Description
The PPT explaining about Operations Research.
OPERATIONS RESEARCH
PLANNED SHORTAGE
SERVICE INDUSTRY :Welcome group of Hotels plans to open a new 5-Star hotel in Calangute, Goa by the year 2012. According to its marketing division the expected demand for 5-Star accommodation in Goa will be 15,00,000 people per year. Considering their current market share of 12% they plan to set up an optimally sized hotel. Demand peaks approximately 750 per day during October, November and December. Calculate the size of the hotel to be constructed. Overhead costs of maintaining the facility are 1,00,00,000 per year. Welcome group also believes that it can persuade the customers it might have to turn away during the peak season, to return when demand is low, through promotional offers, discounts and attractive packages. The average cost of persuading a customer to come back later is 2000 per customer. Cost of paper work required for ramping up capacity is 1,00,000.
PLANNED SHORTAGE
MANUFACTURING
layhouse World is distributor for a Victorian-style playhouse manufactured in Thailand. If the firm is out of stock of this playhouse, it offers customers a discount of $50 for each week they must wait for delivery. The administrative cost of processing a backorder is estimated to be $10. The playhouses cost the firm $3500 each and sell for $6000 each. Demand averages two units per month. Due to the fairly high cost of preparing customs documents, the cost of placing an order is estimated to be $1500 and an order takes approximately one month to arrive. Playhouse World estimates that the annual holding cost for the Victorian style playhouse is $450. The company wishes to determine how many Victorian playhouses it should order.
DYNAMIC PROGRAMMING
?
The Heinz’s warehouse located in Bhiwandi, Mumbai needs to dispatch the FG to its dealers in Navi-Mumbai by ACE trucks holding 750kg in a single trip.
Item_Code Kg/pack Value (Rs.) X1 200.0 810 X2 250.0 1000 X3 50.0 350 X4 150.0 440 X5 200.0 400 X6 100.0 165 X7 50.0 300 X8 100.0 750 X9 200.0 925 X10 150.0 500
Find the optimal SKU assortment that should be transported in a single trip to maximize the value carried in a trip.
DYNAMIC PROGRAMMING
?
? ?
?
The case of Schneider National which is the largest fleet operator in US-Canada-Mexico. It has 15000 drivers and 40000 truck loads. At any point in time, there will be a set of drivers available to be dispatched and a set of loads that need to be moved. At a point in time we will assign a driver to at most one load. This can easily be modelled as an assignment problem, where the cost of assigning a driver to a load includes both the cost of moving empty to pick up the load, plus the net revenue from moving the load. But, the planning of such a large fleet is done using simulation through dynamic programming approach.
PRODUCTION PLANNING ( LANGRANGE’S)
?
How should Wally think about how much of each style he should order in November?
FORECASTING
Yash Road Line is a local transporter of Pune who maintains a fleet of more than 40 transport vehicles which includes Ace to 35 tonner truck. To enable its smooth daily operation it maintains different types of small spares. It has its own team of technicians who take care of daily maintenance of the trucks.
SALES VS FORECAST
10000000 9000000 8000000 7000000 6000000 5000000 4000000 Sales Forecast
3000000
2000000 1000000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
FORECASTING -II
• The airlines industry has been going under frequent turmoil with very high oil prices and global slump in economy. The sales data of Kingfisher airlines have been analyzed for this.
GROSS REVENUE VS FORECAST
1800 1600
1400
1200
1000 Gross Revenue 800 Forecast
600
400
200
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
RESOURCE ALLOCATION IN PROJECTS
A Project has 7 activities. The relationship between the activities is as under
Activity Preceding Activity Duration days Manpower requirement A B C D A E B F C G D
1
2
2
1
3
2
1
2
1
1
1
1
1
1
On completion of Activities E, F & G , Project is completed
CONSTRANT: Only 3 Persons are available
Resource leveling exercise:
LS=3 LF=3 ES=1 EF=1 2 LS=2 A ES=0 1 B 1 LS=0 LS=1 2 C 2 1-3-6 is critical path 1-2-5-6 has slack of 2 days 1-4-6 has slack of 1 day EF=2 LF=3 D 1 ES=2 3 LF=2 LS=2 E 3 F LF=4 EF=2 5 ES=2 LS=4 G 1 EF=5 EF=4
EF=3
6 EF=5 LF=5
EF=2
ES=2
4 LS=3
2
Resource leveling exercise:
Manpower requirement in every day 2 2 Manpower Requirement Per day/activity 1 1 1 3 1 1 4 1 1 1 5 1 1 1 1
6
Day Manpower
1 4
2 3
3 3
4 2
5 1
The Network diagram is ‘flattened” and drawn on a time scale of weeks
Resource leveling exercise:
Day Manpower 4 Manpower
1 4
2 3
3 3
4 2
5 1
3
2
1
Time RESOURCE HISTOGRAM
Resource leveling exercise:
Activity 1-2 delayed by 1day 2 2 1 1 1 1 1 1 3 4 1 1 5 1 1 1 6 1
Day Manpower
1 2
2 4
3
3
4 3
5
1
RESOURCE REQUIREMENT > AVAILABILITY OF 3 Hence, network needs to be reworked.
