From the course: Excel Supply Chain Analysis: Solving Transportation Problems

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Challenge: Level of service constraints problem

Challenge: Level of service constraints problem - Microsoft Excel Tutorial

From the course: Excel Supply Chain Analysis: Solving Transportation Problems

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Challenge: Level of service constraints problem

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(upbeat music) - [Instructor] This is the last of the practice scenarios that I will provide in this chapter, and it deals with a level of service constraint problem. We're still working with Ginny's Biscuits, but now we are looking at level of service. Ginny's Biscuits are best when they're fresh, so we've set a maximum transport distance, such as 11 miles. So any customer that is within 11 miles of a bakery, we assume that the biscuits will be fresh or at the desired level of freshness when they arrive. 12 miles or more, maybe not so much. Our goal is to have at least 80% of biscuits travel 11 miles or less. The way we enter that value into the spreadsheet, you can change your assumption about the freshness distance. And our goal is twofold. We need to find the lowest cost solution to meet both demand and our level of service goal. As before, we have a two level structure. So we're shipping directly from a bakery to…

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