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    OMDM Final Ready

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    Anurag Goyal
    This document presents a case study analyzing log transportation for Mafricom Group. It aims to minimize transportation costs by determining the optimal log hauling schedule from three logging sites to three sawmills. The document provides data on the daily supply from each site and demand from each mill. It then uses Vogel's approximation method to find an initial basic feasible solution for the transportation problem. The minimum cost of transportation is calculated to be 4250 thousand. The case study demonstrates how linear programming can be applied to real-world logistics and distribution problems to reduce costs.

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    OMDM Final Ready

    Uploaded by

    Anurag Goyal
    28 views11 pages
    This document presents a case study analyzing log transportation for Mafricom Group. It aims to minimize transportation costs by determining the optimal log hauling schedule from three logging sites to three sawmills. The document provides data on the daily supply from each site and demand from each mill. It then uses Vogel's approximation method to find an initial basic feasible solution for the transportation problem. The minimum cost of transportation is calculated to be 4250 thousand. The case study demonstrates how linear programming can be applied to real-world logistics and distribution problems to reduce costs.

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    This document presents a case study analyzing log transportation for Mafricom Group. It aims to minimize transportation costs by determining the optimal log hauling schedule from three logging sites to three sawmills. The document provides data on the daily supply from each site and demand from each mill. It then uses Vogel's approximation method to find an initial basic feasible solution for the transportation problem. The minimum cost of transportation is calculated to be 4250 thousand. The case study demonstrates how linear programming can be applied to real-world logistics and distribution problems to reduce costs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    28 views11 pages

    OMDM Final Ready

    Uploaded by

    Anurag Goyal
    This document presents a case study analyzing log transportation for Mafricom Group. It aims to minimize transportation costs by determining the optimal log hauling schedule from three logging sites to three sawmills. The document provides data on the daily supply from each site and demand from each mill. It then uses Vogel's approximation method to find an initial basic feasible solution for the transportation problem. The minimum cost of transportation is calculated to be 4250 thousand. The case study demonstrates how linear programming can be applied to real-world logistics and distribution problems to reduce costs.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    You are on page 1of 11

    A Case Study About Lego Group

    Assignment
    Course name: Operations Management and Decision
    Making (OMDM)

    Submitted to Professor Hitesh Arora

    Batch: FMG 31 (Section B)

    Group Members:
    Anurag Goyal (311069)
    Animesh Sharma (311070)
    Shruti Roy (311090)
    Table of Contents:
    1. Introduction 3

    2. Problem Statement 3

    3. Assumption 3

    4. Data 4

    5. Mathematical Operations 4

    6. Checking Solution on excel 10

    7. Result 11

    8. Conclusion 11

    9. Reference 11
    A CASE STUDY OF THE MAFRICOM GROUP
    INTRODUCTION
    The transportation problem is a kind of linear programming problem, that is involved
    in the minimization of the cost of goods that are to be distributed from particular
    sources or warehouses to specific locations along with meeting both the demand and
    supply limitations. This model could be applied in arenas like financial planning,
    personnel assignment, farm planning, transporting goods, work scheduling, and
    inventory control.

    PROBLEM STATEMENT
    The CEO OF Mafricom Group asks to see the following month’s log hauling schedule
    for three of his sawmills. He wants to ensure an adequate and steady flow of logs to
    his sawmills to capitalize upon the good lumber market. Secondly, he wants to
    minimize the cost of transportation. The harvesting group is planning to shift to three
    new logging sites. The logging supervisor estimated the number of truckloads of logs
    coming off each harvest site daily. The number of truckloads differs due to cutting and
    terrain patterns are unique for each site. Ultimately, the sawmill managers have
    estimated the truckloads of logs their mills need each day. (Cost is given in thousand)

    Assumptions
    To apply this model in the endeavor of cost minimization, we will be making
    the following assumption-

     The time-window constraints are characterized as soft and the customer-


    specified time windows are elastic.
     A vehicle’s service time at its destination is zero.
     The route is defined as a starting point from a depot, passing through
    several consumers, and ending at the depot. Every consumer on the
    route has to be visited only once by one of the vehicles.
     Shipping costs per unit are the same, no matter the quantity
    DATA
    Table 1 - Mafricom Group transportation problem.

    Mill A Mill B Mill C Supply

    90 100 130 20
    Site 1

    Site 2 100 140 100 15

    Site 3 100 80 80 10

    Demand 5 20 20 45

    Mathematical Operations

    Now we will use VAM (Vogel’s approximation method) to find out the Initial Basic Feasible
    Solution.
    Checking Solution on Excel
    We can also put the data in excel to ensure that we have the optimum cost for transportation.
    We will put the data in an excel sheet and use the solver to find the optimum cost
    Result
    After formulating the linear model, we have concluded that the minimum cost of
    transportation is 4250 thousand.

    Conclusion
    Moving things as efficiently and effectively as possible is crucial for any business or
    organization. The key to reducing costs and maximizing revenues is ensuring that
    finished goods reach their target markets at the lowest possible cost. As a result,
    Petronas is engaging a trading firm to improve its distribution in this case. The
    aforementioned study demonstrated how this specific type of LPP was used as a
    decision-making tool and how the business used a trading arm to reduce costs and
    maximize profits. Therefore, we may conclude that we can employ transportation LPP
    in real-world commercial settings to reduce costs and subsequently maximize profits.

    Reference:
    https://catalog.extension.oregonstate.edu/sites/catalog/files/project/pdf/em8779.pdf#:~:text=t
    he%20transportation%20problem.%20The%20transportation%20problem%20One%20of,Ba
    sically%2C%20the%20purpose%20is%20to%20minimize%20the%20cost

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