MCL756: Supply Chain Management/Assignment 3/ Marks: 100/ DoS: 11 Sep 2023
Note
a) Submit the pdf copy of your response through Moodle only. This assignment contains Excel based formulations. Use
excel solver to solve them, BIUT include the entire response of this assignment as a SINGLE PDF file only.
b) The first page of your response sheet should include.
Name of your group
Sn
Entry number
Name of
member
Assignment No
Specific contribution in the
assignment
Comment (if any)
Pl mention if someone
has NOT contributed
1
2
n
Please note the following:
Question
No
1(a)
1(b)
2 (a to d)
3(a)
3(b)
3(c)
3(d)
Word limit
Marks
No Limit
No Limit
No Limit
No Limit
No Limit
2000
1500
5
5
15
5
10
10
6
Question
No
3(e)
4(a)
4(b)
4(c)
5(a)
5(b)
5(c)
Word Limit
Marks
1000
No limit
1000
1500
2000
2000
1000
4
6
4
5
10
10
5
*You may refer to web resources given in the reference section of this assignment”.
Part A
1. a) Consider the following LPP regarding Three different products A, B and C to be machined, assembled
and sold in the market by Apex Ltd (AL).
Max Z= 350A+ 470B+610C
Subject to
A+B < 120 (Machine capacity)
C< 48 (Assembly hours)
10 A+ 15 B+ 20C < 2000 (Labor hours)
A, B, C > 0
i)
Find the optimal solution using Excel solver.
ii)
Interpret the shadow prices associated with all the constraints.
iii)
Interpret the reduced costs associated with each decision variable.
[Marks 2+2+1=5]
b) The sales team of AL feels that market is quite favorable, and the sales team can sale these products
according to the following forecasts.
Product
Minimum quantity that can be sold (units)
Maximum quantity that can be sold(units)
A
20
60
B
20
40
C
20
50
Formulate and solve the above planning problem and interpret the results and compare with results of
(a) part above.
(Attach Excel solution in a single pdf file).
[Marks 2+2+1=5]
2. Consider the following distribution problem involving 3 plants and 4 warehouses. Assume that the unit cost
of distribution as (C11, C12 … C35).
Plant
P
Q
R
Demand by Warehouse (Units)
A
C11
C21
C31
200
B
C12
C22
C32
150
C
C13
C23
C33
200
D
C14
C24
C34
250
Supply (units)
400
300
200
C1j (j=1 to 4) is to be generated (an integer value only) from a discrete uniform distribution U [12, 20]
C2j (j= 1 to 4) is to be generated (an integer value only) from a discrete uniform distribution U [ 15, 20]
C3j (j= 1 to 4) is to be generated (an integer value only) from a discrete uniform distribution U [ 8, 20]
a) Generate the values and write the total transportation matrix in a tabular form.
b) Formulate the above problem.
c) Solve the above problem using Excel-solver to find the optimum cost of distribution. (Attach excel
formulation and output- Convert the excel file into a single pdf file)
d) Interpret the shadow prices for these constraints.
[Marks: 3+3+5+4=15]
3. Consider a LP problem (involving at least 10 variables and 10 constraints) in the domain of SCM. It could
be problem such as Transportation/Distribution/ Product Mix/A fixed charge facility location etc.) Assume
your own data for this problem. You can make any other suitable assumptions. State them clearly. State
the sources of data for your problem clearly.
a) Formulate the problem with values. Explain the context of the problem clearly.
b) Solve the above formulation using excel-solver.
c) Interpret the results from excel output.
d) What kind of sensitivity analysis be useful from SCM point of view? Clearly mention at least 4
scenarios.
e) Explain how the results of the model can be implemented in real life along with the challenges,
if any.
[Marks 5+10+10+6+4=35]
4. Assume the transportation cost data as follows for a distribution system where the products can be
shipped from plant or warehouse.
From/To
I
J
K
L
Plant
Warehouse
Demand
(Units)
14
24
22
24
15
14
21
28
18
20
20
17
Demand centre
M
21.5
8.5
15
N
O
P
19
19.5
13
17
24
15
30
28
Supply
(units)
100
45
20
a) Formulate the above problem and solve the same through excel solver.
b) Explain with the solution of the model, if the capacity of plant is decreased by 10 %, what will be the
impact on total cost?
c) Explain how to incorporate the cross docking facility in the formulation in part (a), What are the
advantages and challenges in cross docking facility. .
[Marks: 6+4+5=15]
5. a) “Out of stock is unpardonable in supply chain and leads to forever loss of both demand and customer”,
says Vinay Dhanani, COO, Zepto . Support or refute this statement and explain the challenges in SC of
companies like Zepto vis-à-vis role of modelling and analysis.
https://retail.economictimes.indiatimes.com/amp/news/food-entertainment/grocery/out-of-stock-isunpardonable-in-supply-chain-zepto-coo/98399022
[Marks: 10]
b) For the ambitious PM Gatishakti programme, explain application of any TWO pillars (the pillars are:
Comprehensiveness, Optimization, Prioritization, Synchronization, Analytical and Dynamic) to a real-life
application from the standpoint of SCM. Please quote the source you are using for real life application.
https://www.india.gov.in/spotlight/pm-gati-shakti-national-master-plan-multi-modal-connectivity
[Marks: 10]
c) Write a set of arguments for favouring waterwaiys over roadways for managing distribution in India.
[Marks: 5]
Part B
Kindly add this section in your submission
i) Learning for individual member in this assignment
Sn
Entry No
Name
Individual learning (write 2-3 bullets each)
1
2
n
ii)
Learning for the entire group:
Pl write 2-3 lines (not more than 30 words!) as a collective group on what did your team learn in this assignment.
Your assignment WILL NOT BE evaluated unless part B is attached in the pdf
References
https://startuptalky.com/amul-case-study/
https://www.thinkwithniche.com/blogs/details/a-case-study-of-amul-the-taste-of-india
https://iide.co/case-studies/amul-marketing-campaign-case-study/
https://thedigitalyug.com/business/learn-business-management-best-amul-case-study-model
https://www.epw.in/journal/2010/44-45/50-years-ago/50-years-ago-amul-cheese-and-baby-food.html