Members 

Roll No GROUP 8 – Section B

Saurabh Kumar  19BM63008 BSG Assignment 2
Sankalp Srivastava  19BM63018
Rahul Ganesh  19BM63026
Karthik Dasari  19BM63060
Ankit Mirajkar 19BM63062

Location of Facilities - Distribution Center

Summary
Deciding the location of a new plant, warehouse or other facility is an important and commonly discussed problem as long te
Uncertainties in transporation costs from the chosen location to the supply points are also required to be taken into conside
associated with 5 potential distribution centres (warehouses to store goods) and enables us to select the optimal location w

Discussion
We have selected 5 potential locations in some Indian states (Maharashtra, Jharkhand, West Bengal, etc.) for a new distributi
investment will also vary for every site, as shown in the Model Parameters worksheet. Other expenses such as Gas Prices, Nu
irrespective of the location chosen.
In the Model worksheet, we have listed 147 delivery points that must receive deliveries from the chosen distribution center.
week. We have considered factors such as detours, poor road conditions and indirect routes from distribution center to the s
Initially, in Row 5, we can see that no center has been selected. By entering 1 in any of the Decision cells in L8:L12, we can en
cell values as zero)
When we test each location, the model recalculates the Distances for the supply points as well as the cost cells in Row 5 with
offers the lowest Total Cost.
Using OptQuest, cont.
To view the details of a decision variable, highlight the cell and either select Define Decision from the Define menu or click
Decision button on the Crystal Ball toolbar.

Start OptQuest from the Run menu and use the OptQuest Wizard to view the settings for the optimization. The problem ha
can only select one of the five centers at a time) and one objective: to minimize Total Cost.

Run the optimization. For each optimization, OptQuest selects a new value within the defined range of each decision varia
runs a Crystal Ball simulation (e.g., 2000 trials). OptQuest then saves the mean Total Cost value. OptQuest then runs anot
new set of decision variables. OptQuest repeats this process, constantly searching for the lowest Total Cost until it either w
possible solution or reaches the end of the set running time. In this model, there are only five possibilities, so the model run

As OptQuest runs, it uses multiple metaheuristic methods and techniques to analyze past results and improve the quality a
process. You can watch OptQuest's progress through the performance graph, which shows a flattened line as it converges

Which center results in the lowest Total Cost? Is this what you expected? Once OptQuest is finished, you can copy the opt
your spreadsheet through the Copy Best Solution to Spreadsheet option in the Edit menu. Your spreadsheet now displays
and Crystal Ball displays the forecast chart for the simulation from the best optimization. You can use OptQuest's Solution A
review the other optimization results.

Copyright Information
Copyright © 2004, 2008, Oracle and/or its affiliates. All rights reserved.

Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names
may be trademarks of their respective owners.
only discussed problem as long term capital expenditure is involved, apart from strategic implications of the potential locations chosen.
equired to be taken into consideration, apart from operating costs and capital investment. The model we have built analyzes the costs
to select the optimal location with the least investment.

Bengal, etc.) for a new distribution center. The costs of transportation and operations will be different for each state, and the capital
expenses such as Gas Prices, Number of Employees, Years of Operation, KwH per Year and Electricity Costs will all remain constant,

m the chosen distribution center. Due to differences in geographical locations, these cities will receive deliveries at a different rate per
from distribution center to the supply centres in calculation of Distance per week.
ecision cells in L8:L12, we can enter a center into Row 5. ( Note: only select one center at a time, leaving the other four decision variable

ell as the cost cells in Row 5 with the data from the Model Parameters sheet. By testing each center, we can determine the location that
 n from the Define menu or click on the Define

he optimization. The problem has one constraint (you

ned range of each decision variable (e.g., 0 or 1) and

value. OptQuest then runs another simulation on a
lowest Total Cost until it either works through every
ve possibilities, so the model runs quickly.

results and improve the quality and speed of its

s a flattened line as it converges to an optimal result.

