Thesis on Eit
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ECONOMICS OF INTERNATIONALTRANSPORTATION
TITLE OF THE PROJECT
OPTIMIZATION OF TRANSPORTATION COST OFLCD TV
SUBMMITED BY: SUBMITTED TO:
Dr. NAVAL KARRIR
RAJEV KUMAR PAL
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INDEX
S.No.
Topic PageNo.
1 Executive Summary 32 Introduction 4
3 Background 5
4 Transportation Problem 6
5 Approach and Methodology 8
Phase I Obtaining an initial feasible solution
6 Northwest-Corner Method 8
7 The Minimum Cell Cost method 9
8 Vogels Approximation Method (VAM) 10
Phase II Moving towards optimality
9 MODI Method 11
10 Stepping-Stone Method 1511 Analysis 17
12 Sensitivity Analysis 18
13 Conclusion 21
14 References 22
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EXECUTIVE SUMMARY
Today electronic products have become the main power of national economygrowth. All the manufacturers have set their primary markets to meet theconsumers demand. Taking the current LCD TV manufacturers as an example,they have to emphasize on the product design, performance and the reduction of cost. Therefore, nowadays the most important task for LCD TV industry is thatthe international manufacturer shall fix a suitable winwin price and productivecapacity for itself as well as for the Original Equipment Manufacturing (OEM)when the OEM has received the order, so that both sides could construct a long-established relation and they could reach the object of maximized profit.
This paper, reports the results from a series of various methods regarding how
the transportation cost of SONY LCD TV (50) could be optimized.Manufacturers have managed to break through the constraints of cost andcomplex cooperation relationship between partners, through strategic co-ordination and integration.
Effective distribution of SONY LCD TV improves all of the five performance
dimensions (cost, flexibility, responsiveness, delivery, and financial return),although the degrees of improvement on different performance dimensions aredifferent to some extent.
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INTRODUCTION
In the fiscal year 2008, ending in March 2009, Sony incurred its largestoperational loss in its history of $2.4 billion. Sharp incurred a net loss of $1.3billion in fiscal 2008, ending March 2008, citing stagnant consumption, fiercecompetition. (Source has given in references pg.)
The struggle for growth during the economic downturn forced, many
companies has stetted the target to reduce their prices in order to increase salesand to maintain their market share on the basis of contract manufacturers for cost-reduction opportunities.
To succeed in this shifting environment, Sony needs to build strong links withsuppliers. It is important that Sony and its suppliers share policies, strategiesand technology. Collaboration between Sony and its suppliers should ultimatelybe aimed at earning customer approval. This goal must form the common baseof Sony's procurement activities and its suppliers' sales activities. Sony callssuppliers capable of maintaining this kind of collaborative relationship"partners."
The overall structure of the SONY LCD TV supply chain is shown the
integration of the SONY LCD TV supply chain influences manufacturerscapability to satisfy market requirements. The integration relationship involvessuppliers, manufacturer, and firms downstream. In the co-ordination betweenmanufacturer and suppliers, the manufacturer sets up production planning bydemand forecasting or firm order from certain customers, and then places ordersto all Consumer demand and customer requirements are pushing the industryvery hard in the areas of product quality, price and delivery lead times, with
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customers expecting manufacturers to provide the production flexibility torespond to fluctuations in demand.
BACKGROUND
SONY LCD TV (50) which has total cost at factories Rs. 40,000
Transportation Mode Truck (By Road) which includes the Cost Factors (Transportation CostsRs.220/km., Admin. Cost, [email protected]%, Loading Charges, Octrai, Taxes (toll taxes+ excise duty + etc), and Warehouses charges, Unloading Charges etc.)
