OMGT2287 Supply Chain Modelling & Design

Assignment 3(Case Study 1)

Report
Submitted by: Himanshu Sharma
Student ID: S3701796
Date: 16th August 2020
Email: [email protected]

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Objective:
Owing to different sectors that are supplying the garbage to the available five sectors, a solver equation was to be
established in order to ensure minimum cost of transportation to the site and maximize the amount of the recycled
garbage.

The rec-cycling site can recycle only as per its maximum capacity of recycling and as per its efficiency
As per the given data provided, the actual maximum recycling capacity can be calculated as

= Rated Capacity x Efficiency

So, the actual maximum capacity can be calculated as Sites

= (20*0.35) = 7 1
= (20*0.40) = 8 2
= (30*0.20) = 6 3
= (15*0.60) = 9 4
= (15*0.55) = 8.25 5

Now consider for a given sector a and site b, Xab will be the amount of garbage from sector a
disposal to site b for recycling

where 1 ≤a≤ 10 and 1 ≤ b≤ 5

Therefore, the Distribution Matrix will be:

1 X11 X12 X13 X14 X15

2 X21 X22 X23 X24 X25
3 X31 X32 X33 X34 X35
4 X41 X42 X43 X44 X45
5 X51 X52 X53 X54 X55
6 X61 X62 X63 X64 X65
7 X71 X72 X73 X74 X75
8 X81 X82 X83 X84 X85
9 X91 X92 X93 X94 X95
10 X101 X102 X103 X104 X105

From the given table we have the following Constraints (based on estimated recyclable garbage)
X11+X21+X31+X41+X51+X61+X71+X81+X91+X101˂20
˃7
X12+X2+X32+X42+X52+X62+X72+X82+X92+X102˂20
˃8
X13+X23+X33+X43+X53+X63+X73+X83+X93+X103˂30
˃6

X14+X24+X34+X44+X54+X64+X74+X84+X94+X104˂15˃
9
X15+X25+X35+X45+X55+X65+X75+X85+X95+X105˂15˃
8.25

Finding the Total Cost assuming all sites supplies to each

sector
Assuming that all sites are supplying each recycling site, maximum cost of transportation will
be experienced.

Sector 1 2 3 4 5
1 13.60 5.60 19.60 29.60 37.20
2 9.60 8.40 33.20 36.40 35.20
3 5.60 11.60 14.80 37.60 34.40
4 10.40 14.40 18.00 32.80 35.60
5 6.00 12.40 8.40 31.60 35.20
6 16.80 19.60 26.00 30.80 24.40
7 19.20 24.80 39.60 24.80 22.80
8 21.60 24.00 20.80 30.40 19.60
9 12.40 16.40 26.40 30.00 28.80
10 12.80 26.00 28.4 24.00 33.20

TOTAL KILOMETERS 128.00 163.20 235.20 308.00 306.40 1140.80

The total cost of transportation will be equivalent to=total no of km x cost of transportation per km

=1140.80 x$113918

=$129,957,654.40

Finding the SOLVER Equation

 Assumptions:
For the allocation to be done the following are the assumptions for finding the solver equations
1.Each sector supplies garbage tonnage to the site that does not supersede its
maximum operation capacity
2.All the sites are running their operations without any machine breakdown
 3.The number of turns of supplying the garbage is equal across all sectors
4. No recycling site will be supplied with garbage more than its maximum operational
capacity Recycling Site
Sector 1 2 3 4 5
1 13.60 5.60 19.60 29.60 37.20
2 9.60 8.40 33.20 36.40 35.20
3 5.60 11.60 14.80 37.60 34.40
4 10.40 14.40 18.00 32.80 35.60
5 6.00 12.40 8.40 31.60 35.20
6 16.80 19.60 26.00 30.80 24.40
7 19.20 24.80 39.60 24.80 22.80
8 21.60 24.00 20.80 30.40 19.60
9 12.40 16.40 26.40 30.00 28.80
10 12.80 26.00 28.4 24.00 33.20

From the above table it clearly shows the distance of each recycling site with reference to the sectors
For the cost of transportation to be minimized, close recycling sites should be selected to that effect
There will be three stages of procedural allocation. The first stage of allocation will be selection of close
sectors to the recycling sites
Since there are 5 recycling sites and ten sectors, each recycling site will be allocated 2 close sectors to
supply the garbage as shown below

