Think of the logistics challenges Amazon UK is facing: they are sourcing from thousands of bookstores and through a few distributions centres they are delivering in millions of customers. Think now of the alternative setup that they just started implementing a few months ago where they have added another layer in this transportations network in-between the end customers and the distribution centres: that of collection points in local shops. (a) Give a generic formulation of a logistics cost minimisation LP problem for Amazon UK before the layer with the collection points was added, (b) give a generic formulation of a logistics cost minimisation LP problem for Amazon UK with the collection points, (c) expand the latter so as to allow for transhipments in between the distributions centres and provide both a

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter14: Marketing Channels And Supply Chain Management
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Think of the logistics challenges Amazon UK is facing: they are sourcing from thousands of
bookstores and through a few distributions centres they are delivering in millions of customers.
Think now of the alternative setup that they just started implementing a few months ago where they
have added another layer in this transportations network in-between the end customers and the
distribution centres: that of collection points in local shops.
(a) Give a generic formulation of a logistics cost minimisation LP problem for Amazon UK before
the layer with the collection points was added, (b) give a generic formulation of a logistics
cost minimisation LP problem for Amazon UK with the collection points, (c) expand the latter
so as to allow for transhipments in between the distributions centres and provide both a
graphical network and an LP formulation, (d) Why did they decide to go for the introduction
of collection points and under what conditions is this a sensible move?
Transcribed Image Text:Think of the logistics challenges Amazon UK is facing: they are sourcing from thousands of bookstores and through a few distributions centres they are delivering in millions of customers. Think now of the alternative setup that they just started implementing a few months ago where they have added another layer in this transportations network in-between the end customers and the distribution centres: that of collection points in local shops. (a) Give a generic formulation of a logistics cost minimisation LP problem for Amazon UK before the layer with the collection points was added, (b) give a generic formulation of a logistics cost minimisation LP problem for Amazon UK with the collection points, (c) expand the latter so as to allow for transhipments in between the distributions centres and provide both a graphical network and an LP formulation, (d) Why did they decide to go for the introduction of collection points and under what conditions is this a sensible move?
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