weights approximately 450 kgrs. - One cubic meter of coffee beans weights approximately 450 kgrs.
Charles' team has shared with you a table with the prices proposed by the Charles' team has shared with you a table (prices_and_capacities.csv) with the
different docks for 40ft containers. You can also find the maximum capacity next year's prices proposed by the different docks for 40ft containers. You can
that the dock is willing to provide to Beanie Limited (the capacity is also find the maximum capacity that the dock is willing to provide to Beanie
described as a count of 40ft containers). Limited (the capacity is described as a count of 40ft containers).
## Notebook
A notebook with some helping code has been provided. The code contains examples
on how to use `pulp`, a python package for modeling and solving optimization
problems. You can use it to get familiar with how to solve linear, integer and
mixed programming problems.
## Levels ## Levels
Level 1 ### Level 1
Examine the data provided below and current proposals data. Do you think there Examine the data provided below and current proposals data. Do you think there
is a chance to reduce costs? Why? is a chance to reduce costs? Why? And will next year's total cost lower?
You can assume that last year, around 80% of Beanie Limited's containers You can assume that last year, around 80% of Beanie Limited's containers
entered through Rotterdam and the remaining 20% through Amsterdam. Total volume entered through Rotterdam and the remaining 20% through Amsterdam. Total volume
was around 34000 40ft containers. was around 24000 40ft containers. Although they don't have more granular
numbers at hand, Charles mentioned that they had a total expense of 13,700,00€
on docks fees.
Level 2 ### Level 2
With the price and capacity data provided for each dock, Charles would like you With the price and capacity data provided for each dock, Charles would like you
to find out what is the optimal distribution across the different options for to find out what is the optimal distribution across the different options for
next year. He is expecting you to provide the exact numbers, as well as the next year. He is expecting you to provide the exact numbers, as well as the
expected costs that would result from your proposal. expected costs that would result from your proposal.
Level 3 ### Level 3
As it tends to be in these projects, sometimes new information appears in the As it tends to be in these projects, sometimes new information appears in the
middle of the project. Charles' team has reached out to let you know that they middle of the project. Charles' team has reached out to let you know that they
have some additional details from the different ports. The following docks have have some additional details from the different ports.
a sign-up fee. This means that, if Beanie Limited wants to do any business with
them at all, they need to pay this fee. This fee is only paid once and is The following docks have a sign-up fee. This means that, if Beanie Limited
independent of the container volume that goes through the dock. wants to do any business with them at all, they need to pay this fee. This fee
is only paid once and is independent of the container volume that goes through
the dock.
- Algeciras: 800,000€ - Algeciras: 800,000€
- Marseille: 500,000€ - Marseille: 500,000€
- Antwerp: 1,000,000€ - Antwerp: 1,000,000€
Also, after presenting your initial results from level 2, Charles is very happy
with your work, although there is something bothering him. Even though your
proposal sounds reasonable, he is concerned that splitting the operations
between too many docks might make land logistics operations too complex and end
up causing higher costs in their truck transportation that cancel the potential
savings that could be obtained in docks operations.
Charles doesn't have numbers currently, so there is no way to tackle this
properly in an empirical way. To have the necessary information to think about
this in the future, he would like you to repeat your analysis with a new
condition in place: to only use a maximum of 3 docks in your proposal. Charles
wants to know what would be the optimal decision while restricting the used
docks to that number.
Charles wants you to reassess the situation with the new data and provide the Charles wants you to reassess the situation with the new data and provide the
adequate solution with the new options. He also would like to understand how adequate solution with the new options. He also would like to understand how
these changes impact the solution you provided for level 2 and the overall these changes impact the solution you provided for level 2 and the overall
results for Beanie Limited. results for Beanie Limited.
Level 4 ### Level 4
After presenting your results from level 3, Charles is very happy with your Now that it seemed you finally had a proper proposal in place, Charles is
work, although there is something bothering him. Even though your proposal calling again with more concerns and asking you to go the extra mile with a
sounds reasonable, he is concerned that splitting the operations between too final assessment.
many docks might make European land logistics operations too complex and end up
causing higher costs in their truck transportation that cancel the potential
savings that cana be obtained in docks operations.
Charles doesn't have numbers currently, so there is no way to tackle this Apparently, some rumours have reached Charles ears. It seems that some new
properly. To have the necessary information to think about this in the future, regulations in Spain might affect taxes related to dock activities. Charles
he would like you to repeat your analysis with a new condition in place: to believes this could have an impact on the prices in Valencia and Algeciras,
only use a maximum of 3 docks in your proposal. Charles wants to know what putting pressure on them to increase their prices because additional taxes
would be the optimal decision while restricting the used docks to that number. would increase their own costs. The issue is: Charles doesn't know for sure
what will happen. His expert opinion is that the following is possible:
Finally, to spice things up, one of the analysts in Charles' team also calls - For Valencia, Charles thinks the price can end up somewhere between today's
you to inform that the management from the Rotterdam docks has warned Beanie price (310€/40ft) and 390€/40ft. He says the probability of any price is in
Limited that they have a new minimum volume policy in place. They will only that range is equal.
make business with Beanie Limited if they commit to handle, at least, 30000 - For Algeciras, Charles thinks the price can end up somewhere between today's
thousand containers through Rotterdam. price (280€/40ft) and 330€/40ft. Again, he says the probability of any price
is in that range is equal.
Charles heard you did a great job by using simulation techniques with Elisa in
your previous project. Charles' can't request you to do any simulation work as
part of the current engagement, because that would be out of the scoped that
was agreed upon. But nevertheless, he would appreciate if you could explain to
him how would you use simulation to make the decision with these new
uncertainty in place. What would be your methodology? What kind of results
could you provide to him?
With that information, he might decide to spend some more money with Simiupf to
pursue that stream of work. And that would definetely make your bosses very
happy!