Transportation Model_or Project
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Operations Research Abhijit Naik (2009061) Elaine Fernandes (2009077) Ganesh Iyer (2009078) Mansi Navlakha (2009088) NitinC (2009096)
Case Background Mahalaxmi Enterprises Located in Kundaim Industrial Estate Distributors & retailers of hardware & paints Distributor of Acetylene, Oxygen & Nitrogen
cylinders. Distributes cylinders to engineering and cutting workshops in Ponda, Verna , Corlim & within Kundaim.
Most selling Items
Berger Red oxide primer 20ltrs
A ctu a lp h o to fro m M a h a la xm i’ s sto re h o u se
Acetylene Cylinders
Vehicles
2 Tata Ace’s 1st bought in 2006 (mileage 12kmpl) 2nd bought in 2009 (mileage 14kmpl)
1 Tata 407 Bought in 2005 (mileage 7kmpl)
Cost Structure
Variable cost per trip is the diesel charges per trip
Since the variable cost per trip does not consider the carrying capacity of the vehicles , we decided to calculate the variable cost / trip / cylinder .
Total cost per trip / cylinder = Fixed cost / trip / cylinder + variable cost / trip / cylinder
The total costs per trip per cylinder is considered for the Assignment model . The assignment model will help us assign the vehicles to the destinations such that the cost is minimized .
Since the number of lines equals the order of the square matrix ( 3lines = 3X3 matrix ), we have reached an optimal solution after 3 steps
The cells highlighted in yellow are the assignments of the vehicles to the respective destinations
SOLUTION :
According to the transportation model , the total cost / trip / cylinder is 62 . 9 Rs
EOQ for Red Oxide Primer
Cost of a 20 litre container is 2263 Rs Demand for this paint is the highest among all categories available Follows FIFO Sometimes the metal containers rust from the bottom and are classified under damages Storage costs comprise of the shed rental which is used to store the paint inventory Handling charges comprise of payments to workers for loading and unloading the inventory . Administration charges comprise basic stationery costs
Total Carrying costs
ORDER DETAILS
Calculations…
EOQ CALCULATIONS
EOQ VALUE =
EOQ VALUE = 22 UNITS ORDERS PER YEAR = 22 Orders
Cost Savings
THANK YOU
Case Background Mahalaxmi Enterprises Located in Kundaim Industrial Estate Distributors & retailers of hardware & paints Distributor of Acetylene, Oxygen & Nitrogen
cylinders. Distributes cylinders to engineering and cutting workshops in Ponda, Verna , Corlim & within Kundaim.
Most selling Items
Berger Red oxide primer 20ltrs
A ctu a lp h o to fro m M a h a la xm i’ s sto re h o u se
Acetylene Cylinders
Vehicles
2 Tata Ace’s 1st bought in 2006 (mileage 12kmpl) 2nd bought in 2009 (mileage 14kmpl)
1 Tata 407 Bought in 2005 (mileage 7kmpl)
Cost Structure
Variable cost per trip is the diesel charges per trip
Since the variable cost per trip does not consider the carrying capacity of the vehicles , we decided to calculate the variable cost / trip / cylinder .
Total cost per trip / cylinder = Fixed cost / trip / cylinder + variable cost / trip / cylinder
The total costs per trip per cylinder is considered for the Assignment model . The assignment model will help us assign the vehicles to the destinations such that the cost is minimized .
Since the number of lines equals the order of the square matrix ( 3lines = 3X3 matrix ), we have reached an optimal solution after 3 steps
The cells highlighted in yellow are the assignments of the vehicles to the respective destinations
SOLUTION :
According to the transportation model , the total cost / trip / cylinder is 62 . 9 Rs
EOQ for Red Oxide Primer
Cost of a 20 litre container is 2263 Rs Demand for this paint is the highest among all categories available Follows FIFO Sometimes the metal containers rust from the bottom and are classified under damages Storage costs comprise of the shed rental which is used to store the paint inventory Handling charges comprise of payments to workers for loading and unloading the inventory . Administration charges comprise basic stationery costs
Total Carrying costs
ORDER DETAILS
Calculations…
EOQ CALCULATIONS
EOQ VALUE =
EOQ VALUE = 22 UNITS ORDERS PER YEAR = 22 Orders
Cost Savings
THANK YOU
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