How can the current distribution plan be improved

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Reference no: EM131270129

Question 1. How can the current distribution plan be improved? Would the savings in costs justify changing the established relations between the Ankara-Bursa and IstanbulAntalya brewery-distributor pairs? Question 2. What should be the annual cost of shipping 1 million liters of beer from the Istanbul brewery to the Antalya distribution center, and from the Ankara brewery to the Bursa distribution center so that it becomes optimal for Efes to send beer between these pairs? Question 3. Is it cost-effective for Efes to import malt in the first year? If not, under what input parameter changes would importing malt possibly become a viable option? Question 4. The linear programming model uses the demand forecast for the next year to optimize the distribution plan, although demand is subject to variation over the years. Discuss the effects of beer demand variation on transportation costs using the information in the sensitivity report.

Reference no: EM131270129

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