# In the past, shipments of blood for 4 hospitals in rural Victoria are co-ordinated from a cental office.

In the past, shipments of blood for 4 hospitals in rural Victoria are co-ordinated from a cental office.

The office draws up periodic delivery schedules for 4 major hospitals in the region from the blood banks. The blood is shipped from 3 major blood banks. An auditor has found that the manual technique involved in deriving the schedules is not cost effective, and the central office has decided to use mathematical modelling for minimising the costs involved.

The first step involved the central office collecting data on average costs, demand and supply. Costs to ship a standard container of blood from each bank to each hospital have been collated and these are provided below. Also listed, in the table, are the numbers of containers available in each blood bank, and the number of containers required by each hospital. All these figures have been based on average weekly requirements and supply.

As the consultant to the regional blood bank, you are required to determine the number of weekly shipments from each blood bank to each hospital. Direct your answers in an attempt to minimise the total costs involved.

Discuss the implications of the solution.
(6 marks)

Part B

Explain what other factors you would consider to create a more realistic mathematical model. In your answer, discuss whether you would use a different mathematical modelling technique, or modify the transportation model to include new parameters.

(6 marks)

Question 1
You can use POM-QM for Windows for this question. Note that there is a different module for the Quantity Discount Model. Limit your answer to 350 words for Part B and 350 words for Part C

Question 2
For Part 1 of this question, the precedence diagram should be drawn using the methodology illustrated in the Interact site for this subject. Use the POM-QM for Windows software only to confirm your calculations (i.e. to check your answers after you have drawn the network and calculated the activity times, project duration, etc). The diagram can be drawn manually, or by using some software such as MS PowerPoint. Limit your answer to 350 words for Part A and 500 words for Part B. This word count will not include any tables and figures that are incorporated in your answer

Question 3
Use the Transportation module in POM-QM for Windows. Limit your answer to 200 words in Part A, and 350 words for Part B
Rationale
This assignment is based on topics scheduled for the first 6 weeks and involves the application theoretical concepts and both quantitative and qualitative techniques. The objective is to develop skills in creating frameworks and models of typical problems and issues faced in Service Operations Management, analysing them and interpreting them as part of the decision making process.

In more specific terms, this assignment aims to:

enhance understanding of key concepts and issues of Service Operations Management;
develop analytical skills required for drawing up models based on information gleaned from short case studies and other data describing various situations;
offer experience in applying contemporary and evolving operations management tools, concepts and models to a variety of situations;
develop skills in analysing models and interpreting the results for improving operations performance and for other decision making processes;
acknowledge the advantages, disadvantages and limitations of these tools; and
offer insights into how theoretical concepts, models and systems can be modified and applied in practical or realistic situations.
Marking criteria
Your assignment will be evaluated on the following criteria:

critical and analytical thinking in addition to logical reasoning
adequate use of the resources for this subject
evidence of a good understanding of the concepts, systems and models in Service Operations Management
evidence of the ability to apply the tools and models studied.

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