Design The Logistics Network - Management Assignment Help

Assignment Task

For the following problem, design the logistics network (6 marks), select vendors and transportation channels (6 marks) and determine inventory policies (6 marks). Minimise cost of the system, while maintaining the required service level. 
Use all info available in the problem, and if necessary, make and state additional assumptions. However, making an assumption to bypass a piece of information available in the problem carries a penalty of 50 % of all subsequent answers. Modelling parts of the problem will be highly regarded; attempts to model the whole problem will attract bonus marks (up to 10 for a reasonable full model). 
Describe all stops in modelling/solving the problem. with notes on oonoralisation -possibilities and limitations. 
Great Island (GI) Is a piece of paradise and a popular tourist destination. 10 Million Inhabitants, concentrated In a square metro area, uniform density: 1000 people/km', linked to the continent by a causeway. 
The only drawback is the existence of a major pest - a species of naturally aggressive, wandering native spiders, the bite of which Is fatal If not treated following a standard medical protocol. Fortunately, an effective antivenin serum has been developed long ago. It Is 100% effective as long as it Is administered within 20 minutes of the bite, after which the treatment becomes useless. 
The scientists In GI work frantically to eradicate the pest with significant results. Until their research Is confirmed and deployed and the island Is declared pest-free (estimated - within 4 years), a new logistic system has to be created and Implemented urgently. A series of near misses lately risk to affect irreversibly the reputation of Great Island as a tourist destination 
Loss to GI economy by a death due to spider bite (which cannot be concealed) Is estimated to 100 Million MU (Monetary Units), largely due to tourists choosing alternative destinations. As a result, there should be 5 minutes of safety buffer time after reaching a patient and each patient should be within reach of at least 2 rescue teams, one of which will be despatched, with the other on call. 
Virtually all people In GI carry mobile transmission devices or are In contact with someone who possesses one. A team can be despatched from an Emergency Call Station (ECS) within 5 minutes of a bite and they can reach the patient using ambulance services at an average speed of 40 km/h, or by helicopter, at an average of 120 km/h (speed averaged with time to get into vehicle and from vehicle to patient, Including the time to administer the antivenin). 
The Incidence of bites (spread evenly over the territory) is on average one a day, with 99 false calls due to a harmless cousin of the pest spider. The protocol requires administering antivenin then asking questions. A dose of antivenin changes colour when not effective anymore. This Implies having at least 3 doses available for a call, with the remaining discarded after answering the call. 
Lead time: 
Air - Average speed (door to door equivalent): 2500 km/day Truck - Average speed (door to door equivalent): 1000 km/day 
Reputation - compounded quality measure - defined by useable doses out of the initial order during the shelf life, in standard keeping conditions (after the set time, serum is discarded). 
In GI. antivenin serum is kept in Central Storage Facilities - at least 4 facilities for redundancy purposes, each built at a cost of 0.8 Million MU, with a life span of 1 year (re-certification more expensive than new facility). Each facility has to carry inventory for the whole island, plus a safety stock of 10%. 
Compounded interest rate: 15% per year. Shelf life of antivenin: 50 days in storage, 10 days in ECS. Transportation from storage facility to ECS - 1000 MU per trip. 
Setting an ECS with ambulance facility costs 1 million MU, one with ambulance and helicopter - 3 Million MU. Cost of medical personnel on call - 100 MU/h with ambulance facility, 300 MU/h for one with ambulance and helicopter. ECS have 2 teams on call 24h/day. 

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