is finished, you can copy the optimal results back to

Your spreadsheet now displays the optimal solution,
ou can use OptQuest's Solution Analysis tool to
the potential locations chosen.
e have built analyzes the costs

for each state, and the capital

osts will all remain constant,

eliveries at a different rate per

g the other four decision variable

can determine the location that

 Location of Facilities - Distribution Center

Simulated Location State Population Latitude (°N) Longitude (°W)

1 Delhi Delhi 29,617,000 37.76° 100.02°

Column1 Potential Locations State Population Latitude (°N) Longitude (°W)

1 Delhi Delhi 29617000 37.76° 100.02°
2 Mumbai Mahārāshtra 23355000 37.98° 100.86°
3 Kolkāta West Bengal 17560000 36.69° 101.48°
4 Bangalore Karnātaka 13707000 38.08° 102.62°
5 Chennai Tamil Nādu 11324000 37.04° 100.94°

Column1 Satellite Stores State Population Latitude (°N) Longitude (°W)

1 Delhi Delhi 29617000 28.66° 77.23°
2 Mumbai Mahārāshtra 23355000 18.97° 72.83°
3 Kolkāta West Bengal 17560000 22.54° 88.34°
4 Bangalore Karnātaka 13707000 12.97° 77.60°
5 Chennai Tamil Nādu 11324000 13.08° 80.28°
6 Hyderābād Telangana 9746000 17.37° 78.47°
7 Pune Mahārāshtra 7764000 18.52° 73.86°
8 Ahmadābād Gujarāt 7410000 23.03° 72.58°
9 Sūrat Gujarāt 5807000 21.17° 72.83°
10 Lucknow Uttar Pradesh 3382000 26.85° 80.95°
11 Jaipur Rājasthān 3073350 26.92° 75.87°
12 Cawnpore Uttar Pradesh 2701324 26.47° 80.33°
13 Mirzāpur Uttar Pradesh 2496970 25.15° 82.58°
14 Nāgpur Mahārāshtra 2405665 21.15° 79.08°
15 Ghāziābād Uttar Pradesh 2381452 28.67° 77.42°
16 Indore Madhya Pradesh 2201927 22.72° 75.85°
17 Vadodara Gujarāt 2065771 22.30° 73.20°
18 Vishākhapatnam Andhra Pradesh 2035922 17.73° 83.32°
19 Bhopāl Madhya Pradesh 1883381 23.25° 77.42°
20 Chinchvad Mahārāshtra 1729320 18.63° 73.81°
21 Patna Bihār 1684222 25.61° 85.14°
22 Ludhiāna Punjab 1649000 30.91° 75.85°
23 Āgra Uttar Pradesh 1585705 27.18° 78.02°
24 Kalyān Mahārāshtra 1576614 19.25° 73.16°
25 Madurai Tamil Nādu 1561129 9.92° 78.12°
26 Jamshedpur Jharkhand 1558000 22.80° 86.18°
27 Nāsik Mahārāshtra 1486053 20.00° 73.78°
28 Farīdābād Haryāna 1394000 28.43° 77.32°
29 Aurangābād Mahārāshtra 1371330 19.88° 75.32°
30 Rājkot Gujarāt 1335397 22.30° 70.80°
31 Meerut Uttar Pradesh 1305429 28.99° 77.70°
32 Jabalpur Madhya Pradesh 1267564 23.17° 79.93°
33 Thāne Mahārāshtra 1261517 19.18° 72.96°
34 Dhanbād Jharkhand 1246000 23.79° 86.44°
35 Allahābād Uttar Pradesh 1201000 25.46° 81.84°
