CDM Agriculture

Team MJ

BIZ NEETI
 Problem Statement

Demand city wise The crux of the problem is satisfying demand with minimum expenditure

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 Ambiguity in Question

If we assume 10 Lakh for each tonne then 1000000* 500 = 500000000

So we can fulfil only 500 tonnes of demand

Then we will select the demand to be fulfilled on the basis of parameters such as

Certainty of Demand

Distance from the production unit and supply the rest with general raw material

Instead of pre processed food items .

Or,

So we can assume 10 Lakh for 50 tonnes each

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Methodology

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 Making Clusters
Varanasi Plant - I Vadodara Plant - II Bangalore Plant – III

Delhi
Jaipur Mumbai Mangalore
Kanpur Pune Hyderabad
Lucknow Nagpur Vishakapatnam
Patna Surat Chennai
Bhopal Ahmedabad
Indore

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 Location Selection

Why
Trade-off Between new plant setup cost and transportation cost

Worst case scenario transportation cost

= Demand * Cost per tonne per Kilometer* distance

Total cost of transportation should not exceed new plant’s setting up cost
otherwise it would be more sensible to start a new plant

Tier 2 cities are preferred so as to ensure cheap resources

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Calculations

*calculations in attached excel

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 THANK YOU
Indian Institute of Technology, Kanpur