A liquid crystal display (LCD ) is a thin, flat panel used for electronically displayinginformation such as text, images, and moving pictures. It hasno problemto transportif it's stillin the factory packaging. Mostmanufacturersgo through a decent amount of work to makesure their packaging can stand up to fairly stressful conditions. For large LCD's it is harder todo so; however, it is usually at least packaged so that it can stand on any side. If there is no'this side up' on the box, then it is safe to transport on its side. (They are careful to note if damage will occur when transported on one side, because they would be liable for damageotherwise.) Without factory packaging-- The screens are fairly delicate to puncture andshould not be transported face-down or at a weird orientation.Factory packaging equalizespressure on all sturdy surfaces to minimise the risk of damage, and without packagingthere is none of this protection . Some of the packers movers Kanpur, Noida, Ghaziabadand Faridabad also offer warehousing and storage facilities to the customers. They have wellbuilt, spacious and moisture free warehouse well guarded by the companies employed guardsand workers. Warehouse are friendly for the storing all kinds like household items, industrialgoods, commercial goods, office goods and many other lovable commodities of thecustomers.
Table (A) Distance and Warehouses between Destination and Sources
S.N. Distance (Km) W1 W2 W31 GZB-Dehradun (216km.) Saharanpur
2 GZB-Mumbai (1418 km.) Bhopal Pune
3 GZB-Chennai (2114 km.) Bhopal Nagpur Vijayawada
4 Delhi-Dehradun (235km.) Saharanpur
5 Delhi-Mumbai (1407 km.) Bhopal Pune
6 Delhi-Chennai (2095km.) Bhopal Nagpur Vijayawada
7 Kanpur-Delhi (575 km.) Delhi Saharanpur
8 Kanpur- Mumbai (1288 km.) Nagpur Pune
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9 Kanpur- Chennai (1885 km.) Nagpur VijayawadaTRANSPORTATION PROBLEM
A destination may receive its demand from many sources.So, The objective is to determine the transporting plan, to meet all demands but not exceedany supply, to minimize the total transportation cost.The standard transportation model seeks to find a transportation plan for SONY LCD TV(50) from Ghaziabad, Delhi and Kanpur warehouses toDehradun, Mumbai and Chennaistores.The data in the model includes:
(1) The amount of supply at each source and the demand at each destination;(2) The unit transportation cost of theSONY LCD TV (50)from each source to each
destination.Table (1)
Warehouse/Stores
Dehradun Mumbai Chennai Supply
Ghaziabad Rs.2667 Rs.3781 Rs.4525 150 UnitsDelhi Rs.2768 Rs.3760 Rs.4500 200 UnitsKanpur Rs.3473 Rs.3635 Rs.4267 150 UnitsDemand 100 Units 200 Units 200 Units 500 Units
Transportation Problem is a special case of Linear Programming:
The LP formulation of the TP problem is:
Let,
Xij = quantity of SONY LCD TV (50) transport from source i to destination j
Cij = per unit transporting cost from sources i to destination j (fromGhaziabad, Delhi andKanpur warehouses toDehradun, Mumbai and Chennaistores)
Si be the row i total supply (where i= 1, 2, 3,)
Dj be the column j total demand (where j= 1, 2, 3)
For this type of problem all units are available
3 Warehouse and 3 Stores
No. of Variables is 9
No. of Constraints is 6 (Constraints are for warehouses capacity and stores demand)
To solve the transportation problem by its special purpose algorithm, it is required that thesum of the supplies at the warehouses equal the sum of the demands at the stores.
