The LOCKBOX.xls Model

Locating a Lockbox

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As a corporate manager or officer of a bank whose clients must deal with the problem of optimizing collections from customers located at large distances from your home office, you must decide where to locate postal lockboxes, so that customers' deposits can be credited with a minimum of expense caused by mail delay while minimizing operating costs associated with the locations. In addition, each customer must be assigned to exactly one location.

Objective of Optimization:
Each customer must be assigned to a postal lockbox, so as to minimize the sum of float-time expense and monthly fixed operating costs.


Logistics | Geographic | Plant Location |