36 Vārānasi Uttar Pradesh 1198491 25.32° 83.01°
37 Srīnagar Jammu and Kashmīr 1180570 34.09° 74.81°
38 Amritsar Punjab 1132383 31.62° 74.85°
39 Alīgarh Uttar Pradesh 1131160 27.88° 78.08°
40 Bhiwandi Mahārāshtra 1125898 19.30° 73.07°
41 Gwalior Madhya Pradesh 1101981 26.22° 78.19°
42 Bhilai Chhattīsgarh 1097000 21.22° 81.43°
43 Hāora West Bengal 1077075 22.59° 88.31°
44 Rānchi Jharkhand 1073440 23.36° 85.33°
45 Bezwāda Andhra Pradesh 1048240 16.52° 80.62°
46 Chandīgarh Chandīgarh 1026459 30.74° 76.79°
47 Mysore Karnātaka 1014227 12.31° 76.65°
48 Raipur Chhattīsgarh 1010087 21.24° 81.63°
49 Kota Rājasthān 1001694 25.18° 75.83°
50 Bareilly Uttar Pradesh 1000000 28.36° 79.42°
51 Jodhpur Rājasthān 995000 26.29° 73.02°
52 Coimbatore Tamil Nādu 959823 11.00° 76.97°
53 Dispur Assam 957352 26.15° 91.77°
54 Guwāhāti Assam 957352 26.17° 91.77°
55 Solāpur Mahārāshtra 951558 17.68° 75.92°
56 Trichinopoly Tamil Nādu 916857 10.83° 78.69°
57 Hubli Karnātaka 890000 15.36° 75.13°
58 Jalandhar Punjab 873725 31.33° 75.58°
59 Bhubaneshwar Odisha 837737 20.26° 85.83°
60 Bhayandar Mahārāshtra 814655 19.30° 72.85°
61 Morādābād Uttar Pradesh 787000 28.84° 78.76°
62 Kolhāpur Mahārāshtra 750000 16.70° 74.23°
63 Thiruvananthapuram Kerala 743691 8.50° 76.90°
64 Sahāranpur Uttar Pradesh 705478 29.96° 77.55°
65 Warangal Telangana 704570 17.98° 79.60°
66 Salem Tamil Nādu 693236 11.65° 78.17°
67 Mālegaon Mahārāshtra 690844 20.55° 74.55°
68 Kochi Kerala 677381 9.97° 76.28°
69 Gorakhpur Uttar Pradesh 673446 26.76° 83.37°
70 Shimoga Karnātaka 654055 13.93° 75.56°
71 Tiruppūr Tamil Nādu 650000 11.11° 77.34°
72 Guntūr Andhra Pradesh 647508 16.30° 80.45°
73 Raurkela Odisha 625831 22.25° 84.88°
74 Mangalore Karnātaka 623841 12.87° 74.88°
75 Nānded Mahārāshtra 623708 19.15° 77.33°
76 Cuttack Odisha 606007 20.45° 85.87°
77 Chānda Mahārāshtra 595118 19.95° 79.30°
78 Dehra Dūn Uttarakhand 578420 30.32° 78.03°
79 Durgāpur West Bengal 566517 23.55° 87.32°
80 Āsansol West Bengal 563917 23.68° 86.97°
81 Bhāvnagar Gujarāt 554978 21.77° 72.14°
82 Amrāvati Mahārāshtra 549370 20.93° 77.75°
83 Nellore Andhra Pradesh 547621 14.43° 79.97°
84 Ajmer Rājasthān 542321 26.47° 74.64°
85 Tinnevelly Tamil Nādu 542200 8.73° 77.71°
86 Bīkaner Rājasthān 529007 28.02° 73.32°
87 Agartala Tripura 522613 23.83° 91.27°
88 Ujjain Madhya Pradesh 515215 23.18° 75.78°
89 Jhānsi Uttar Pradesh 507000 25.45° 78.57°
90 Ulhāsnagar Mahārāshtra 506098 19.22° 73.15°
91 Davangere Karnātaka 503564 14.47° 75.92°
