ordering cost holding cost shortage cost

Man 10000 0.75 2

Ret 12500 1 2.5

Week Qty demanded -reqty manufacture retailer order

21666.67 1 8000 5000 17000
11324.42 2 23000 30000 11000
3 32000 10000 26000
18545.45 4 13000 10000 15000
9616.274 5 10000 6000 5000
6 23000 30000 14000
7 38000 40000 40000
8 18000 15000 20000
9 12000 1000 10000
10 28000 20000 26000
11 42000 30000 20000
12 13000
 cap/man/week 50000
Man inv 15000
ret inv 10000
lead time 1

retailer shortage retailer hold Mnaufacture shortage Mnu hold

0 2000 2000 0
4000 0 34000
0 5000 0 18000
0 7000 0 13000
0 2000 0 14000
7000 0 0 0
8000 0 10000 0
0 2000 0 35000
0 0 0 26000
0 0 0 0
22000 0 0 0
Plant ------> WH -------> Market
(e) (j)
Fe FC of locating WH at site (e) Transp cost 15
Small Large
Capacity 300000 600000
FC 300000 500000
66240 13566
Decision var ye=1 if WH is located at e, 0 otherwise
Small WH
Ahmedabad Ludhiana Indore Lucknow Vijayawada Bhubaneswar Coimbatore
ye 0 0 1 0 1 0 0
Distance 0 950 395 990 1155 1380 1435
Units transp 121143 208376 233760 3 2.86E+05 313029 136290
Units * bin 0 0 233760 0 286434 0 0
No of trucks 0 0 19 0 23 0 0
Which WH supplies which market
Small
Ahmedabad Ludhiana Indore Lucknow Vijayawada Bhubaneswar Coimbatore
Bangalore 0 0 0 0 0 0 0
Chennai 0 0 1 0 1 0 0
Delhi 0 0 0 0 0 0 0
Jaipur 0 0 1 0 1 0 0
Mohali 0 0 1 0 0 0 0
Mumbai 0 0 1 0 1 0 0
Hyderabad 0 0 0 0 0 0 0
Kolkata 0 0 1 0 1 0 0

Decision var, which WH supplies how many to each market

Small
Ahmedabad Ludhiana Indore Lucknow Vijayawada Bhubaneswar Coimbatore
Bangalore 0 195115 0 12566 0.00E+00 30580 0
Chennai 436 0 10483 211735 51328 35497 7910
Delhi 0 106380 0 2960 0 4564 345248
Jaipur 0 0 16154 3011 82514 18255 0
Mohali 198230 0 105072 0 0 34553 5040
Mumbai 0 0 61953 0 67744 7294 34535
Hyderabad 0 0 0 1971 0 54345 96495
Kolkata 156118 0 40096 43 84847 142700 5903
WH to mkt 0 0 233758 0 286433 0 0

Distance matrix
Small
 Ahmedabad Ludhiana Indore Lucknow Vijayawada Bhubaneswar Coimbatore
Bangalore 1265 2005 1100 1580 515 1140 230
Chennai 1410 2035 1170 1535 390 950 425
Delhi 790 285 660 430 1390 1230 1955
Jaipur 525 450 475 580 1290 1260 1780
Mohali 945 30 890 640 1650 1475 2195
Mumbai 545 1705 595 1365 980 1510 1265
Hyderabad 885 1520 635 1095 295 810 720
Kolkata 1640 1525 1250 865 1025 400 1740

Total FC 1600000
Transp cost 2797500
Total cost 4397500 0.636157

Small
Ahmedabad Ludhiana Indore Lucknow Vijayawada Bhubaneswar Coimbatore
Bangalore 0 0 0 0 0 0 0
Chennai 0 0 10483 0 51328 0 0
Delhi 0 0 0 0 0 0 0
Jaipur 0 0 16154 0 82514 0 0
Mohali 0 0 105072 0 0 0 0
Mumbai 0 0 61953 0 67744 0 0
Hyderabad 0 0 0 0 0 0 0
Kolkata 0 0 40096 0 84847 0 0

