Class Project zWork in groups of 4 or 5 zProject has 3 parts zPart 1 due October 18th. zPart 2 due November 6th. zPart 3 due November 29th

Resources zAssignment: yCourse Project 2001.doc zData yProject2001.xls zSoftware yYou can download a free student version of AMPL from: yYou can download a free student version of XPress-MP from: I will discuss AMPL in class.

The Case zWe will add more detail in subsequent phases of the project. Phase 1 deals with ocean container volumes. zSource the containers: How much do you purchase in each country?

zShip the containers to the US: ythrough the Port of Long Beach or ythe Port of Norfolk. yOcean shipping rates consist of xa fixed cost for each container plus xa charge based on the distance the container moves. xThis distance is the great arc distance xProject2001.xls includes a module with VB code for calculating this distance given the long. and lat. of the origin and destination xUse the average speed of the vessel to determine how long the voyage will take.

Ocean Shipping

Clear Customs yClear the good through customs: The goods are subject to ad valorem duties. The rate depends on the country of origin. The value of the goods is their first cost. We purchase the goods f.o.b. the port of origin so the ocean freight is not subject to the duty.

Inland Transport yTruck the goods to the DCs: For this phase, goods are transported over-the-road in the ocean containers to a DC where they are unloaded. xThe over-the-road distance from each port of entry to each DC is given. xEstimate the cost required to transport a container from a port to a DC as a fixed cost plus a cost per road mile. xThe time (in hours) required to transport the container is also provided. zNaturally we want to accomplish this at minimum total cost. Part of the challenge is to be sure you include all the relevant quantitative components of total cost (don't try to include qualitative aspects of cost or aspects whose value is highly subjective).

Inland Transport

Objective zMinimize total cost. zInclude all the relevant quantitative components of total cost zDon't try to include qualitative aspects of cost or aspects whose value is highly subjective.

Deliverables zA brief report describing to your solution to your management. yconcise, ycover all the relevant issues ymore important issues earlier

Deliverables Cont’d zYour model. ywell-organized ywell-documented. yA linear programming model. xA brief explanation of your model. components of total cost how you calculated each component. xYour data. Excel 97 workbook. values defined and units of measure identified.

Deliverables Contd zAn evaluation of each team member's contributions to the project.

Media zElectronic copies ed to zby 5pm October 18. zDo not turn in hard copies. zIf any of your documents carries a computer virus, your grade will reflect the lack of care.