In a supply chain cost minimization optimization model


In a supply chain cost minimization (optimization) model, aggregating customers into zones according to a grid network or by zip code will in general a) overestimate the total cost of transportation b) underestimate the total cost of transportation c) sometimes overestimate and other times underestimate the total cost of transportation d) not affect the true optimal solution e) require more computational effort than the model without the aggregation of customers.

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Operation Management: In a supply chain cost minimization optimization model
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