Decision Analysis Assignment

Food Corporation of India

GROUP 3, SECTION F Amritansh Gupta Dilip Monson Ishita Singh Jitesh Ketkar Prithvi Teja Subhanan Sahoo Surbhi Singh

PROBLEM STATEMENT To find the optimal pattern of rice movement to meet the demands of districts with minimum cost. SOLUTION: We have calculated the cost required for transportation of wheat from supply side to districts/depots (demand side) for fine, coarse and super fine grains separately. ASSUMPTIONS: Total supply from district(s)/depot(s). all the production centers = Total Demand from

We have assumed that the godown capacity is not a constraint for all depot. The distance between Karimnagar and supplier district is calculated using Railway map given. Scale 1 cm= 50 km. Cost from a district to Karimnagar per quintal supply= .05* Km map) (Calculated from

East Godavari West Godavari Krishna Guntur Nizamabad

DECISION VARIABLES FOR FINE GRAINS: SUPPLY VARIABLES(i=1 to 10)

Cost to Karimnaga r 17.25 13.625 15.25 12.75 4

x1i= Quantity of rice/ paddy in tonnes supplied by East Godavari to district i x2i= Quantity of rice/ paddy in tonnes supplied by West Godavari to district i x3i= Quantity of rice/ paddy in tonnes supplied by Krishna to district i x4i= Quantity of rice/ paddy in tonnes supplied by Guntur to district i x5i= Quantity of rice/ paddy in tonnes supplied by Nizamabad to district i Where i can be any one of the 10 districts given below The 10 districts are: Vishakhapatnam, Kurnool, Anantpur, Cuddapah, Chittoor, Hyderabad, Khammam, Adilabad, Karimnagar

CONSTRAINTS NON-NEGATIVITY CONSTRAINTS Xij>=0 (i=1 to 5) (j=1 to 10) SUPPLY CONSTRAINTS(i=1 to 10) 1. Total supply from East Godavari

x1i=60000 2. Total supply from West Godavari

x2i =70000
3.

Total supply from Krishna

x3i =20000 4. Total supply from Guntur

x4i =25000 5. Total supply from Nizamabad

x5i=0 Demand CONSTRAINTS FOR FINE GRAINS(For i=1 to 5)

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

xi1=80000 (Vishakhapatnam) xi2=10000 (Kurnool) xi3=50000 (Anantpur) xi4=5000 (Cuddapah)

xi5=10000 (Chittoor) xi6=20000 (Hyderabad) xi7=0 xi8=0 xi9=0 xi10=0 (Warrangal) (Khammam) (Adilabad) (Karimnagar)

COST FUNCTION Cfine grain= i=1 to 5j= 1 to 10(Cij*xij) By using Solver, we have determined that the minimum cost function for transportation of fine grains is 1467465. (Please refer the excel sheet for the detailed solution)

DECISION VARIABLES FOR COARSE GRAINS: NON-NEGATIVITY CONSTRAINTS yij>=0 (i=1 to 5) (j=1 to 10) SUPPLY VARIABLES(i=1 to 10) y1i= Quantity of rice/ paddy in tonnes supplied by East Godavari to district i y2i= Quantity of rice/ paddy in tonnes supplied by West Godavari to district i y3i= Quantity of rice/ paddy in tonnes supplied by Krishna to district i y4i= Quantity of rice/ paddy in tonnes supplied by Guntur to district i y5i= Quantity of rice/ paddy in tonnes supplied by Nizamabad to district i Where i can be any one of the 10 districts given below The 10 districts are: Vishakhapatnam, Kurnool, Anantpur, Cuddapah, Chittoor, Hyderabad, Khammam, Adilabad, Karimnagar CONSTRAINTS SUPPLY CONSTRAINTS(i=1 to 10) 1. Total supply from East Godavari

y1i=0 2. Total supply from West Godavari

y2i =50000 3. Total supply from Krishna

y3i =80000 4. Total supply from Guntur

y4i =45000 5. Total supply from Nizamabad

y5i=10000 Demand CONSTRAINTS FOR FINE GRAINS(For i=1 to 5)

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

yi1=0 (Vishakhapatnam) yi2=30000 (Kurnool) yi3=50000 (Anantpur) yi4=5000 (Cuddapah)

yi5=20000 (Chittoor) yi6=30000 (Hyderabad) yi7=5000 (Warrangal)

yi8=10000 (Khammam) yi9=10000 (Adilabad) yi10=25000 (Karimnagar)

COST FUNCTION CCoarse= i=1 to 5j= 1 to 10(Cij*xij) In coarse grains, we have considered two possibilities1. Grains have been transported directly by road to Karimnagar from supply centre The cost of transportation of the grains from production centres to districts/depots is given by 1950046 (Please refer excel for detailed soln.)

2. Grains have been transported to one of the depots by train and then transported to Karimnagar The cost of transportation of the grains from production centres to districts/depots is given by 1723100 (Please refer excel for detailed soln.)

Hence, minimum cost of transportation of coarse grains is when grains are passed to Karimnagar via rail.

DECISION VARIABLES FOR SUPER FINE GRAINS: NON-NEGATIVITY CONSTRAINTS zij>=0 (i=1 to 5) (j=1 to 10) SUPPLY VARIABLES(i=1 to 10) z1i= Quantity of rice/ paddy in tonnes supplied by East Godavari to district i z2i= Quantity of rice/ paddy in tonnes supplied by West Godavari to district i z3i= Quantity of rice/ paddy in tonnes supplied by Krishna to district i z4i= Quantity of rice/ paddy in tonnes supplied by Guntur to district i z5i= Quantity of rice/ paddy in tonnes supplied by Nizamabad to district i The 10 districts are: Vishakhapatnam, Kurnool, Anantpur, Cuddapah, Chittoor, Hyderabad, Khammam, Adilabad, Karimnagar CONSTRAINTS SUPPLY CONSTRAINTS(i=1 to 10) 1. Total supply from East Godavari

z1i=20000 2. Total supply from West Godavari

z2i =20000 3. Total supply from Krishna

z3i =30000 4. Total supply from Guntur

z4i =0 5. Total supply from Nizamabad

z5i=0 Demand CONSTRAINTS FOR FINE GRAINS(For i=1 to 5)

1.

zi1=20000 (Vishakhapatnam)

2. 3. 4. 5. 6. 7. 8. 9. 10.

zi2=0 zi3=0 zi4=0 zi5=0

(Kurnool) (Anantpur) (Cuddapah) (Chittoor)

zi6=50000 (Hyderabad) zi7=0 zi8=0 zi9=0 zi10=0 (Warrangal) (Khammam) (Adilabad) (Karimnagar)

COST FUNCTION Csuper fine= i=1 to 5j= 1 to 10(Cij*xij) By using Solver, we have determined that the minimum cost function for transportation of fine grains is 628150. (Please refer the excel sheet for the detailed solution
OBJECTIVE FUNCTION Minimum transportation costs(Z)

Zmin= Cfine grain+ CCoarse + Csuper fine

= =

1467465+1723100+628150 3818715