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-------------------------------------------------------------Lab Sample: The MetalWorks Corporation

March 2002-------------------------------------------------------------

(c) Copyright LogicTools, Inc. 2002

Open LogicNet Click on the LogicNet icon

Select No to answer the question: Do you want to re -license the application?Go to File/Open Project and click on the project file in directory C:\ProgramFiles\LogicTools \LN_EXAMPLES\Metalworks.

Data Data for Plants

Data/Sites/Plants Data for existing and potential Warehouses

Data/Sites/Warehouses Data for customer

Data/Sites/Customers Data for Production Cost and Capacities at each Plant

Data/Sites/Plants Select Production Information Product Information

Data/Products Possible Warehouse sizes

Data/Sites/Warehouses Select S izes Customer Demand

Data/Sites/Customers Select Demand Updating the Demand file: The demand in the system is always year 2000 demand. To update the

demand file and create demand for another year, say 2001, use the following steps: click onData/Import/Demand and open the file Future_Demand_Data.xls (which is in directory C:\ProgramFiles\LogicTools \LN_Examples\Metalworks). Click on Demand box and choose Demand01. Hit Next andFinish and the demand data is updated to the demand of year 2001.

Carrier InformationData/Transportation/CarriersNote : The Transportation modes used by MetalWorks Corporation are1. Rail-Midwest: You can view the cost in the Per Mile/Fixed form. For instance, the cost is 1.3

$/mile and the capacity is 8000 cubic fit2. Private Fleet and ABS Fleet Co: You can view the cost in the Per Mile/Fixed form3. Commercial TL: You can view the cost and capacities in the Zone to Zone form by clicking on

Zone Cost 4. XYZ Trucking : You can view the cost and capacities in the Distance form by clicking on

Distance Cost. The cost here is in $ per miles and is a function of the distance traveled. Forinstance, if the distance is less than 500 miles the cost is $1.75 while if the distance is greater than500 but no more than 1000 miles the cost per mile is $1.5.

Edit Data Activate/Deactivate the Manufacturing facility in Juarez:

Data/Sites/Plants Click on the line for Juarez and click on the Active dial box. If you want to set an existing warehouse of size 600,000 sq. ft. in Albany:

Data/Sites/Warehouses Click on the line for Albany: Change sta tus from potential to Pre-existing, select size of 600,000 in the Size form.

To see the distance constraints:Data/Transportation/Lanes Click on Warehouse to Customer form scroll to the right and see the

Max distance field

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Optimize the systemAfter you have set up all your input data, go to Optimize/Parameters. Do not change the Default Road Distance Factor, keep it at 1.18. Limit the number of DC to between 3 and 4.

Optimization Gap: Use the default 0.5, or you can set it yourself. Number of solutions: keeps it as 2.

Click on Run to optimize

View Solution 1 Solution 1 will be the default after the solve run. Right click on Solution 1 and hit display solution Output Summary

Solution/View Report/Summary The output summary provides information about total costs, warehouse costs, warehouse data such as

size, plant data, etc.View Solution 2 To view the second solution, click on Solution 2, then Right and hit select solution and again Right

click on Solution 2 and hit display solution

Save the fileThe LogicNet version you are using is a demo version that does not allow you to save any projectinformation. If you want to save any file, you need to export it to Excel and save it using Excel. Forexample, if you want to save the cost summary of a specific run: Go to Solutions/View Reports/Summaryand in the Cost Summary report hit Expor t The system will save the file as a .xls file in whatever directoryyou specify.

Log Out To logout, select File/Exit and OK. Answer the question Do you want to re-license the application

now? by selecting NO.

Some issues You need to make decisions about where, when and how many warehouses to build, whether to open

the manufacture facility at Juarez. You are at the beginning of 2000 and your planing horizon is 4 years, i.e., 2000, 2001, 2002 and 2003.

Even though you optimize each year separately, you need to make a decision based on the entire planning horizon.

A warehouse that you decide to establish in a specific location at a given year is going to stay withMetalWorks until the end of the planning horizon. That is, it is not possible, for instance, to open awarehouse in 2001 and close it in 2003.

When you optimize for every year, do not forget to edit the data (customer demand, existingwarehouses, manufacture facility) so that they reflect the scenario in that year.

Please ignore the statement In order to install the new equipment, all steel cabinet production at theIowa plant must be shut down for one month at the bottom of page 2 and Installing this equipmentwill require a shutdown of safety box production capacity at the plant for two months at the top of

page 3. That is, assume that there is no need to shutdown production when increasing productioncapacity.