Resource leveling exercise:
2 2 1 1 Activity 1-4 Delayed by 1 Day 1 3 2 3 1 1 3 1 4 1 1 1 5 1 1 1 6 1
Day
Manpower
3 3
4 2
5 2
This is Optimum Resource utilization as the availability matches with requirement
GOAL PROGRAMMING(SERVICES)
The Manager of Music World, has 10 full time salesman and 8 part time salesman for selling cds at a store ? Working hour for a full time and a part time sales man are 120 and 60 hours respectively ? As per the performance record the full time salesman sells 5 units per hour while a part time sells 2 units per hour ? The average hourly wage rate for full time employee is 10 and for part time also it is 10 ? Average profit from sales of a cd is Rs.15 ? The sales growth for next month is 7000
?
GOALS
To achieve sales of 7000 ? Limit the overtime of full time salesman to 100 hours ? Minimize the total number of overtime hours ? Manager is twice concerned with full time utilization of full time salesman as with full time utilization of part time employees
?
SOLUTION
GOAL PROGRAMMING (MANUFACTURING)
Heinz , a leading FMCG company manufactures 2 variants of Complan: Chocolate and Strawberry Flavor ? Each variant requires on an average 1 man hour for production ? The normal production capacity of the plant is 40000 man hours ? As per sales department forecast the maximum number of chocolate and strawberry that can be sold in a village is 24000 and 30000 ? Net profit form sales of chocolate and strawberry is 40 and 20
?
GOALS
Avoid any underutilization of manpower capacity ? Maximum possible units of the two variant should be sold. Since the profit from chocolate is double that from strawberry, the manager has twice as much desire to achieve sales for chocolate as for strawberry ? Overtime operation at the plant should be minimum
?
SOLUTION
doc_498862322.pptx
The PPT explaining about Operations Research.
OPERATIONS RESEARCH
PLANNED SHORTAGE
SERVICE INDUSTRY :Welcome group of Hotels plans to open a new 5-Star hotel in Calangute, Goa by the year 2012. According to its marketing division the expected demand for 5-Star accommodation in Goa will be 15,00,000 people per year. Considering their current market share of 12% they plan to set up an optimally sized hotel. Demand peaks approximately 750 per day during October, November and December. Calculate the size of the hotel to be constructed. Overhead costs of maintaining the facility are 1,00,00,000 per year. Welcome group also believes that it can persuade the customers it might have to turn away during the peak season, to return when demand is low, through promotional offers, discounts and attractive packages. The average cost of persuading a customer to come back later is 2000 per customer. Cost of paper work required for ramping up capacity is 1,00,000.
PLANNED SHORTAGE
MANUFACTURING
layhouse World is distributor for a Victorian-style playhouse manufactured in Thailand. If the firm is out of stock of this playhouse, it offers customers a discount of $50 for each week they must wait for delivery. The administrative cost of processing a backorder is estimated to be $10. The playhouses cost the firm $3500 each and sell for $6000 each. Demand averages two units per month. Due to the fairly high cost of preparing customs documents, the cost of placing an order is estimated to be $1500 and an order takes approximately one month to arrive. Playhouse World estimates that the annual holding cost for the Victorian style playhouse is $450. The company wishes to determine how many Victorian playhouses it should order.DYNAMIC PROGRAMMING
?
The Heinz’s warehouse located in Bhiwandi, Mumbai needs to dispatch the FG to its dealers in Navi-Mumbai by ACE trucks holding 750kg in a single trip.
Item_Code Kg/pack Value (Rs.) X1 200.0 810 X2 250.0 1000 X3 50.0 350 X4 150.0 440 X5 200.0 400 X6 100.0 165 X7 50.0 300 X8 100.0 750 X9 200.0 925 X10 150.0 500
Find the optimal SKU assortment that should be transported in a single trip to maximize the value carried in a trip.
DYNAMIC PROGRAMMING
?
? ?
?
