OPERATION

RESEARCH
ASSIGNMENT

“3 Phases 8 Step Methodology”

1
 PRE- MODELLING PHASE

Problem Identification:

The synthetic rubber industry produces a

large amount of waste and residue in
which the Liquid Sap has a major role. The
waste problems differ considerably for
different plant sites, depending on the
raw materials used and the number of
intermediates produced. Varying types of
Sap Liquids produce carrying amount of
waste however the final rubber product
depends on yield and quality of Liquid SAP
used. Depending on the yield, waste, class
and price the quality and efficiency of the
rubber can be determined. The
manufacturer wants to understand how to
allocate the orders of the different Liquid
SAP based on yield, waste, class and price.

Quantifying the Problem:

The company has three different types of

Liquid Sap’s with different characteristics
profiles. The different Liquid Sap’s have
different amount of yield, wastage & Cost.

The objective function here which is the

“yield” has to be maximised.
Sensitivity analysis is performed in excel using
solver and the reports are obtained.
The variables are defined in the following way:
Submitted by:
S1 = Liquid SAP 1
Ratan Prasad S2 = Liquid SAP 2
PRN: 20020141163 S3 = Liquid SAP 3
Division: HR, C .
.
.
.
.
Sn = Liquid SAP n
2
 MODELLING PHASE

Formulation as a mathematical model:

 Variables:
S1 = Quantity of Liquid SAP 1 to be allocated
S2 = Quantity of Liquid SAP 2 to be allocated
S3 = Quantity of Liquid SAP 3 to be allocated
.
.
.
.
.
Sn = Quantity of Liquid SAP n to be allocated

 Objective Function:
S1 = Yield of SAP Liquid 1, S2 = Yield of SAP Liquid 2, S3=Yield of SAP Liquid 3 ………. Sn=Yield of SAP
Liquid n
Therefore, Objective function = Y1S1+Y2S2+Y3S3+…..+YnSn

 Constraints:
Yield will have no contraints.
Allocation should always be = 100%
S1+S2+O3+….+Sn=100%
Waste should not go beyond given constraint.
Let W1=Waste of SAP Liquid 1, W2=Waste of SAP Liquid 2, W3=Waste of SAP Liquid 3 …… Wn=Waste
of SAP Liquid n
Hence, W1S1+W2S2+W3S3+….+WnSn <= w, where w is the constraint

The Class of the product should be within limits so as to keep quality at check.
Let G1=Class of SAP Liquid 1, G2=Class of SAP Liquid 2, G3=Class of SAP Liquid 3 ……. Gn=Class of SAP
Liquid n
So, G1S1+G2S2+G3S3+….+GnSn <= g, where g is the constraint

The Pricing of the product should be greater than the constraint.

Let P1=Pricing of SAP Liquid 1, P2= Pricing of SAP Liquid 2, P3= Pricing of SAP Liquid 3 ……. Pn= Pricing
of SAP Liquid 1 n
Therefore, P1S1+P2S2+P3S3+….+PnSn <= r, where r is the constraint

3
 Data Collection:

The company has three types of Liquid SAPs with different characteristic profiles. The different Liquid SAPs
produce different amounts Yield, Wastage and Price that are displayed in the following table below:

Rubber Yield (%) Wastage (%) Class Price

Liquid Sap A 3.15% 0.05% 1 48
Liquid Sap B 3.50% 0.065% 3 25
Liquid Sap C 3.41% 0.064% 2 38

Constraint No Constraint 0.063% 2.17 45 100.00%

Algorithm: Validation and Generating Model Solution

To define variables,
Let Liquid SAP 1 = A,
Liquid SAP 2 = B &
Liquid SAP 3 = C

The Objective Definition Maximise:

0.0315A+0.0350B+0.0341C

Definition of constraints:
I. 0.005A+0.0065B+0.0064C <= 0.0063, this is the Wastage
II. A+3B+2C<=2.17, this is the Class
III. 48A+25B+38C=>45, this is the Price
IV. A+B+C=100, this is the Allocation

Linear Programming can be applied as the model has a linear nature involving three variables A, B
and C. Upon running the solver we obtain the following mathematical model

Rubber Yield (%) Wastage Clas Pric Allocation Parameters Values

4
 (%) s e (%)
Objectiv
Liquid e
Sap A 3.15% 0.05% 1 48 7.80% Yield 3.41% Function
Liquid
Sap B 3.50% 0.065% 3 25 24.80% Wastage 0.06%
Liquid
Sap C 3.41% 0.064% 2 38 67.40% Class 2.17
Price 35.556
Constrain No 2.1 Total
t Constraint 0.063% 7 45 100.00% Allocation 1

Sensitivity Analysis and Model Validation

Variable Cells
    Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$H$3 Liquid Sap A Allocation (%) 0.078 0 0.0315 0.0017 0.0118
$H$4 Liquid Sap B Allocation (%) 0.248 0 0.035 0.0017 0.0007375
$H$5 Liquid Sap C Allocation (%) 0.674 0 0.0341 0.000694118 0.00085

Constraints
    Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$D$12 Wastage Values 0.00063 11.33333333 0.00063 1.17E-05 5.055E-05
$D$13 Class Values 2.17 0.000786667 2.17 0.594705882 0.2325
$D$14 Price Values 35.556 0 45 1E+30 9.444
$D$15 Total Allocation Values 1 0.025273333 1 0.127974684 0.018870968

The Sensitivity Report subtleties what changes in the coefficients of the target work mean for the
arrangement and how changes in the constants on the correct hand side of the limitations influence
the arrangement.

This affectability report gives us data identifying with:

changing the target work forcing a variable which is as of changing the right-hand side of
coefficient for a variable now zero to be non-zero a requirement

5
In numerical improvement, Lagrange multiplier is a system for tracking down the nearby maxima and
minima of a capacity subject to uniformity requirements (i.e., subject to the condition that at least
one conditions must be fulfilled precisely by the picked estimations of the factors).

Lagrange multipliers is truly a calculation that discovers where the slope of a capacity focuses similar
way as the inclinations of its imperatives, while additionally fulfilling those limitations. The estimation
of the Lagrange multiplier at the arrangement of the issue is equivalent to the pace of progress in the
maximal estimation of the target work as the imperative is loose.

POST-MODELLING PHASE

Data Interpretation & Decision Making

The goal of the our association is to maximize the yield generated alongside limiting the wastage and residue
that is produced from consuming the Liquid SAP settled numerically through Linear programming with the
assistance of Solver in MS Excel to discover the advanced qualities.

The ideal measure of every one of the Liquid SAP 1, Liquid SAP 2 and Liquid SAP 3 that ought to be used to
accomplish our goal are appeared beneath:

Allocation
Rubber Yield (%) Wastage (%) Class Price (%)
Liquid Sap A 3.15% 0.05% 1 48 7.80%
Liquid Sap B 3.50% 0.065% 3 25 24.80%
Liquid Sap C 3.41% 0.064% 2 38 67.40%

Implement, Monitor & Control

In light of the arrangement introduced by the solver, the organization can carry out the above shown model
and accomplish their target of boosting the yield, optimize the price and reduce the cost, wastage and residue.
As the organization utilizes three kinds of Liquid SAPs it can carefully plan to use those in ideal sum and ensure
its goal are accomplished.

The organization can screen and control the amount as per the model and run a pilot to check if the
hypothetical viewpoints are meeting the useful necessities.

The amounts of the Liquid SAP utilized of the three assortments should be ceaselessly checked and friends can
anticipate utilize more methodologies in order to decrease the outflow of hurtful parts to accomplish both
benefit and manageability.