Solving the Model Using Linear Programming

In this section, we describe the optimal solution to the problem using linear programming as a solution tool. The linear programming model takes a global look at the problem and incorporates the path of flows. 

The linear programming tool is a first step in uncovering possible choices to operate a supply chain that may differ from the usual heuristics that do not account for the chain structure. Often the solution generated exposes opportunities that may not have been considered. At other times, the solution enables an understanding of the value of changes to a supply chain, such as addition of new supply sources or warehouses, that may further improve performance. 

In addition, the optimization model also provides sensitivity analysis that can be used to understand the impact of capacity or demand changes. 

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