SUBMITTED TO:

Dr. HITESH ARORA

SUBMITTED BY:
VARUN KABARIA
221061
FMG 22 B
DECISION MAKING MODELS
PROJECT
Preferred Plant Site Based on Raw material
Pro!rement Cost
DECISION MAKING MODELS PROJECT
ABSTRACT
ABC LIMITED is a HDPP (High Density Poly!oylene" #o$en sa%&
'an()a%t(!ing %o'any #hi%h %ate!s to the nee* o) %e'ent+ s(ga! an*
)e!tili,e! !o*(%ing %o'anies- D(e to its in%!easing 'a!&et sha!e+ the
%o'any inten*s to oen ( a ne# 'an()a%t(!ing lant- The %o'any is
%onte'lating o$e! t#o site otions a$aila.le-
The 'a/o! !a# 'ate!ial that the %o'any (tilises is HDPP i-e- High
Density Poly!oylene #hi%h it a%0(i!es )!o' $a!io(s !e)ine!ies- These
a!e g!an(le shae* s(.stan%es e1t!a%te* )!o' et!ole('-
Th(s *een*ing (on the !o%(!e'ent %ost o) this !a# 'ate!ial )o! all
the oe!ating lants+ in%l(*ing the ne# lant t(!n .y t(!n+ a %onsens(s
%an .e !ea%he* (on as to #hi%h site #o(l* .e 'o!e !o)ita.le-
2ORE SCHOOL O2 MANAGEMENT
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DECISION MAKING MODELS PROJECT
TABLE OF CONTENTS
Abstract ................................................................. 2
Acknowledgement ................................................................. 3
Problem at and .................................................................
!
Sol"t#on to te $roblem .................................................................
%
E&cel sol'er .................................................................
()
Recommendat#on .................................................................
2*
B#bl#ogra$+ ................................................................. 2(
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DECISION MAKING MODELS PROJECT
PROBLE, AT -AN.
The %o'any 'entione* has 4 'an()a%t(!ing sites in Ah'e*a.a*+
M('.ai 5 Jhansi- It (!%hases the !a# 'ate!ial )!o' 4 et!o%he'i%al
in*(st!ies lo%ate* in Ja'naga!+ Math(!a 5 Manali-
SUPPLY LOCATION DESTINATION LOCATION
Jamna"ar Ah'e*a.a*
Mat#!ra M('.ai
Manali Jhansi
Loo&ing at the in%!easing *e'an*+ the %o'any inten*s to e1an* its
o(t(t- Tho(gh the %o'any has otions to e1an* its )a%ilities at the
!esent lo%ation itsel)+ it inten*s to .e a lea*e! in the #este!n !egion o)
the %o(nt!y an* hen%e is %onte'lating o$e! the site otions a$aila.le
othe! than ones oe!ating-
PROPOSED SITE OPTIONS
$dai%!r
Kota
Th(s the %o'any lans to %hoose the .est alte!nati$e an* it inten*s to
*o so .y loo&ing o$e! the !o%(!e'ent %ost o) the !a# 'ate!ial )o! all the
lant sites in%l(*ing the ne# one- One sho(l* not )o!get that /(st the
in%l(sion o) a ne# lant 'ay also %hange the s(ly !oo!tions to othe!
