LLSMS2033 1(8)

UCL/LSM/OIS/AGRELL-CHEVALIER 04.06.2018
Name: Noma:

LLSMS2033
EXAMEN 04.06.2018

Instructors: Prof. Per AGRELL UCL/LSM/OIS

Prof. Philippe CHEVALIER UCL/LSM/OIS

Result :
Question 1 2 Total
Score
Total 50 50 100

INSTRUCTIONS
1. Write your name on each submitted page.
2. Do not unstaple the exam paper.
3. Only answer one question per page.
4. Read all questions carefully. Explain any introduced assumptions.
5. Allowed material: open books, open notes. No computer,
smartphone or other editing or communication device are
allowed.
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UCL/LSM/OIS/AGRELL-CHEVALIER 04.06.2018
Name: Noma:

QUESTION 1 50 p

Suppose a police vehicle is assigned to patrol a 10km segment of commercial street. The incidents
for which this police vehicle might be called are uniformly distributed along this road. We have
seen in the course that by being stationed in the middle of the segment the expected distance to
an incident is minimized, but on the other hand there is no visibility for the people living along this
street (especially at the ends).
In order to try to combine both benefits, the police decided to alternate between staying for one
hour at the center of the road segment and then patrolling uniformly along the road during one
hour.

a) What will be the expected travel distance to a randomly occurring incident assuming
it is uniformly distributed along the road segment and in time?

b) What will be the distribution of the travel distance?

c) What would be the expected travel distance if this police vehicle does not “cover” a
single street, but rather a neighborhood with mostly perpendicular roads that
spreads over 25 square km. (assuming the same policy of staying half of the time at
the center of the neighborhood and patrolling uniformly across the entire
neighborhood the other half of the time)

Clearly structure and justify your answers, this will be taken into account.
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UCL/LSM/OIS/AGRELL-CHEVALIER 04.06.2018
Name: Noma:
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UCL/LSM/OIS/AGRELL-CHEVALIER 04.06.2018
Name: Noma:
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UCL/LSM/OIS/AGRELL-CHEVALIER 04.06.2018
Name: Noma:

QUESTION 2 50 p

A global supply chain consists of a set of manufacturing plants M, delivering final products to a set
of regional distribution centers (RDC) C for further delivery to final clients J. We consider a single
final product of technical contents with variable demand. In order to minimize transport costs
while maintaining a regular service to all RDC, all transports from the plants to the RDC are
planned to pass through a central distribution center CDC to be located somewhere.

Your task is to propose a model as to minimize the customer service cost while serving all
demand, selecting the location for the CDC among candidate sites k such that the total cost for
transport and warehousing is minimized.

The variable cost per unit at CDC location i is VCi in the local currency of i. The annual
trasnhipment capacity of CDC i is Wi [units]. The forecasted demand of client j is Hj [units] and
its standard deviation is sj units per year. The fixed cost of CDC at i is given as FCi [local currency].
The variable production cost per unit at plant m is VPm in the local currency of m. The annual
supply capacity of plant m is Um [units]. The fixed cost of regional distribution at w is given as FDw
[local currency]. The variable handling cost per unit at warehouse RDC w is VDw [local currency].
The transportation cost from plant m to CDC location i is denoted CT1mi per unit. The
transportation cost per unit from a CDC i to RDC k is CT2ik. The transportation cost per unit
from a RDC k to a client c is given as CT3kc. Direct transport from a plant to a RDC is prohibitable
expensive and not permitted.

The capital cost for the firm is h % per year. The safety stock policy is to guarantee 95% cycle
service level. There is only one product and the mean demand rate is assumed stationary and
constant. All safety stock is placed at the CDC.

Let the exchange rate to EUR for an installation x be Q(x).

d) Propose a strategic formulation as a MIP to determine the location of the CDC and
the assignment of all clients to RDCs, the selection of plants as to maximize total
profit, ignoring taxes. You can assume the the capacity of the system is sufficient to
satisfy all demand. Any CDC location or RDC warehouse can be opened or closed.
[30p]

e) Classify the type of model that you have conceived in (a). [5p]

f) Modify the problem in (a) for the case when a client with a demand at least equal to
L units per year can be delivered directly from a plant at a transportation cost of
CTDmc per unit. In this case, there is no safety stock carried at CDC for this client.
[15p]
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UCL/LSM/OIS/AGRELL-CHEVALIER 04.06.2018
Name: Noma:
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UCL/LSM/OIS/AGRELL-CHEVALIER 04.06.2018
Name: Noma:
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UCL/LSM/OIS/AGRELL-CHEVALIER 04.06.2018
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