Si(i=1,2,3)= Dj(j=1,2,3)= 500 units6
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LP Formulation
The linear programming formulation in terms of the amounts shipped from the origins to thedestinations, Xij, can be written as:
Objective function:
Minimize Z = 2667X11 +2768X21 +3437X31 + 3781X21 + 3760X22 + 3635X23 + 4525X31+4500X32 +4267X33
Subject to the constraints:
X11+X21+X31> 100
X12+X22+X32> 200
X13+X23+X33> 200
X11+X12+X13< 150
X21+X22+X23< 200
X31+X32+X33< 150With non negativity condition: X11,X12,X13,X21,X22,X23,X31,X32,X33> 0
Network Representation:
Figure (1)
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Dehradun
(S1) 150 units
Mumbai
(S2) 200 units
Chennai
(S3) 150 units
Ghaziabad
(D1) 100 units
Delhi
(D2) 200 units
Kanpur
(D3) 200 units
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(Warehouses) (Stores)
APPROCH AND METHODOLOGY
The transportation problem is solved in two phases:
Phase I obtaining an initial feasible solution
Phase II moving toward optimality
In Phase I , the Minimum-Cost Procedure can be used to establish an initial basic feasiblesolution without doing numerous iterations of the Simplex Method.
There are three different ways:
Northwest corner method
The Minimum cell cost method
Vogels approximation method (VAM)
Northwest corner method :
The North West corner method is easy to use and requires only simple calculation. As themethods name implies, we start work in the northwest corner or the upper left cell. Make anallocation to this cell that will use either all the demand for that row or all the supply for thatcolumn, whichever are smaller as cell (1, 1) 100 units (Rs. 2667). We see that, site1s supplyis smaller than Dehraduns demand. This eliminates column site 1 from further considerationbecause we used all its demand and now repeat the above steps, we have the followingtableau and Stop since all allocated have been assigned.
Initial tableau of NW corner method
Table (2)
Warehouse(i)/Stores(j)
Dehradun Mumbai Chennai Supply
Ghaziabad Rs.2667 Rs.3781 Rs.4525 150 Units
Delhi Rs.2768 Rs.3760 Rs.4500 200 Units
Kanpur Rs.3473 Rs.3635 Rs.4267 150 Units
Demand 100 Units 200 Units 100 Units 500 Units
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The initial basic feasible solution is:
2667X11 +3781X21 + 3760X22 + 4500X32 +4267X33 =
2667(100) +3781(50) + 3760(150) + 4500(50) +4267(150) = Rs.18,84,800
Minimum cell cost method :
The initial basic feasible solution obtained by this method usually gives a lower beginningcost, so start with lowest cost(Rs.2667)entry 100 units in the cell (1, 1) and allocated asmuch possible, i.e., X11= 100 units. The next lowest cost (Rs.2768) lies in the cell (2, 1), somake no allocation, because the demand from Dehradun Store was already used in the cell (1,1). The next lowest cost (Rs.3635) lies in the cell (3, 2), so allocated X32 =150 units.Similarly for cell (2, 2) allocation is X22 = 50 units, X31 =50 units, X32= 150 units.
Initial tableau of the Minimum cell cost method
Table (3)
Warehouse(i)/Stores(j)
Dehradun Mumbai Chennai Supply
Ghaziabad Rs.2667 Rs.3781 Rs.4525 150 Units
Delhi Rs.2768 Rs.3760 Rs.4500 200 Units
Kanpur Rs.3473 Rs.3635 Rs.4267 150 Units
Demand 100 Units 200 Units 200 Units 500 Units
The initial basic feasible solution is:
2667X11 +3760X22 + 3635X23 + 4525X31 +4500X32 =2667(100) +3760(50) + 3635(150) + 4525(50) +4500(150) = Rs.19,01,200
The cost is more by Rs.1, 16,400, as compared to the cost obtained by Northwest corner method.
Vogels approximation method (VAM) : 9
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In this method there are some steps to obtaining initial basic feasible solution.