92 Jammu Jammu and Kashmīr 502197 32.73° 74.85°
93 Belgaum Karnātaka 488157 15.87° 74.50°
94 Gulbarga Karnātaka 483615 17.33° 76.83°
95 Jāmnagar Gujarāt 479920 22.47° 70.07°
96 Dhūlia Mahārāshtra 479073 20.90° 74.78°
97 Gaya Bihār 474093 24.75° 85.02°
98 Jalgaon Mahārāshtra 460468 21.02° 75.57°
99 Kurnool Andhra Pradesh 457633 15.82° 78.04°
100 Udaipur Rājasthān 451100 24.58° 73.68°
101 Bellary Karnātaka 445388 15.15° 76.92°
102 Sāngli Mahārāshtra 436639 16.87° 74.57°
103 Tuticorin Tamil Nādu 436094 8.78° 78.13°
104 Calicut Kerala 431560 11.25° 75.77°
105 Akola Mahārāshtra 425817 20.73° 77.00°
106 Bhāgalpur Bihār 410210 25.25° 87.02°
107 Sīkar Rājasthān 400000 27.61° 75.14°
108 Tumkūr Karnātaka 399606 13.33° 77.10°
109 Quilon Kerala 397419 8.89° 76.59°
110 Muzaffarnagar Uttar Pradesh 392451 29.47° 77.70°
111 Bhīlwāra Rājasthān 389911 25.35° 74.63°
112 Nizāmābād Telangana 388505 18.67° 78.10°
113 Bhātpāra West Bengal 386019 22.87° 88.42°
114 Kākināda Andhra Pradesh 384182 16.93° 82.22°
115 Parbhani Mahārāshtra 378326 19.27° 76.76°
116 Pānihāti West Bengal 377347 22.69° 88.37°
117 Lātūr Mahārāshtra 374394 18.40° 76.57°
118 Rohtak Haryāna 374292 28.90° 76.57°
119 Rājapālaiyam Tamil Nādu 369991 9.42° 77.58°
120 Ahmadnagar Mahārāshtra 350859 19.08° 74.73°
121 Cuddapah Andhra Pradesh 344893 14.47° 78.82°
122 Rājahmundry Andhra Pradesh 341831 16.98° 81.78°
123 Alwar Rājasthān 341422 27.57° 76.62°
124 Muzaffarpur Bihār 333200 26.12° 85.38°
125 Bilāspur Chhattīsgarh 331030 22.15° 82.02°
126 Mathura Uttar Pradesh 330511 27.48° 77.68°
127 Kāmārhāti West Bengal 330211 22.67° 88.37°
128 Patiāla Punjab 329224 30.32° 76.39°
129 Saugor Madhya Pradesh 328240 23.85° 78.75°
130 Bijāpur Karnātaka 327427 16.82° 75.72°
131 Brahmapur Odisha 324726 19.32° 84.80°
132 Shāhjānpur Uttar Pradesh 320434 27.88° 79.91°
133 Trichūr Kerala 315596 10.52° 76.21°
134 Barddhamān West Bengal 314265 23.25° 87.85°
135 Kulti West Bengal 313809 23.73° 86.85°
136 Sambalpur Odisha 310852 21.47° 83.97°
137 Purnea Bihār 310817 25.78° 87.47°
138 Hisar Haryāna 307024 29.15° 75.74°
139 Fīrozābād Uttar Pradesh 306409 27.15° 78.39°
140 Bīdar Karnātaka 300136 17.92° 77.52°
141 Rāmpur Uttar Pradesh 296418 28.82° 79.03°
142 Shiliguri West Bengal 294546 26.72° 88.42°
143 Bāli West Bengal 293373 22.65° 88.34°
144 Pānīpat Haryāna 292808 29.40° 76.97°
145 Karīmnagar Telangana 289821 18.43° 79.15°
146 Bhuj Gujarāt 289429 23.25° 69.81°
147 Ichalkaranji Mahārāshtra 287570 16.70° 74.47°
Center

