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    17 - Debajit Mahanta - OM05: Solution To Question-7 (pg-451)

    Uploaded by

    Gaurav Joardar
    The document discusses solutions to optimization problems involving transportation and production costs. It provides the optimal shipping plan between fabrication and assembly departments to minimize total monthly costs. The plan involves transferring specific quantities of products from each fabrication department to different assembly departments. The total monthly cost for this plan is calculated to be $627060. Fabrication department C is chosen because it has the lowest total production costs when transferring products to all assembly departments.

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    © All Rights Reserved
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    17 - Debajit Mahanta - OM05: Solution To Question-7 (pg-451)

    Uploaded by

    Gaurav Joardar
    20 views8 pages
    The document discusses solutions to optimization problems involving transportation and production costs. It provides the optimal shipping plan between fabrication and assembly departments to minimize total monthly costs. The plan involves transferring specific quantities of products from each fabrication department to different assembly departments. The total monthly cost for this plan is calculated to be $627060. Fabrication department C is chosen because it has the lowest total production costs when transferring products to all assembly departments.

    Original Description:

    Operation Management Assignments

    Original Title

    17 Debajit Mahanta OM05

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    The document discusses solutions to optimization problems involving transportation and production costs. It provides the optimal shipping plan between fabrication and assembly departments to minimize total monthly costs. The plan involves transferring specific quantities of products from each fabrication department to different assembly departments. The total monthly cost for this plan is calculated to be $627060. Fabrication department C is chosen because it has the lowest total production costs when transferring products to all assembly departments.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    20 views8 pages

    17 - Debajit Mahanta - OM05: Solution To Question-7 (pg-451)

    Uploaded by

    Gaurav Joardar
    The document discusses solutions to optimization problems involving transportation and production costs. It provides the optimal shipping plan between fabrication and assembly departments to minimize total monthly costs. The plan involves transferring specific quantities of products from each fabrication department to different assembly departments. The total monthly cost for this plan is calculated to be $627060. Fabrication department C is chosen because it has the lowest total production costs when transferring products to all assembly departments.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 8

    17_Debajit Mahanta_OM05

    Solution to Question-7 (pg-451)

    Spectragen's purchasing department has developed the following estimates:

    Anneal Outsourcing
    in-house annealing
    Number of parts per year 25000 25000
    Fixed cost per year ($) 85000 0
    Variable cost per part ($) 32 38

    So total cost per year,


    For annealing in house ($) 885000 (Fixed cost+variable cost)
    For outsourcing annealing ($) 950000 (Fixed cost+variable cost)

    Since total cost for outsourcing annealing is more than anneal in-house so Spectragen Inc. should purchase the a
    n Inc. should purchase the annealing equipment and anneal the parts.
    17_Debajit Mahanta_OM05

    Solution to Question-7 (pg-453)

    Matrix

    Performance factor Factor weight Economic data($) Rating/score


    Price 0.15 68 1
    Delivery schedule 0.25 0.8
    Schedule reliability 0.25 0.4
    Video card quality 0.2 0.8
    Video card features 0.15 0.5
    Total aggregate score
    in performance

    So from the above observation I would recommend vendor AVG since its aggregate weighted score of 0.74 is more t

    The following factors would be important in such a decision:

    (a) The performance of the supplier


    (b) The satisfaction level of the customers
    (c ) The existing market share of both the Matrix and AVG
    hanta_OM05

    Matrix AVG

    Weighted score Economic data($) Rating/score Weighted score


    0.15 76 0.89 0.13
    0.2 0.8 0.20
    0.1 0.6 0.15
    0.16 0.6 0.12
    0.075 0.9 0.14

    0.685 0.74

    aggregate weighted score of 0.74 is more than the weighted score of 0.685 for Matrix.
    17_Debajit Mahanta_OM05

    Solution to Case Acme

    1. Ans: The POM software library has been used to solve the transportation problem

    2. Ans: From the POM software I have got the following details

    Assembly department
    Fabrication 1 2 3
    department
    A 0 2000 10000
    B 0 19000 0
    C 5000 0 4000

    Explanation of the above solution:


    From the abobe table the following has been observed to minimize the total monthly costs,

    Number of products that should be transferred from fabrication department A to assembly department 1
    Number of products that should be transferred from fabrication department A to assembly department 2
    Number of products that should be transferred from fabrication department A to assembly department 3

    Number of products that should be transferred from fabrication department B to assembly department 1
    Number of products that should be transferred from fabrication department B to assembly department 2
    Number of products that should be transferred from fabrication department B to assembly department 3

    Number of products that should be transferred from fabrication department C to assembly department 1
    Number of products that should be transferred from fabrication department C to assembly department 2
    Number of products that should be transferred from fabrication department C to assembly department 3

    3. Ans: Given that,

    Fabrication Assembly Total cost


    department department ($/unit)
    1 16.2
    A 2 18.4
    3 21.3
    1 15.1
    B 2 12.8
    3 18.15
    1 12.5
    C 2 16.35
    3 17.89
    So the total monthly cost($) will be= 627060
    (results from my plan)

    4. Ans: Total production cost for the products that are transferred from fabrication department A to all the three assembly d
    Total production cost for the products that are transferred from fabrication department B to all the three assembly d
    Total production cost for the products that are transferred from fabrication department C to all the three assembly d

    Since the total production cost in fabrication department is less than the other fabrication departments hence I wou

    5. Ans: The following factors should be considered in determining such a shipping plan.

    (a) Transportation cost


    (b) Delivery of goods in time
    (c ) Quality and condition of the goods
    (d) Dependability and consistency of transportation service
    (e) Shipping products to be insured
    embly department 1 0
    embly department 2 2000
    embly department 3 10000

    embly department 1 0
    embly department 2 19000
    embly department 3 0

    embly department 1 5000


    embly department 2 0
    embly department 3 4000
    ent A to all the three assembly departments ($) 249800
    ent B to all the three assembly departments ($) 243200
    ent C to all the three assembly departments ($) 134060

    cation departments hence I would choose fabrication department C.

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