Recycling Sites
Sector 1 2 3 4 5
1 13.60 5.60 19.60 29.60 37.20
2 9.60 8.40 33.20 36.40 35.20
3 5.60 11.60 14.80 37.60 34.40
4 10.40 14.40 18.00 32.80 35.60
5 6.00 12.40 8.40 31.60 35.20
6 16.80 19.60 26.00 30.80 24.40
7 19.20 24.80 39.60 24.80 22.80
8 21.60 24.00 20.80 30.40 19.60
9 12.40 16.40 26.40 30.00 28.80
10 12.80 26.00 28.4 24.00 33.20
 Key Site with no sector allocated
Allocated sectors to sites

From the above, sectors 4 and 9 have not been allocated any recycling site. The
remaining sectors will be allocated to the sites with reference to their closest
proximities

Now, the second stage of allocation will be for the remaining sectors to the recycling sites. The two closes
sectors will be selected from here

Recycling site
4
Sector 5
4 32.80 35.60

9 30.00 28.80

This implies the table of allocation will appear as follows

Sector 1 2 3 4 5
1 13.60 5.60 19.60 29.60 37.20
2 9.60 8.40 33.20 36.40 35.20
3 5.60 11.60 14.80 37.60 34.40
4 10.40 14.40 18.00 32.80 35.60
5 6.00 12.40 8.40 31.60 35.20
6 16.80 19.60 26.00 30.80 24.40
7 19.20 24.80 39.60 24.80 22.80
8 21.60 24.00 20.80 30.40 19.60
9 12.40 16.40 26.40 30.00 28.80
10 12.80 26.00 28.4 24.00 33.20

But from the above sites 4 and five has been allocated more than two sectors and therefore final
reallocation should be done
Sector 1 2 3 4 5
1 13.60 5.60 19.60 29.60 37.20
2 9.60 8.40 33.20 36.40 35.20
3 5.60 11.60 14.80 37.60 34.40
4 10.40 14.40 18.00 32.80 35.60
5 6.00 12.40 8.40 31.60 35.20
6 16.80 19.60 26.00 30.80 24.40
7 19.20 24.80 39.60 24.80 22.80
8 21.60 24.00 20.80 30.40 19.60
9 12.40 16.40 26.40 30.00 28.80
10 12.80 26.00 28.4 24.00 33.20

N/B The highlighted cells represent sectors allocated to the recycling sites
Therefore, the solver equation for the minimum cost of transportation will be

X31+X51 ˂20˃7=For site 1

X12+X22 ˂20˃8=For site 2
X43+X83 ˂30˃6=For site 3
X74+X104 ˂15˃9=For site 4
X65+X105 ˂15˃8.25=For site 5

Combining the above 5 equations, our solver equation will be

X31+X51+X43+X83+X74+X104+X65+X105=Total cost of transportation

On replacement of the solver equation with the actual digits we shall have
5.6+6.0+5.6+8.4+18.0+20.8+24.8+24.00+24.4+28.8=166.4 megatonnes
therefore, the cost for the minimum cost of transportation will be
=166.4x$113,918
=$18,955,955.20

From the above calculations, comparing the two scenarios of supply, the factor of contrast can be found by
= (Total cost when all sectors are supplying) / (Total Cost using the SOLVER equation)

= ($129,957,654.40/$18955955)
=7 Times
DISCUSSION:
The solver equation that was found is meant to be used to calculate for the final figure of the minimum distance
from the sector to the site. However, a sector of much higher distance was picked at some instances. The reason
was because having more than two sectors supplying garbage would deny the other site its supply. Therefore, a
balance is brought in between picking the site of slightly longer distance. In this scenario, all sectors were all
allocated respective recycling sites.
Moreover, the factor of the minimized cost, as calculated using the solver equation was found to be 7 times less
than the amount with the assumption that all sites were supplying garbage to the recycling site.

CONCLUSION:
In order for the cost of garbage recycling to be toned down, sectors of minimal distance apart with respect to the
recycling site should be considered for garbage supply. Moreover, sectors supplying the garbage should ensure
consistent supply of garbage in order to maximize the garbage collection