Step 1: for each column and row, determine its penalty cost by subtracting their two of their least cost
Step 2: select row/column that has the highest penalty cost in step 1Step 3: assign as much as allocation to the selected row/column that has the least cost
Step 4: Block those cells that cannot be further allocated
Step 5: Repeat above steps until all allocations have been assigned
Initial tableau of the Vogels approximation method (VAM)
Table (4)
Penalty (2768-2667)=101
(3635-3760)=125
(4500-4267)=233
Warehouse(i)/Stores(j)
Dehradun Mumbai Chennai Supply Penalty Penalty
Ghaziabad Rs.2667 Rs.3781 Rs.4525 150 Units (3781-2667)=1114
(4542-3781)=744
Delhi Rs.2768 Rs.3760 Rs.4500 200 Units (3760-2768)=792
(4500-3760)=740
Kanpur Rs.3473 Rs.3635 Rs.4267 150 Units (3635-3473)=162 (4267-3635)=632Demand 100 Units 200 Units 200 Units 500 Units
The initial basic feasible solution is:
2667X11 +3781X21 + 3760X22 + 4500X32 +4267X33=
2667(100) +3781(50) + 3760(150) + 4500(50) +4267(150) = Rs.18, 84,800
Initial solution from:
Northeast cost, total cost = Rs.1884800
The min cost, total cost = Rs.1901200
VAM, total cost = Rs.1884800
It shows that the 1st and 3rd method has the min cost. So, this will be used to obtaining optimalsolution.
Phase II
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In Phase II , the Stepping Stone Method, using the MODI method for evaluating the reducedcosts may be used to move from the initial feasible solution to the optimal one.
Modified distributed method (MODI) :
It is a modified version of stepping stone methodMODI has three important elements:
(1) It determines if a tableau is the optimal one
(2) It tells you which non-basic variable should be firstly considered as an entry variable
(3) It makes use of stepping-stone to get its answer of next iteration
Modified distributed method (MODI) for Initial tableau of the Vogels approximation
method (VAM): Initial tableau of the Vogels approximation method (VAM)
Table 4(a)
Vi V1 V2 V3
Ui Warehouse(i)/Stores(j)
Dehradun Mumbai Chennai Supply
U1 Ghaziabad Rs.2667 Rs.3781 Rs.4525 150 Units
U2 Delhi Rs.2768 Rs.3760 Rs.4500 200 Units
U3 Kanpur Rs.3473 Rs.3635 Rs.4267 150 Units
Demand 100 Units 200 Units 200 Units 500 Units
Lets test to see whether the current tableau (4a) represent the optimal solution. We can dothis because of duality and sensitivity analysis to interpret. We can introduce twoquantities Ui,
and Vj, where Ui, is the dual variable associated with row i and Vj, is the dual variable
associated with column.From duality theory:
Ui + Vj, = Cij ..eq (1) Represent all Basic Variables
We can compute all Ui, and Vj, values from the initial tableau (4a) using eq (1):
U1 + V1 = Rs.2667 (C11)................................................. (1)11
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U1 + V2 = Rs.3781(C12). (2)
U2 + V2= Rs.3760(C22).. (3)
U2 + V3 = Rs.4500(C23). (4)
U3 + V3= Rs.4267(C33).. (5)
Since, there are five equations and six unknowns (because we added a non basic variable). Tosolve these equations, it is necessary to assign only one of the unknown a value of zero. Wecan arbitrarily assign a value to one of the unknown. A common method is to choose the rowwith the largest number of allocations i.e. (U1= 0).
Using substitute calculates the Basic Variables:
Basic Variables: ( U1= 0, U2= -21, U3= -254 and V1= 2667, V2=3781, V3=4521)
To recognize whether this tableau represents the Optimal Solution;
For every Non basic Variable (those cells without any allocations)
Cij Ui Vj = K ij > 0..eq (2) (represent Non-Basic Variable)
For cell (1, 3) C13 U1 V3 = K 13= 4.eq (a)
For cell (2, 1) C21 U2 V1= K 21= 122..........................................eq (b)
For cell (3, 1) C31 U3 V1= K 31 = 1060.......................................eq (c)For cell (3, 2) C32 U3 V2 = K 32 = 108.........................................eq (d)
Non Basic Variables: ( K 13= 4, K 21= 122, K 31 = 1060, K 32 = 108 > 0)
Eq (2) is true in every case of eq (a), eq (b), eq (c), eq (d), because these variables aresatisfied with non negativity condition (K 13, K 21, K 31, K 32> 0). So the current tableaus(4a) represent the optimal solution and Rs.18, 84,800 is the lowest cost of
transportation.
