Operations Research-I

Group 1C
Isha Bhargava Asawari Joshi Manik Kapur Manimozhimaran S
Sarnab Guha Shefali Gairola
 Introduction
• Service Operations as a major part of world economy
• Service- A time perishable, intangible experirnce performed for a customes
acting as a co-producer
• Contribution- 54.17% of India’s Gross Value Added
• Net Service exports- US$ 60.25 billion for a period of 9 months in 2018
• Services Purchasing Managers’ Index(PMI) stood at 50.2 in May 2019
 Ride-hailing services
• 43% of the people in India have used an app-based ride-hailing services for
their transportation needs according to a recent survey on app-based ride-
hailing in India conducted by J.D. Power
• The ride- hailing segment in India generated $371 million in revenues in
2018, growing at the rate of 19.6% CAGR
• By 2022, the adoption and penetration of ride-hailing services is set to
rise to 3.9% with 58.4 million users
 Objectives
• Uber is the world’s largest ride-sharing platform, and is constantly expanding its operations in
different geographies. In course of its operations, Uber generates a lot of data pertaining to its
bookings
• We aim to maximize revenues given the plethora of players in the market
• Uber to maximize its market has been launching its services across various cities in India, one of
them being Coimbatore
• We have a dataset where there are records of a number of Uber bookings and cabs in four
locations in Coimbatore - Avinashi Road, Central Coimbatore, Ram Nagar and Gandhipuram.
• We aim to analyze the corresponding supply and demand data for various bookings, and apply
appropriate methods to arrive at an optimum solution for the situation
 Data & Constraints
The data consists of 3626 points with a total collection of 190 cabs and drivers.
The constraints set to maximize profits are as such:
• Minimum total number of cars in an area should be 30
• Minimum total number of cabs in an area should be 40% of total cabs
assigned to the area (50)
• Total number of cars in weekday to be less than total number of drivers
(190)
• Drivers should have a minimum number of daily trips (1)
• Drivers should have a maximum number of daily trips (10)
 Analysis
Objective: We want to maximise the revenue for Uber bookings in four locations in Coimbatore.
The dataset we have contains bookings data for cabs from four locations – Avinashi Road, Central
Coimbatore, Ram Nagar and Gandhipuram.
Method Used: LPP (Revenue Maximisation) using Solver
• We have assumed that there are 50 cars in a location.
• Before calculating the required revenue, we need to set the constraints that we have applied to the
problem.
Constraints:
• The total number of cars in a location should be at least 30
• Total number of cars in a location should be at least 40% of the total cars (50) in the city
• Total no. of cars on a weekday to be less than the total no. of drivers (190)
• Drivers should have a minimum number of daily trips (1)
• Drivers should have a maximum number of daily trips (10)

• We cleaned the data and calculated the average revenue for each location for each day of the
weekdays. Then, we used solver and applied all the constraints above stated into it. From the
solver, we got the optimum number of cars required in each location. Then, we multiplied the
numbers with the average revenue generated per ride for each location to get the maximum
revenue for each week, which is Rs. 3,07,412.
• We also calculated the optimum number of trips a driver needs to take to generate maximum
revenue for Uber.

• To calculate the optimum number of trips that a driver needed to take for maximum revenue
generation, we calculated the number of trips from each location for each of the five weekdays.
Then, we divided it with the optimum number of cars that were required in a location for
maximum revenue generation. This way, we could calculate the optimum number of trips that
each driver needed to take. The constraint for this is that a driver needs to take at least 1 trip in a
day, and at most, 10 trips in a day.

Microsoft Excel
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