Question

Gregory Richards, Vice president of logistics at Pasture, a dairy company in Montana foothills, USA, is planning to adopt sustainability practices in his company. Greg believes that his company could significantly improve both inbound supply costs and environmental impact from transportation by investigating the possibility of using various modes of transportation. At its disposal, Pasture has a variety of intermodal combinations. Monthly demand is about 3,500 tons of raw materials. Woody is an environmental analyst and Hang is a transportation costs analyst. Both were assigned to analyze the different intermodal combinations and to come up with best solution Hang figured out the following information From the supplier base, raw materials can be transported by rail to the train station in transit area 1 (320 km) or the train station in transit area 2 (1160 km). By road, it is possible to reach the sea harbor of transit area 3 (330 km), or to the train station/inland harbor of transit area 1 (345 km), or even drive to Pasture directly (1197 km). From the sea harbor in transit area 3, a sea ship can travel to the sea harbor/rail station of transit area 2 (1064 km). An inland ship can travel from the inland harbor of transit area 1 to the inland harbor of transit area 4 (-RANDBETWEEN(900,1000)] km). The inland harbor of transit area 4 can also be reached by inland ship from the port oftransit area 2 ([-RANDBETWEEN(70,90)] km). Finally, Pasture can only be reached by truck, it takes 26 km to drive from the inland harbor of transit area 4 to Pasture, and 100 km from the sea harbor/rail station in transit area 2. Distribution costs are $1 per km/ton for a truck with a capacity of 40 tons. A sea ship from the port of transit area 3 to the port of transit area 2 costs $23.5/ton per trip with a capacity of 3,000 tons. An inland ship from the harbor of transit area 1 to the harbor of transit area 4 costs $13.75/ton per trip with a capacity of 1,000 tons. An inland ship from transit area 2 to transit area 4 costs $3.75/ton per trip with a capacity of 1,000 tons. Rail tariffs for a capacity of 800 tons from supplier base to transit area 2 is $25.4/ton. Rail tariffs for a capacity of 800 tons from supplier base to transit area 1 is $25.4/ton. Woody came up with the following information. The environmental impact of transportation can be represented by the following airborne emission categories: CO2 equivalents to represent greenhouse gas (GHG) emissions, NOx equivalents to represent nitrification, and SO2 equivalents to represent acidification. The following table gives the emission-equivalents per modality (per ton/km)

Emission factors for modalities CO2-eq (T/km, Modalit Truck Inland shi Sea shi Trains NOx-eq (T/km, SO2-e RANDBETWEEN(50.1,54.9 11.1 9.6 RANDBETWEEN(25,30 0.4200 0.3500 0.3000 0.4720 0.0016 0.22 0.19 0.036 Greg wondered which intermodal configuration would have the best sustainable performance for this physical supply network Questions 1. Which intermodal configurations are possible for transporting the raw materials from the supply base to Pasture? 2. Which intermodal configuration is the least expensive on a monthly basis? . Which intermodal configuration has the lowest GHG emissions (carbon foot print) on a monthly basis? 4. Which intermodal configuration would you suggest to be the most sustainable? Base your decision making on costs and the three environmental issues of greenhouse gas, nitrification, and acidification NOTE: Copy Randbetween formula to an excel sheet to get actual numbers and ther substitute with the actual numbers

this is an assignment for Logistics Management Course, you can use the rules for this course to find optimal solution. please solve as soon as you can because the deadline is after two days.

thanks

Answer 1

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