Model development and analysis of the case study. Answer all the questions.
What is the lowest cost for SND? (Remember to include all the related cost compo- nents in your model.)
How is the international sea transport managed?
How is the domestic road transport managed?
Where should SVD set up its subsidiary DMS?
What can you conclude from you model?
How sensitive is your solution to some of the parameters, such as unit cost at different places, transport cost, lead time?
How sensitive is your solution to the fluctuations of demand?
What will happen if SND does not set up the subsidiary DMS? More specifically, how would the transport operations change?
Let’s we assume that for domestic transport, coastal shipping can be used at one tenth of the road transport cost. Will this have some significant impacts on the solution (you can ignore the lead time for domestic sea transport)?

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