Modified distributed method (MODI) for Initial tableau of the Minimum cell cost method:
Table 3(a) Initial tableau of the Minimum cell cost method
Vi V1 V2 V3
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Ui Warehouse(i)/Stores(j)
Dehradun Mumbai Chennai Supply
U1 Ghaziabad Rs.2667 Rs.3781 Rs.4525 150 Units
U2 Delhi Rs.2768 Rs.3760 Rs.4500 200 Units
U3 Kanpur Rs.3473 Rs.3635 Rs.4267 150 Units
Demand 100 Units 200 Units 200 Units 500 Units
From duality theory: (source given in references)
Ui + Vj, = Cij ..eq (1) Represent all Basic Variables
We can compute all Ui, and Vj, values from the initial tableau (3a) using eq (1):
(Where Ui, is the dual variable associated with row i and Vj, is the dual variable associatedwith column and Cij represent the cost of the allocation cell)
Ui + Vj = Cij (Represent the all basic variables)
U1 + V1 = Rs.2667 (C11)................................................. (6)
U1+ V3 = Rs.4525(C13).. (7)
U2 + V2= Rs.3760(C22).. (8)
U2 + V3 = Rs.4500(C23). (9)
U3 + V2= Rs.3635(C32).... (10)
Such that, there are five equations and six unknowns (because we added a non basicvariable). To solve these equations, it is necessary to assign only one of the unknown a value
of zero. (Let U1=0) because U1 has largest number of allocations.Basic Variables
U1= 0, U2= -25, U3= -50 and V1= 2667, V2=3785, V3=4525
To recognize whether this tableau represents the Optimal Solution;
For every Non basic Variable (those cells without any allocations)
Cij Ui Vj = K ij > 0.....eq (2) (represent Non-Basic Variable)
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For cell (1, 3) C13 U1 V3 = K 12= -4.... (e)
For cell (2, 1) C21 U2 V1= K 21= 126.................................................................................. (f)
For cell (3, 1) C31 U3 V1= K 31= 885.................................................................................. (g)
For cell (3, 2) C32 U3 V2 = K 33 = -208............................................................................... (h)
Non Basic Variables
K 12= -4,K 21= 126, K 31 = 856, K 32 = -208
Eq (2) is true in the case of eq (f) and eq (g) i.e. (K 21= 126 >0, K 31= 885>0)
Eq is not true in the case of eq (e) and eq (h) i.e. (K 12= -4 < 0, K 33 = -208 < 0) thiscondition does not satisfies with the non negativity conditions, so the current tableau (..)does not represent the optimal solution.
