MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

SCHOOL OF INTERNATIONAL BUSINESS – MARKETING


PRACTICE FOR GROUP WORK WEEK 2

COURSE NAME: ERP (SCM)

A CASE STUDY:

CASE 2: ASSIGNING PLANTS TO PRODUCTS

(BETTER PRODUCTS COMPANY)

GVHD: ThS. HOÀNG NGỌC NHƯ Ý

THÀNH VIÊN: Nhóm 3
Nguyễn Khôi Nguyên – 31191025279
Trần Viễn Xứ – 31191025895
Nguyễn Ngọc Hằng – 31191023272
Tống Khánh Linh – 31191025687
Hoàng Nguyễn Ngọc Linh – 31191026616
LỚP HỌC PHẦN: 21D1BUS50313105

Ho Chi Minh City, January 23rd, 2021

 TABLE OF CONTENTS
CASE 2.1 – ASSIGNING PLANTS TO PRODUCTS (BETTER PRODUCTS
COMPANY)............................................................................................................................................3
1.1. Summary................................................................................................................................................3
1.2. Case Solver............................................................................................................................................3
1.2.1. Constraints......................................................................................................................3
1.2.2. Excel Solver....................................................................................................................3
1.2.3. QM for Windows V5......................................................................................................5
CASE 2.2 – ASSIGNING PLANTS TO PRODUCTS (BETTER PRODUCTS
COMPANY)............................................................................................................................................5
2.1. Summary................................................................................................................................................5
2.2. Case Solver............................................................................................................................................5
2.2.1. Constraints......................................................................................................................5
2.2.2. Excel Solver....................................................................................................................6
2.2.3. QM for Windows V5......................................................................................................7
THE JOB SHOP CASE STUDY...........................................................................................................7
3.1. Summary................................................................................................................................................7
3.2. Case Solver............................................................................................................................................8
3.2.1. Constraints......................................................................................................................8
3.2.2. Excel Solver....................................................................................................................8
3.2.3. QM for Windows V5....................................................................................................10

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 PRACTICE FOR GROUP WORK WEEK 2
Case 2.1 – ASSIGNING PLANTS TO PRODUCTS (BETTER PRODUCTS
COMPANY)
1.1. Summary
Units of a commodity Number of units produced per day
Sources
Plant 1; Plant 2; Plant 3
(Plants)
Destinations
Product 1; Product 2; Product 3; Product 4
(Products)
Supply from a source
(Capacity Available)
Demand at a destination
Table case 2.1
(Required Production)
Costs per unit produced in a
plant
Table case 2.1 – The Data for the Better Products Co. Problem Formulated as a Variant
of a Transportation Problem

1.2. Case Solver

1.2.1. Constraints
- Total capacity available (Supply) > Total required production (Demand): 195 > 120,
so:
X11 + X12 + X13 + X14 <= 75
X21 + X22 + X23 + X24 <= 75
X31 + X32 + X33 + X34 <= 45
X11 + X21 + X31 = 20
X12 + X22 + X32 = 30
X13 + X23 + X33 = 30
Solver Parameters X14 + X24 + X34 = 40
Set Objective Cell: Total Cost
- Plant 2 cannot produce
To: Min
Product 3:
By Changing Variable Cells:
X23 = 0
Product Quantity
1.2.2. Excel Solver
Subject to the Constraints:
Total Units produced in Plant <= Capacity
Available
Total Units of Product = Required Production
E15 = 0 3
Solver Options:
Make Variables Nonnegative
Solving Method: Simplex LP
Range Name Cells
Required Production C19:F19
Product Quantity C14:F16
Capacity Available I14:I16
Total Cost I20
Total Units produced in Plant G14:G16
Total Units of Product C17:F17
Unit Cost C6:F8

Result: Total Cost = $3,260

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1.2.3. QM for Windows V5

Result: Total Cost = Solution value = $3,260 million.

