DECISION SCIENCE II - END TERM
PROJECT
L O G I S T I C
Presented By (Group 14):
Akshita Aggarwal (2110072)
Anas Ansari (2110074)
Sethu Parvathy (2110116)
Souvik Biswas (2110122)
Varshitha Noone (2110129)
S
SUBMITTED BY,
GROUP 10
AKSHITA AGGARWAL_2110072
ANAS ANSARI_2110074
SETHU PARVATHY_2110116
SOUVIK BISWAS_2110122
VARSHITHA NOONE_2110129
PROBLEM STATEMENT 

L O G I S T I C S

Compressed Natural gas (CNG) is a clean-burning fuel that has a significant influence on the environment.
Biogas plants have been constructed around the state by the Government of Punjab. AlZ Logistics Ltd. has
been tasked with managing the logistics of transport at the lowest possible cost to the necessary depot
locations in order to optimally meet demand.

Sangrur Bio Plant and Bathinda Bio Plant are serving to 3 locations - Ludhiana, Patiala and Ambala. The
distances to these locations are known and the transportation cost is estimated for one year, for 2 way
transportation with per Km cost as Rs. 27/-. The demands of these locations are also known, which is greater
than the supply. Hence the optimal distribution system with minimal operational cost has to be established.
LINEAR PROGRAMMING MODEL

Ludhiana

𝑥 11 Punjab

Sangrur Bio
Plant 𝑥12
Patiala
𝑥13
𝑥 21
𝑥 22
Bathinda 𝑥2 3 Ambala
Biogas Plant
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TRUCKLOAD REQUIREMENTS AT PLANT & DEPOT
DISTANCE TO DEPOT & TRANSPORTATION COST

Transportation cost = distance*2 (way)*months (12) *27(per Km cost of transporting

CNG)/1000000
OBJECTIVE FUNCTION,DECISION VARIABLES
& CONSTRAIN (Without Dummy)
OBJECTIVE FUNCTION :
Minimize (cost in Million Rs.)

X11C11+ X1C12+ X13C13+ X21C21+ X22C22+ X23C23

Xij - Quantity to be transported
Cij - Cost of transportation
ANSWER & SENSITIVITY REPORT (Without Dummy)
 OBJECTIVE FUNCTION,DECISION VARIABLES
& CONSTRAIN (With Dummy)
OBJECTIVE FUNCTION :
Minimize (cost in Million Rs.)

X11C11+ X1C12+ X13C13+ X21C21+ X22C22+ X23C23

X31C31+X32C32+X33C33
Xij - Quantity to be transported
Cij - Cost of transportation
ANSWER & SENSITIVITY REPORT (With Dummy)
CONCLUSION
● For the problem statement (minimization of transportation
cost & meeting demand) we used both Minimum Function
& Dummy Approach.
● With both the approaches, we arrived at an optimal value of
10.917.
● Since demand of CNG is greater than its supply, The
excess of demand (444 - 336)= 108 remains unmet. In the
first case we did not make use of a dummy variable, hence
the 108 remains unassigned, using Min. Function. In the
second case, we assign a dummy variable and the same
amount of CNG (108 Metric tons) gets assigned to the
dummy plant.
● A negative shadow price (sensitivity analysis report) means
that an increase in the corresponding slack variable
results in a decreased cost. If the slack variable
decreases, then it results in an increased cost
THANK YOU!!!