Stepping Stone Method
Table 3(b)
Warehouse(i)/Stores(j)
Dehradun Mumbai Chennai Supply
Ghaziabad Rs.2667 Rs.3781 Rs.4525 150 Units
Delhi Rs.2768 Rs.3760 Rs.4500 200 Units
Kanpur Rs.3473 Rs.3635 Rs.4267 150 Units
Demand 100 Units 200 Units 200 Units 500 Units
For simplex (Minimization Problems), Chose the most negative reduced costK 33= -208determined by cell (3, 3) as the new entering variable to reduce the cost by allocating this cell(3, 3) and to increase the value as much as possible so place the (+) in this cell (3, 3). (Thestepping stone path for this cell (3, 3) is (2, 2), (2, 3), (3, 2), (3, 3) Table ()). For equilibriumin everything place (-) in the cell (2, 3) and place (+) in cell (2, 2), this indicate the equality inthis row and then Place (-) in cell (3, 2). The allocations in cell (2, 3) and cell (3, 2)(subtraction cells) are 150 and 150 respectively. Thus the new solution is obtained byreallocating 150 on the stepping stone path. Thus for the next tableau:
X 33 = 0 + 150 = 150 (0 is its current allocation)14
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X 23 = 150 - 150 = 0
X 22 = 50 + 150 = 200
X 32 = 150 - 150 = 0 (blank for the next tableau)
Table 3(c)
Warehouse(i)/Stores(j)
Dehradun Mumbai Chennai Supply
Ghaziabad Rs.2667 Rs.3781 Rs.4525 150 Units
Delhi Rs.2768 Rs.3760(+)
Rs.4500(-)
200 Units
Kanpur Rs.3473 Rs.3635(-) Rs.4267(+) 150 Units
Demand 100 Units 200 Units 200 Units 500 Units
Table 3(d)
Warehouse(i)/Stores(j)
Dehradun Mumbai Chennai Supply
Ghaziabad Rs.2667 Rs.3781 Rs.4525 150 Units
Delhi Rs.2768 Rs.3760 Rs.4500 200 Units
Kanpur Rs.3473 Rs.3635 Rs.4267 150 Units
Demand 100 Units 200 Units 200 Units 500 Units
Modified distributed method (MODI)
Table 3(e)
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150856
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Cij Ui Vj = K ij ..eq (2) empty cell (represent non-basic variable)
C12 U1 V2 = K 12= 0.. (i)
C21 U2 V1= K 21= 0........................................................................................................... (j)
C23 U2 V3= K 23= 0........................................................................................................... (k)
C31 U3 V1= K 31 = 0........................................................................................................... (l)
C32 U3 V2 = K 32 = 0.......................................................................................................... (m)
Analysis:
Basic Variables
U1= 0, U2= -851, U3= -146 and V1= 3619, V2=3781, V3=5351Non Basic Variables
K 12= K 21= K 23= K 31= K 32= 0
K ij = 0 the solution is optimal and unique and this satisfied the non negativity conditionfor the transportation problem.
Total transportation cost:
2667X 11 + 3760X 22 + 4525X 32 +4267X 33
2667(100) + 3760(150) + 4525(50) +4267(150) = Rs.1086160
SENSITIVITY ANALYSIS
Sensitivity Analysis investigates the change in the optimum solution resulting from making
changes in parameters of the linear programming of transportation problem, So the changes
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in coefficients of (Cij) Cost Factors (Transportation Cost @ Rs. 180.00 per km, Insurance @2.7%, Tax- Toll Tax, Excise Duty @ 3%Warehouse Charges, And Unloading Charges) of the
Objective Function:
Minimize C = 2970.80X 11 +3005.00X 21 +3665.00X 31 + 5349.40X 12 + 5315.60X 22 +5105.40X 32 + 6628.80X 13 +6597.00X 23 +6387.20X 33
Table (1a)
Warehouse(i)/Stores(j)
Dehradun Mumbai Chennai Supply
Ghaziabad Rs.2970.80 Rs.5349.40 Rs.6628.80 150 Units
Delhi Rs.3005.00 Rs.5315.60 Rs.6597.00 200 Units
Kanpur Rs.3665.00 Rs.5105.40 Rs.6387.20 150 Units
Demand 100 Units 200 Units 200 Units 500 Units
NW Corner Method:
Warehouse(i)/Stores(j)
Dehradun Mumbai Chennai Supply
Ghaziabad Rs.2970.80 Rs.5349.40 Rs.6628.80 150 Units
Delhi Rs.3005.00 Rs.5315.60 Rs.6597.00 200 Units
Kanpur Rs.3665.00 Rs.5105.40 Rs.6387.20 150 Units