No of trucks needed Small

Ahmedabad Ludhiana Indore Lucknow Vijayawada Bhubaneswar Coimbatore
Bangalore 0 0 0 0 0 0 0
Chennai 0 0 1 0 5 0 0
Delhi 0 0 0 0 0 0 0
Jaipur 0 0 2 0 7 0 0
Mohali 0 0 9 0 0 0 0
Mumbai 0 0 5 0 6 0 0
Hyderabad 0 0 0 0 0 0 0
Kolkata 0 0 4 0 7 0 0

1 box 50 jerseys
I box 20 kg
1 truck 5 tons 5000 kg or
Cost of freig 15 per km per truck 1 truck 250 boxes
1 truck 12500 jerseys
The warehouses have a capacity of 1800000 and are capable of satisfying till 2012. After that one more WH can
accurate at a later point of time and this method is a bit flexible This also makes sure that we are ope
Since the distance is the most important factor in the transp cost, we could say that irrespective of the qty dema
subject to capacity The qty transp and milk run solns would only change for each year which will not affect

Distance saved
1080
925
680
1060
230
1980
5955 89325 0.044354
per km

9732 26007

Large WH sum of units Demand

Ahmedabad Ludhiana Indore Lucknow Vijayawada Bhubaneswar Coimbatore
1 0 1 0 0 0 0
0 950 395 990 1155 1380 1435
590268 0 573993 0 0 0 120989 0
590268 0 573993 0 0 0 0 1684455 1210000
48 0 46 0 0 0 0
0.3921116 474455
Large
Ahmedabad Ludhiana Indore Lucknow Vijayawada Bhubaneswar Coimbatore
1 0 1 0 0 0 0
1 0 1 0 0 0 0
1 0 1 0 0 0 0
0 0 1 0 0 0 0
1 0 1 0 0 0 0
1 0 1 0 0 0 0
0 0 1 0 0 0 0
0 0 1 0 0 0 0

Large
Ahmedabad Ludhiana Indore Lucknow Vijayawada Bhubaneswar Coimbatore Sum Demand
33280 200955 96720 12569 1669 9866 1664 130000 130000
223359 2004 53625 211734 1544 2452 149859 338795 155000
190657 254 146446 2959 25494 1313 3389 337103 172000
0 1400 43715 3014 240044 13123 3214 142383 142000
130563 0 19696 1579 2804 131 3629 255331 143000
9824 2655 44238 2529 2134 13133 2699 183759 175000
0 2470 135190 1974 1449 131145 112154 135190 134000
0 2475 34358 2569 2179 666422 3175 159301 159000
587683 0 573988 0 0 0 0 1681862 1210000

Large
Ahmedabad Ludhiana Indore Lucknow Vijayawada Bhubaneswar Coimbatore
1265 2005 1100 1580 515 1140 230
1410 2035 1170 1535 390 950 425
790 285 660 430 1390 1230 1955
525 450 475 580 1290 1260 1780
945 30 890 640 1650 1475 2195
545 1705 595 1365 980 1510 1265
885 1520 635 1095 295 810 720
1640 1525 1250 865 1025 400 1740

Large
Ahmedabad Ludhiana Indore Lucknow Vijayawada Bhubaneswar Coimbatore Sum Demand
33280 0 96720 0 0 0 0 130000 130000
223359 0 53625 0 0 0 0 338795 155000
190657 0 146446 0 0 0 0 337103 172000
0 0 43715 0 0 0 0 142383 142000
130563 0 19696 0 0 0 0 255331 143000
9824 0 44238 0 0 0 0 183759 175000
0 0 135190 0 0 0 0 135190 134000
0 0 34358 0 0 0 0 159301 159000

No of trucks needed Large

Ahmedabad Ludhiana Indore Lucknow Vijayawada Bhubaneswar Coimbatore
3 0 8 0 0 0 0
18 0 5 0 0 0 0
16 0 12 0 0 0 0
0 0 4 0 0 0 0
11 0 2 0 0 0 0
1 0 4 0 0 0 0
0 0 11 0 0 0 0
0 0 3 0 0 0 0
till 2012. After that one more WH can be added as per the requirements. The demand forecast will also be more
This also makes sure that we are open to any new IPL teams in the future
d say that irrespective of the qty demanded at each market, the WH that serves a particular market would still be same
ge for each year which will not affect WH location decision
Capacity av
1800000