Group 6B:

Jigar Ajagiya
Nandita Sugandhi
Vinod Madaka
Mohammed Abdullah
Kuvam Bansal
Muthu Siddharthan
Roopteja Tamatam
Bhupendra Sakia
 Project Brief
IIT Bombay is a small township in itself. An island of green in the
otherwise concrete jungle that is Mumbai, the campus at Powai
nestles among hills and is flanked by the Powai and Vihar lakes.
Most facilities are available on campus itself, including banks, a
shopping centre, two excellent schools for children, and a well-
equipped hospital. All students and most faculty live on campus, in
student hostels and IIT staff quarters. IIT Campus has many hostels
and we try to minimize the cost of most frequently used item,
Flour, through EOQ Model.
Considering the new design of the hostels being made, each hostels
consists of three wings. Each wing has its independent building of 10
floors. Each floor has 18 rooms of double occupancy.
Total Rooms : 18 X 10 X 3 = 540
Twin Sharing : 540 X 2 = 1080
Assuming 70% occupancy : 775 People (Approximately)

Mess remains closed for approximately 3 months in an year (May, June

and July)
Weeks it is open in a year : 39 or 273 days
Assuming that 70% of the occupants dine in the mess : 444307
Meals per year
The basic EOQ model is a formula for determining the optimal order size that minimizes the sum of carrying
costs and ordering costs. The model formula is derived under a set of simplifying and restrictive assumptions,
as follows:
Demand is known with certainty and is constant over time.
No shortages are allowed.
Lead time for the receipt of orders is constant.
The order quantity is received all at once. PAGE 2
The function of the EOQ model is to determine the optimal order size that minimizes total inventory costs.
 The total annual ordering cost is computed by
multiplying the cost per order, designated as
Co,times the number of orders per year. Since
annual demand, D, is assumed to be known and
to be constant, the number of orders will be
D/Q, where Q is the order size
Total annual carrying cost is computed by
multiplying the annual per-unit carrying cost,
designated as Cc, multiplied by the average
inventory level. The average inventory level is
one-half of Q or Q/2. The total annual inventory
cost is the sum of the ordering and carrying
costs. The optimal order quantity occurs at the
point where the total cost curve is at a
minimum, which coincides exactly with the point
where the carrying cost curve intersects the
ordering cost curve. This enables us to
determine the optimal value of Q by equating
the two cost functions and solving for Q:
Data Collected and Basic Calculation
Trend Analysis & Linear Regression without compensating for
Occupancy Factor

On first look, it seems that there is a

trend and seasonality factor in the
demand. However, there are a couple
of factors which are responsible for
these fluctuations.
The total occupancy in the hostel
throughout the year is fairly
constant.
Demand directly depends on
number of students in hostel during
any week which keeps on varying
as per holiday seasons.
Compensating for Occupancy Factor
 Trend Analysis & Linear Regression after compensating for
Occupancy Factor
After compensating for occupancy factor, the
demand here is not showing only slight upward
trend over the period of 1 year. This might be
due to increasing demand for wheat items for
breakfast/meals.
Another increment which can be expected for
next year is the increase in total occupancy.
Thus, the demand for all the weeks can be
multiplied by that factor and hence it can be
excluded from forecast.
Also, there is some seasonality visible in the
data. This might be due to the changing number
of guests staying in Hostel-15. We can assume
that this pattern will be followed as the
behaviour of parents/relatives coming to visit
students wont change.
Newly Forecasted Model & Values (Winters Method was
determined to be best by trial and error)
Newly Forecasted Model & Values (Winters Method was
determined to be best by trial and error)
Calculation based on existing plan
As Per EOQ Model (Last Year)
As Per EOQ Model (Upcoming Year)
Comparison of the Two Models