Demand 100 Units 200 Units 200 Units 500 Units
The initial basic feasible solution is:
2970.80X11 +5349.40X12 + 5315.60X22 + 6597.00X23 +6387.20X33
2970.80(100) +5349.40(50) + 5315.60(150) + 6597.00(50) +6387.20(150) = Rs.26181440
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Minimum Cell Cost Method:
Warehouse(i)/Stores(j)
Dehradun Mumbai Chennai Supply
Ghaziabad Rs.2970.80 Rs.5349.40 Rs.6628.80 150 Units
Delhi Rs.3005.00 Rs.5315.60 Rs.6597.00 200 Units
Kanpur Rs.3665.00 Rs.5105.40 Rs.6387.20 150 Units
Demand 100 Units 200 Units 200 Units 500 Units
The initial basic feasible solution is:
2970.80X11 +5315.60X22 + 5105.40X32 + 6628.80X13 +6597.00X23
2970.80(100) +6628.80(50) + 5315.60(50) + 6597.00(150) +5105.40(150) = Rs.2649680
VAM:
Penalty 34.20 210.20 421.00
Warehouse(i)/Stores(j)
Dehradun Mumbai Chennai Supply Penalty Penalty
Ghaziabad Rs.2970.80 Rs.5349.40 Rs.6628.80 150 Units 2378.80 1279.80
Delhi Rs.3005.00 Rs.5315.60 Rs.6597.00 200 Units 2310.60 1281.40
Kanpur Rs.3665.00 Rs.5105.40 Rs.6387.20 150 Units 1440.40 1070.60
Demand 100 Units 200 Units 200 Units 500 Units
The initial basic feasible solution is:
2970.80X11 + 5315.60X22 + 6628.80X13 +6387.20X33
2970.80(100) +6628.80(50) + 5315.60(200) +6387.20(150) = Rs.2681060
Northeast cost, total cost = Rs.2618140 19
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The min cost, total cost = Rs.2649680
VAM, total cost = Rs.2681060
And now, to obtaining optimal solution select the Minimum Cell Cost Method tableau
Modified distributed method (MODI) for Initial tableau of the Minimum cell cost method:
Warehouse(i)/Stores(j)
Dehradun Mumbai Chennai Supply
Ghaziabad Rs.2970.80 Rs.5349.40 Rs.6628.80 150 Units
Delhi Rs.3005.00 Rs.5315.60 Rs.6597.00 200 Units
Kanpur Rs.3665.00 Rs.5105.40 Rs.6387.20 150 Units
Demand 100 Units 200 Units 100 Units 500 Units
Basic Variables
U1= 0, U2= -31.80, U3= -242 and V1= 2970.80, V2=5347.40, V3=6629.20
Non Basic Variables
K 12= 2,K 21= 66, K 31 = 836.20, K 33 = .40
K ij > 0 the solution is optimal and unique and this satisfied the non negativity conditionfor the transportation problem, therefore an optimal basic feasible solution willmaintain its optimality if the change in C ij.
CONCLUSION
.The LCD-TV market will continue to grow robustly during the downturn in2009; the operational and financial challenges caused by the recession are
forcing many OEMs to reconsider their internal expansion plans and20
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outsourcing strategies, as well as to initiate changes that are having animmediate impact on the supply chain
Sony believes that cooperation as true partners is critical to supplying productsthat achieve high levels of customer satisfaction. Sony and its suppliers work together in a wide range of areas - by combining technological skills thatcomplement each other, building powerful supply chains, preserving andenhancing the quality of parts, strictly complying with relevant laws andregulations and contributing to society as a whole.
In this paper, a particular method for evaluating the sensitivity analysis of supply and demand values was presented.Supposing the balance in the algorithms of transportation problems, thesensitivity analysis of transportation problems is, in one hand, a simultaneousanalysis of right-hand-side parameters and on the other hand, theimplementation of the balanced equation. Like a constraint, this balanced
equation directly affects the parameters whose changes are important. Thus, inthe sensitivity analysis of supply and demand in transportation problem,because of the functional relation between supply and demand parameters, wealways face the simultaneous changes of parameters.
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S.D.Sharma, Operation Research,(Theory, Methods and Applications),
2009, pg.TP.1-TP8121
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