lants in a #ay to a!ise at the 'ini'(' !o%(!e'ent %ost- Th(s the total
!o%(!e'ent %ost #ill .e ta&en into %onsi*e!ation !athe! than /(st )o! the
ne# lant-
2ORE SCHOOL O2 MANAGEMENT
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DECISION MAKING MODELS PROJECT
The )ollo#ing ta.le enlists the *e'an* o) the !a# 'ate!ial .y $a!io(s
sites7
PLANT DEMAND (tonnes / month)
A#meda&ad 899
M!m&ai :99
J#ansi ::9
Latest plant %!*
Total Demand 2/**
The )ollo#ing ta.le enlists the s(ly st!ength )!o' ea%h so(!%e7
SOURCE SUPPLY CAPACITY (tonnes / month)
Jamna"ar ;999
Mat#!ra <99
Manali 899
Total Suppl 2/**
The %ost o) !o%(!ing HDPP !a# 'ate!ial )o! ea%h lant+ in%l(*ing the
ne# ones+ is enliste* in the )ollo#ing ta.le7
Cost pe! un"t p!o#u!ement (Rupees "n La$hs pe! tonne)
Ah'e*a.a
*
M('.ai Jhansi =*ai(! Kota
Jamna"ar 2 / ! ( 3
Mat#!ra ! ! 3 3 (
Manali ! % 3 ! /
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DECISION MAKING MODELS PROJECT
SOL0T1ON TO T-E PROBLE,
>e #ill sta!t .y ta&ing the !oose* lant sites one .y one-
POSS1B1L1T2 (3
A#meda&ad M!m&ai J#ansi $dai%!r Suppl
Jamna"ar 3 6 : ; (***
Mat#!ra : : 4 4 4**
Manali : ? 4 : )**
Demand )** !** !!* %!* 2/**
Sol$ing the a.o$e 'entione* .alan%e* t!anso!tation !o.le' .y
5ogel6s A$$ro&#mat#on ,etod 75O,8+ #e get the IB2S (Initial Basi%
2easi.le Sol(tion" as )ollo#s7
1BFS
%&& ' ' (&&
' /!* 9 3!*
' !* !!* 9
He!e as '@nA; B 8 B No- o) o%%(ie* %ells+ the sol(tion is NON9
.E:ENERATE
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DECISION MAKING MODELS PROJECT
No# (sing ,od#;#ed .#str#b"t#on ,etod 7,O.18 to %he%& the
oti'ality o) this IB2S+ #e )ollo# the 'etho* sho#n .elo#7
COST O) OCCUPIED CELLS
0#
3 A A ; (
A : A 4 3
A ? 4 A !
*+ ( 2 92 *
COST O) UNOCCUPIED CELLS
0#
A 6 : A (
: A 4 A 3
: A A : !
*+ ( 2 92 *
NET E*ALUATION TA,LE
' ; 8 A
( A 3 A
'( A A 9
He!e+ the aea!an%e o) CA;D is in*i%ati$e o) the )a%t the 1BFS o.taine* is
not oti'al-
Th(s to )(!the! oti'i,e the sol(tion+ #e inse!t a T-ETA $al(e in the
sol(tion ta.le %o!!eson*ing to the negati$e $al(e in the net e$al(ation
ta.le an* )ollo# the )ollo#ing 'etho*7
2ORE SCHOOL O2 MANAGEMENT
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DECISION MAKING MODELS PROJECT
%&& ' ' ' (&&-
' /!*< 9 3!*9
!*9 !!* 9
He!e #e ta&e B :9+ 'ini'(' o) all the $al(es in the loo+ so that the
.asi% $a!ia.les *oes not ta&e negati$e $al(es-
Th(s the ne1t Basi% 2easi.le Sol(tion is7
BFS
..& ' ' (.&
' !** 9 3**
.& 9 !!* 9
Again alying the ,O.1 metod )o! oti'ality7
COST O) OCCUPIED CELLS
0#
3 A A ; (
A : A 4 3
: A 4 A /
*+ ( 2 9( *
2ORE SCHOOL O2 MANAGEMENT
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DECISION MAKING MODELS PROJECT
COST O) UNOCCUPIED CELLS
0#
A 6 : A (
: A 4 A 3
A ? A : /
*+ ( 2 9( *
NET E*ALUATION TA,LE
' ; : A
( A ; A
' ; A ;
Th(s as all the ele'ents o) the EEAL=ATION TABLE a!e ositi$e+ the
B2S o.taine* is the O2S (Oti'al 2easi.le Sol(tion"7
OFS
..& ' ' (.&
' !** 9 3**
.& 9 !!* 9
Th(s+
OBJECTIEE 2=NCTION B Min F B (::9G3" @ (6:9G;" @ (:99G:" @
(499G4"
2ORE SCHOOL O2 MANAGEMENT
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DECISION MAKING MODELS PROJECT
@ (:9G:" @ (::9G4"
B ;;99 @ 6:9 @ 3:99 @ H99 @ 3:9 @ ;8:9
B Rs. )4!* 7#n Laks R"$ees8
#.e. =)4> !*> **>*** R"$ees?