 Conclusion:
Minimizing the total cost for producing units of product per day is $3,260, including:
- Plant 1: 30 units of product 2, 30 units of product 3
- Plant 2: 15 units of product 4
- Plant 3: 20 units of product 1, 25 units of product 4
Case 2.2 – ASSIGNING PLANTS TO PRODUCTS (BETTER PRODUCTS
COMPANY)
2.1. Summary
Units of a commodity Number of units produced per day
Sources
Plant 1; Plant 2; Plant 3
(Plants)
Destinations
Product 1; Product 2; Product 3; Product 4
(Products)
Supply from a source
(Total Assignments)
Demand at a destination
Table case 2.2
(Total Assigned)
Costs per unit produced in a
plant
Table case 2.2 – Data for the Better Products Co. Problem

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2.2. Case Solver
2.2.1. Constraints
- Sum of Total Assignments (Supply) = Sum of Total Assigned (Demand) = 4 units, so:
X11 + X12 + X13 + X14 = 2
X21 + X22 + X23 + X24 = 1
X31 + X32 + X33 + X34 = 1
X11 + X21 + X31 = 1
X12 + X22 + X32 = 1
X13 + X23 + X33 = 1
X14 + X24 + X34 = 1
- Plant 2 cannot produce Product 3:
X23 = 0
2.2.2. Excel Solver
Solver Parameters
Set Objective Cell: Total Cost
To: Min
By Changing Variable Cells:
Product Quantity
Subject to the Constraints:
Total Units produced in Plant = Total Assignments
Total Units of Product = Total Assigned
E15 = 0
Solver Options:
Make Variables Nonnegative
Solving Method: Simplex LP

Range Name Cells

Total Assigned C19:F19
Product Quantity C14:F16
Total Assignments I14:I16
Total Cost I20
Total Units produced in Plant G14:G16
Total Units of Product C17:F17
Unit Cost C6:F8

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Result: Total Cost = $3,290/day
2.2.3. QM for Windows V5

Result: Total Cost = Solution value = $3,290/day

 Conclusion:
Minimizing the total cost for producing units of product is $3,290/day, including:
- Plant 1: 1 unit of product 2; 1 unit of product 3
- Plant 2: 1 units of product 1
- Plant 3: 1 unit of product 4
THE JOB SHOP CASE STUDY
3.1. Summary
Units of a commodity Locations
Sources
Machine 1; Machine 2; Machine 3
(Machines)

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 Destinations
Location 1; Location 2; Location 3; Location 4
(Locations)
Supply from a source
(Available)
Demand at a destination
Table case 2.3
(Needed)
Costs per hour of materials
handling
Table case 2.3 – Materials-Handling Cost Data for the Job Shop Co. Problem

3.2. Case Solver

3.2.1. Constraints
- Total Available (Supply) < Total Needed (Demand), so:
X11 + X12 + X13 + X14 + X15 = 1
X21 + X22 + X23 + X24 + X25 = 1
X31 + X32 + X33 + X34 + X35 = 1
X11 + X21 + X31 <= 1
X12 + X22 + X32 <= 1
X13 + X23 + X33 <= 1
X14 + X24 + X34 <= 1
X15 + X25 + X35 <= 1
- Location 2 is not considered suitable for machine 2, so no cost is given for this case:
X22 = 0
3.2.2. Excel Solver
Solver Parameters
Set Objective Cell: Total Cost
Range
To: MinName Cells
Needed
By Changing Variable Cells: C19:G19
Location Quantity
Location Quantity C14:G16
Available
Subject to the Constraints: H14:H16
TotalTotal
Cost Machines = AvailableJ20
TotalTotal
Machines
Locations = Needed I14:I16
TotalD15
Locations
=0 C17:G17
Cost PerOptions:
Solver Hour C6:G8
Make Variables Nonnegative
Solving Method: Simplex LP
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Result: Total Cost = $31
3.2.3. QM for Windows V5

Result: Total Cost = Solution value = $31

 Conclusion:
Minimizing the total cost of assigning the new machines to the available locations is $31,
including:
- Machine 1: Location 4
- Machine 2: Location 3
- Machine 3: Location 1

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