Exam 1 ISE 754: Logistics Engineering 

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Problem 1: 60 pts
The Engineering Division of the Orange County, NC, Planning and Inspections Department has
been tasked with studying how to implement a residential reuse program to supplement and
eventually replace a large portion of the county’s existing recycling program. They are looking to
establish reuse centers that are able to process both glass and plastic reusable containers, and have
found a reuse center design that is able to process up to 80,000 pounds of glass and plastic per
week. They have estimated that, after new restrictions on the use of disposable containers are in
place, the per-capita reuse demand will be around four pounds per week, and they would like to
know both how many centers they should establish and where in the county they should be located.
2
Problem 2: 40 pts
Each year, 720, 120, and 480 units of three different raw materials are to be shipped each year to
a manufacturer in Austin, TX, from a supplier in Chicago, IL, who supplies similar materials to
manufacturers all over the country. Each unit weighs 16, 150, and 40 lb, occupies two, six, and 12
ft3
, costs $500, $200, and $100, and will have a salvage value after one year of $50, $180, and $80,
respectively. Assuming that the materials are used at a constant rate and that they will be
transported via truck, determine, for each material, how it should be transported (TL, LTL, or as
aggregate TL), how frequently it should be shipped, and how much should be transported in each
shipment.