Capital Investment Operating Cost Transportation Cost Total Cost

₹ 55,000,000 ₹ 77,000,000 ₹ 112,945,431,669 ₹ 1,469,346,611,699

Trips per week Distance (km) Column2 Distance per week (km) Wage ($/hr)
592.34 0.000 65748 ₹ -
467.1 59.030 66017 ₹ -
351.2 123.053 70064 ₹ -
274.14 178.084 68014 ₹ -
226.48 79.419 67779 ₹ -

Trips per week Distance (km) Distance Factor Distance per week (km)
592.34 1668.229 1.500 2964476
467.1 2246.773 1.500 3148403
351.2 1304.258 1.500 1374166
274.14 2272.329 1.500 1868809
226.48 2148.504 1.500 1459780
194.92 2017.136 1.500 1179540
155.28 2207.848 1.500 1028504
148.2 2117.175 1.500 941296
116.14 2165.302 1.500 754435
67.64 1493.839 1.500 303130
61.467 1799.839 1.500 331892
54.02648 1542.824 1.500 250060
49.9394 1463.038 1.500 219190
48.1133 1816.652 1.500 262215
47.62904 1656.278 1.500 236661
44.03854 1935.379 1.500 255694
41.31542 2104.474 1.500 260842
40.71844 1772.817 1.500 216559
37.66762 1825.956 1.500 206338
34.5864 2205.815 1.500 228874
33.68444 1305.863 1.500 131962
32.98 1707.936 1.500 168983
31.7141 1659.538 1.500 157892
31.53228 2217.536 1.500 209772
31.22258 2408.022 1.500 225554
31.16 1385.304 1.500 129498
29.72106 2153.808 1.500 192040
27.88 1668.551 1.500 139558
27.4266 2072.900 1.500 170558
26.70794 2247.498 1.500 180078
26.10858 1630.261 1.500 127691
25.35128 1687.846 1.500 128367
25.23034 2231.269 1.500 168887
24.92 1324.556 1.500 99024
24.02 1492.373 1.500 107540
23.96982 1432.489 1.500 103010
23.6114 1732.117 1.500 122693
22.64766 1761.309 1.500 119669
 22.6232 1635.755 1.500 111018
22.51796 2220.858 1.500 150028
22.03962 1678.594 1.500 110987
21.94 1691.546 1.500 111338
21.5415 1302.777 1.500 84191
21.4688 1398.401 1.500 90066
20.9648 1955.875 1.500 123014
20.52918 1649.751 1.500 101604
20.28454 2348.824 1.500 142934
20.20174 1680.431 1.500 101843
20.03388 1853.541 1.500 111401
20 1539.511 1.500 92371
19.9 1994.396 1.500 119065
19.19646 2401.136 1.500 138280
19.14704 968.233 1.500 55616
19.14704 967.438 1.500 55571
19.03116 2132.526 1.500 121753
18.33714 2335.462 1.500 128477
17.8 2276.623 1.500 121572
17.4745 1718.123 1.500 90070
16.75474 1531.468 1.500 76978
16.2931 2233.028 1.500 109149
15.74 1567.485 1.500 74017
15 2263.345 1.500 101851
14.87382 2535.149 1.500 113122
14.10956 1617.116 1.500 68450
14.0914 1932.805 1.500 81708
13.86472 2314.648 1.500 96276
13.81688 2089.688 1.500 86619
13.54762 2484.701 1.500 100985
13.46892 1356.741 1.500 54822
13.0811 2321.469 1.500 91102
13 2379.088 1.500 92784
12.95016 1974.395 1.500 76706
12.51662 1473.353 1.500 55324
12.47682 2404.919 1.500 90017
12.47416 1994.773 1.500 74649
12.12014 1520.028 1.500 55269
11.90236 1857.404 1.500 66322
11.5684 1578.253 1.500 54774