POSS1B1L1T2 23
2ORE SCHOOL O2 MANAGEMENT
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DECISION MAKING MODELS PROJECT
A#meda&ad M!m&ai J#ansi Kota Suppl
Jamna"ar 3 6 : 4 (***
Mat#!ra : : 4 ; 4**
Manali : ? 4 6 )**
Demand )** !** !!* %!* 2/**
Sol$ing the a.o$e 'entione* .alan%e* t!anso!tation !o.le' .y
5ogel6s A$$ro&#mat#on ,etod 75O,8+ #e get the IB2S (Initial Basi%
2easi.le Sol(tion" as )ollo#s7
1BFS
%&& (&& ' '
' !* 9 %!*
' !* !!* 9
He!e as '@nA; B 8 B No- o) o%%(ie* %ells+ the sol(tion is NON9
.E:ENERATE
No# (sing ,od#;#ed .#str#b"t#on ,etod 7,O.18 to %he%& the
oti'ality o) this IB2S+ #e )ollo# the 'etho* sho#n .elo#7
2ORE SCHOOL O2 MANAGEMENT
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DECISION MAKING MODELS PROJECT
COST O) OCCUPIED CELLS
0#
3 6 A A *
A : A ; (
A ? 4 A 3
*+ 2 / * *
COST O) UNOCCUPIED CELLS
0#
A A : 4 *
: A 4 A (
: A A 6 3
*+ 2 / * *
NET E*ALUATION TA,LE
' A : 4
) A 3 A
* A A ;
Th(s as all the ele'ents o) the EEAL=ATION TABLE a!e ositi$e+ the
B2S o.taine* is the O2S (Oti'al 2easi.le Sol(tion"7
OFS
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DECISION MAKING MODELS PROJECT
%&& (&& ' '
' !* 9 %!*
' !* !!* 9
He!e+ the aea!an%e o) CA;D is in*i%ati$e o) the )a%t the 1BFS o.taine* is
not oti'al-
Th(s to )(!the! oti'i,e the sol(tion+ #e inse!t a T-ETA $al(e in the
sol(tion ta.le %o!!eson*ing to the negati$e $al(e in the net e$al(ation
ta.le an* )ollo# the )ollo#ing 'etho*7
Alternate Sol"t#on3
Eal(e C9D aea!s in the .otto' le)t %o!ne!-
This is in*i%ati$e o) an alternate sol"t#on
>e inse!t a T-ETA $al(e in the sol(tion ta.le %o!!eson*ing to the @ero
$al(e in the net e$al(ation ta.le an* )ollo# the )ollo#ing 'etho*7
%&&' (&&- ' '
' !* 9 %!*
!*9 !!* 9
He!e #e ta&e B :9+ 'ini'(' o) all the $al(es in the loo+ so that the
.asi% $a!ia.les *oes not ta&e negati$e $al(es-
Th(s the Alte!nate Oti'al Sol(tion is7
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DECISION MAKING MODELS PROJECT
Alternate O$t#mal Feas#ble Sol"t#on 7 AOFS8
..& (.& ' '&
' !* 9 %!*
.& 9 !!* 9
Th(s+ )o! OFS
OBJECTIEE 2=NCTION B Min F B (899G3" @ (699G6" @ (:9G:" @ (?:9G;"
@ (:9G?" @ (::9G4"
B ;399 @ ;899 @ 3:9 @ ?:9 @ 4:9 @ ;8:9
B Rs. !4** 7#n Laks R"$ees8
#.e. =!4> **> **>*** R"$ees?
2o! AOFS>
OBJECTIEE 2=NCTION B Min F B (::9G3" @ (6:9G6" @ (:9G:" @ (?:9G;"
@ (:9G:" @ (::9G4"
B ;;99 @ ;<99 @ 3:9 @ ?:9 @ 3:9 @ ;8:9
B Rs. !4** 7#n Laks R"$ees8
#.e. =!4> **> **>*** r"$ees?
EACEL SOL5ER
The sol(tions o.taine* a.o$e )o! the 3 ossi.ilities %an also .e o.taine*
.y (sing EACEL SOL5ER.
