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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:\Program
Files\LogicTools \LN_EXAMPLES\Metalworks.

Data for Plants
Data for existing and potential Warehouses
Data for customer
Data for Production Cost and Capacities at each Plant
Data/Sites/Plants Select Production Information
Product Information
Possible Warehouse sizes
Data/Sites/Warehouses Select Sizes
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 on
Data/Import/Demand and open the file Future_Demand_Data.xls (which is in directory C:\Program
Files\LogicTools \LN_Examples\Metalworks). Click on Demand box and choose Demand01. Hit Next and
Finish and the demand data is updated to the demand of year 2001.

Carrier Information
Note: The Transportation modes used by MetalWorks Corporation are
1. 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 fit
2. Private Fleet and ABS Fleet Co: You can view the cost in the Per Mile/Fixed form
3. 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. For
instance, if the distance is less than 500 miles the cost is $1.75 while if the distance is greater than
500 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 status 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

Optimize the system
After 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 file
The LogicNet version you are using is a demo version that does not allow you to save any project
information. If you want to save any file, you need to export it to Excel and save it using Excel. For
example, if you want to save the cost summary of a specific run: Go to Solutions/View Reports/Summary
and in the Cost Summary report hit Export The system will save the file as a .xls file in whatever directory
you 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 with
MetalWorks until the end of the planning horizon. That is, it is not possible, for instance, to open a
warehouse in 2001 and close it in 2003.
When you optimize for every year, do not forget to edit the data (customer demand, existing
warehouses, 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 the
Iowa plant must be shut down for one month at the bottom of page 2 and Installing this equipment
will 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 production