11.33034 1295.593 1.500 44039
11.27834 1305.061 1.500 44157
11.09956 2185.255 1.500 72766
10.9874 1897.498 1.500 62546
10.95242 2091.196 1.500 68711
10.84642 1888.482 1.500 61450
10.844 2489.093 1.500 80975
10.58014 1932.334 1.500 61333
10.45226 1118.226 1.500 35064
10.3043 1923.042 1.500 59447
10.14 1681.331 1.500 51146
10.12196 2219.400 1.500 67394
10.07128 2278.678 1.500 68848
10.04394 1744.870 1.500 52576
9.76314 2285.806 1.500 66950
9.6723 2100.681 1.500 60955
9.5984 2286.008 1.500 65826
9.58146 2063.254 1.500 59307
9.48186 1349.998 1.500 38401
9.20936 2014.695 1.500 55662
9.15266 2111.361 1.500 57974
9.022 2001.976 1.500 54185
8.90776 2197.640 1.500 58728
8.73278 2238.629 1.500 58648
8.72188 2468.633 1.500 64593
8.6312 2442.592 1.500 63247
8.51634 1946.476 1.500 49731
8.2042 1226.648 1.500 30191
8 1826.669 1.500 43840
7.99212 2277.262 1.500 54600
7.94838 2528.016 1.500 60281
7.84902 1618.384 1.500 38108
7.79822 1920.980 1.500 44941
7.7701 1976.013 1.500 46061
7.72038 1283.467 1.500 29727
7.68364 1862.615 1.500 42935
7.56652 2019.953 1.500 45852
7.54694 1294.903 1.500 29318
7.48788 2067.221 1.500 46437
7.48584 1704.353 1.500 38276
7.39982 2457.384 1.500 54553
7.01718 2137.065 1.500 44989
6.89786 2141.301 1.500 44311
6.83662 1879.337 1.500 38545
6.82844 1735.337 1.500 35549
6.664 1271.303 1.500 25416
6.6206 1619.875 1.500 32174
6.61022 1671.473 1.500 33146
6.60422 1295.979 1.500 25677
6.58448 1684.448 1.500 33274
6.5648 1727.693 1.500 34026
6.54854 2180.709 1.500 42841
6.49452 1625.416 1.500 31669
6.40868 1523.471 1.500 29290
6.31192 2459.496 1.500 46572
6.2853 1287.426 1.500 24276
6.27618 1308.152 1.500 24631
6.21704 1554.596 1.500 28995
6.21634 1179.471 1.500 21996
6.14048 1751.522 1.500 32266
6.12818 1637.505 1.500 30105
6.00272 2039.285 1.500 36724
5.92836 1551.390 1.500 27592
5.89092 1088.633 1.500 19239
5.86746 1298.302 1.500 22853
5.85616 1666.831 1.500 29284
5.79642 1933.671 1.500 33625
5.78858 2278.298 1.500 39564
5.7514 2250.905 1.500 38838
Decisions Column3
1 1
0 0
0 0
0 0
0 0
Model Parameters
Transportation Cost
Truck Drivers Mean Wage Std Dev Error Hours Wage
Delhi ₹ 200.00 ₹ 27.20 13.6 39.6 ₹ 14.98
Mumbai ₹ 250.00 ₹ 19.25 7.7 39.7 ₹ 17.98
Kolkāta ₹ 180.00 ₹ 23.58 13.1 40.5 ₹ 17.41
Gas Prices $/MCF ₹ 80.00

Operating Cost
Laborers Mean Wage Std Dev Error Hours Wage
Delhi ₹ 200.00 ₹ 10.60 5.3 34.4 ₹ 11.34
Mumbai ₹ 250.00 ₹ 19.25 7.7 37 ₹ 12.74
Kolkāta ₹ 180.00 ₹ 7.56 4.2 32.8 ₹ 8.87
Number of Employees 950
Years of Operation 13.0
KwH per Year 11,000,000
Electricity Cost $/KwH ₹ 7.00

Capital Investment

Delhi ₹ 55,000,000.00
Mumbai ₹ 80,000,000.00
Kolkāta ₹ 75,000,000.00
Bangalore ₹ 90,000,000.00
Chennai ₹ 35,000,000.00