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DECISION MAKING MODELS PROJECT
POSS1B1L1T2 (
ANSBER REPORT
2ORE SCHOOL O2 MANAGEMENT
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DECISION MAKING MODELS PROJECT
,#croso;t E&cel (2.* Answer Re$ort
Borkseet3 =.ec#s#on mak#ng models $roCect.&ls&?Seet(
Re$ort Created3 *%9*D92*(3 (D33*3(%
Ta!get Cell (Min"
Cell Name Or#g#nal 5al"e F#nal 5al"e
IGI< OBJECTIEE2=NCTION 9 8<:9
A*/(sta.le Cells
Cell Name Or#g#nal 5al"e F#nal 5al"e
I2I;H Ja'naga! Ah'e*a.a* 9 ::9
IGI;H Ja'naga! M('.ai 9 9
IHI;H Ja'naga! Jhansi 9 9
III;H Ja'naga! =*ai(! 9 6:9
I2I39 Math(!a Ah'e*a.a* 9 9
IGI39 Math(!a M('.ai 9 :99
IHI39 Math(!a Jhansi 9 9
III39 Math(!a =*ai(! 9 499
I2I3; Manali Ah'e*a.a* 9 :9
IGI3; Manali M('.ai 9 9
IHI3; Manali Jhansi 9 ::9
III3; Manali =*ai(! 9 9
Const!aints
Cell Name Cell 5al"e Form"la Stat"s Slack
IJI;H Ja'naga! S(ly E1ha(ste* ;999 IJI;HBILI;H Not Bin*ing 9
IJI39 Math(!a S(ly E1ha(ste* <99 IJI39BILI39 Not Bin*ing 9
IJI3; Manali S(ly E1ha(ste* 899 IJI3;BILI3; Not Bin*ing 9
I2I33 De'an* Met Ah'e*a.a* 899 I2I33BI2I36 Not Bin*ing 9
IGI33 De'an* Met M('.ai :99 IGI33BIGI36 Not Bin*ing 9
IHI33 De'an* Met Jhansi ::9 IHI33BIHI36 Not Bin*ing 9
III33 De'an* Met =*ai(! ?:9 III33BIII36 Not Bin*ing 9
POSS1B1L1T2 2
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DECISION MAKING MODELS PROJECT
ANSBER REPORT
2ORE SCHOOL O2 MANAGEMENT
Page ;?
DECISION MAKING MODELS PROJECT
,#croso;t E&cel (2.* Answer Re$ort
Borkseet3 =.ec#s#on mak#ng models $roCect.&ls&?Seet/
Re$ort Created3 *%9*D92*(3 (D33*33)
Ta!get Cell (Min"
Cell Name Or#g#nal 5al"e F#nal 5al"e
IGI< OBJECTIEE2=NCTION 9 :<99
A*/(sta.le Cells
Cell Name Or#g#nal 5al"e F#nal 5al"e
I2I;H Ja'naga! Ah'e*a.a* 9 899
IGI;H Ja'naga! M('.ai 9 699
IHI;H Ja'naga! Jhansi 9 9
III;H Ja'naga! Kota 9 9
I2I39 Math(!a Ah'e*a.a* 9 9
IGI39 Math(!a M('.ai 9 :9
IHI39 Math(!a Jhansi 9 9
III39 Math(!a Kota 9 ?:9
I2I3; Manali Ah'e*a.a* 9 9
IGI3; Manali M('.ai 9 :9
IHI3; Manali Jhansi 9 ::9
III3; Manali Kota 9 9
Const!aints
Cell Name Cell 5al"e Form"la Stat"s Slack
IJI;H Ja'naga! S(ly E1ha(ste* ;999 IJI;HBILI;H Not Bin*ing 9
IJI39 Math(!a S(ly E1ha(ste* <99 IJI39BILI39 Not Bin*ing 9
IJI3; Manali S(ly E1ha(ste* 899 IJI3;BILI3; Not Bin*ing 9
I2I33 De'an* Met Ah'e*a.a* 899 I2I33BI2I36 Not Bin*ing 9
IGI33 De'an* Met M('.ai :99 IGI33BIGI36 Not Bin*ing 9
IHI33 De'an* Met Jhansi ::9 IHI33BIHI36 Not Bin*ing 9
III33 De'an* Met Kota ?:9 III33BIII36 Not Bin*ing 9
RECO,,EN.AT1ONS
2ORE SCHOOL O2 MANAGEMENT
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DECISION MAKING MODELS PROJECT
Gi$en the !o.le'+ #e ha$e e$al(ate* .oth the ossi.ilities a.o$e-
Poss#b#l#t+ (+ #he!e in 0da#$"r is sele%te* as the %hoi%e )o! the
ne# lant+ gi$es o(t the %ost o) !o%(!e'ent as Rs. )4.! Crores
Poss#b#l#t+ 2> #he!e in Eota is sele%te* as the %hoi%e )o! the ne#
lant+ gi$es o(t the %ost o) !o%(!e'ent as Rs. !4 Crores
Gi$en s(%h a la!ge *i))e!en%e in the %ost o) !o%(!e'ent+ the %o'any
#o(l* .e att!a%te* to#a!*s Poss#b#l#t+ 2+ th(s setting ( a lant in Eota
Mo!eo$e! this ossi.ility !o$i*es yo( #ith 3 otions o) 'eeting the
*e'an* o) the lants #hi%h gi$es the %o'any as #ell as the s(lie!
the )le1i.ility to oe!ate-
B1BL1O:RAP-2
2ORE SCHOOL O2 MANAGEMENT
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DECISION MAKING MODELS PROJECT
In(ts )!o' the 'anage! o) the %o'any
Boo&s 5 Notes
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