The case of Schneider National which is the largest fleet operator in US-Canada-Mexico. It has 15000 drivers and 40000 truck loads. At any point in time, there will be a set of drivers available to be dispatched and a set of loads that need to be moved. At a point in time we will assign a driver to at most one load. This can easily be modelled as an assignment problem, where the cost of assigning a driver to a load includes both the cost of moving empty to pick up the load, plus the net revenue from moving the load. But, the planning of such a large fleet is done using simulation through dynamic programming approach.
PRODUCTION PLANNING ( LANGRANGE’S)
?
How should Wally think about how much of each style he should order in November?
FORECASTING
Yash Road Line is a local transporter of Pune who maintains a fleet of more than 40 transport vehicles which includes Ace to 35 tonner truck. To enable its smooth daily operation it maintains different types of small spares. It has its own team of technicians who take care of daily maintenance of the trucks.
SALES VS FORECAST
10000000 9000000 8000000 7000000 6000000 5000000 4000000 Sales Forecast
3000000
2000000 1000000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
FORECASTING -II
• The airlines industry has been going under frequent turmoil with very high oil prices and global slump in economy. The sales data of Kingfisher airlines have been analyzed for this.
GROSS REVENUE VS FORECAST
1800 1600
1400
1200
1000 Gross Revenue 800 Forecast
600
400
200
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
RESOURCE ALLOCATION IN PROJECTS
A Project has 7 activities. The relationship between the activities is as under
Activity Preceding Activity Duration days Manpower requirement A B C D A E B F C G D
1
2
2
1
3
2
1
2
1
1
1
1
1
1
On completion of Activities E, F & G , Project is completed
CONSTRANT: Only 3 Persons are available
Resource leveling exercise:
LS=3 LF=3 ES=1 EF=1 2 LS=2 A ES=0 1 B 1 LS=0 LS=1 2 C 2 1-3-6 is critical path 1-2-5-6 has slack of 2 days 1-4-6 has slack of 1 day EF=2 LF=3 D 1 ES=2 3 LF=2 LS=2 E 3 F LF=4 EF=2 5 ES=2 LS=4 G 1 EF=5 EF=4
EF=3
6 EF=5 LF=5
EF=2
ES=2
4 LS=3
2
Resource leveling exercise:
Manpower requirement in every day 2 2 Manpower Requirement Per day/activity 1 1 1 3 1 1 4 1 1 1 5 1 1 1 1
6
Day Manpower
1 4
2 3
3 3
4 2
5 1
The Network diagram is ‘flattened” and drawn on a time scale of weeks
Resource leveling exercise:
Day Manpower 4 Manpower
1 4
2 3
3 3
4 2
5 1
3
2
1
Time RESOURCE HISTOGRAM
Resource leveling exercise:
Activity 1-2 delayed by 1day 2 2 1 1 1 1 1 1 3 4 1 1 5 1 1 1 6 1
Day Manpower
1 2
2 4
3
3
4 3
5
1
RESOURCE REQUIREMENT > AVAILABILITY OF 3 Hence, network needs to be reworked.
Resource leveling exercise:
2 2 1 1 Activity 1-4 Delayed by 1 Day 1 3 2 3 1 1 3 1 4 1 1 1 5 1 1 1 6 1
Day
Manpower
3 3
4 2
5 2
This is Optimum Resource utilization as the availability matches with requirement
GOAL PROGRAMMING(SERVICES)
The Manager of Music World, has 10 full time salesman and 8 part time salesman for selling cds at a store ? Working hour for a full time and a part time sales man are 120 and 60 hours respectively ? As per the performance record the full time salesman sells 5 units per hour while a part time sells 2 units per hour ? The average hourly wage rate for full time employee is 10 and for part time also it is 10 ? Average profit from sales of a cd is Rs.15 ? The sales growth for next month is 7000
?
GOALS
To achieve sales of 7000 ? Limit the overtime of full time salesman to 100 hours ? Minimize the total number of overtime hours ? Manager is twice concerned with full time utilization of full time salesman as with full time utilization of part time employees
?
SOLUTION
GOAL PROGRAMMING (MANUFACTURING)
Heinz , a leading FMCG company manufactures 2 variants of Complan: Chocolate and Strawberry Flavor ? Each variant requires on an average 1 man hour for production ? The normal production capacity of the plant is 40000 man hours ? As per sales department forecast the maximum number of chocolate and strawberry that can be sold in a village is 24000 and 30000 ? Net profit form sales of chocolate and strawberry is 40 and 20
?
GOALS
Avoid any underutilization of manpower capacity ? Maximum possible units of the two variant should be sold. Since the profit from chocolate is double that from strawberry, the manager has twice as much desire to achieve sales for chocolate as for strawberry ? Overtime operation at the plant should be minimum
?
SOLUTION
doc_498862322.pptx