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Problem statement This case is about intrastate and Interstate Food grains

movement taking place in Andhra Pradesh, mostly viarailways.

Intrastate movement can be classified in two steps ofmovement, in the first step grains are sent fromfarmers/millers to the depot in the same district. In thesecond step, commodity is transferred to a depot in the

same state or in the different state. Distance between districts and cost of transportation

has been provided, an optimal transportation solutionneeds to be determined.

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Data Available from case Exhibit-1 provides a monthly movement plan for

coarse, fine and superfine grains. This plan is for May1989.

Exhibit-2 provides cost matrix between one district toanother district.

Karimnagar is one district where train route is notavailable. Road transportation cost is = (Distance

between a district to Karimnagar)*0.05 /quintol

Above mentioned data will be used with Solver todetermine optimal solution.

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Analysis Analytical information is present in the below excel sheet:

Note: This spreadsheet has been also uploaded separately on black board assignment link along with the

PPT. In case you are facing problem opening it, please refer to other attachment in blackboard.

The problem has been analyzed only for first movement ofgrains, because distance data is not available for secondmovement.

Solver has been used to determine optimal solution

separately for coarse, fine and super fine grains. Road distance for Karimnagar has been taken from web

and the distance is multiplied by 0.05 to determinetransportation cost per quintol

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Analysis

Worksheet pasted on slide 4, contains optimalsolution for coarse, fine and superfine grains asshown below:

Sheet1- optimal solution for superfine grainsVishakhapatnam Hyderabad Optimal Solution Supply

East Godavari 2000 0 2000West Godavari 0 2000 2000Krishna 0 3000 3000

Cost 5439000

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Analysis

Sheet2:- optimal solution for fine grains

VishakhapatnamAnantpurHyderabad Kurnool Cuddapah ChittorEastGodavari 6000 0 0 0 0 0 6000WestGodavari 2000 2500 2000 0 500 0 7000Krishna 0 0 0 1000 0 1000 2000Guntur 0 2500 0 0 0 0 2500

Cost 1431600

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Analysis

Sheet3- optimal solution for coarse grains

AnantpurHyderabadAdilabad Khamman KarimnagarWarrangal Kurnool cuddapah Chittor

OptimalSolutionSupply

West

Godavari 0 0 0 0 2500 0 2000 500 0 5000Krishna 500 2000 1000 1000 0 500 1000 0 2000 8000Guntur 4500 0 0 0 0 0 0 0 0 4500Nizamabad 0 1000 0 0 0 0 0 0 0 1000

Cost 1520115

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Assumptions

Analysis has been made on following assumptions: Only first transfer has been considered while deriving

the optimal solution.

Supply and Demand requirement has been gathered

based on the grain movement of May 1989. Transportation solution has been determined for each of

the grains (coarse, fine and superfine) separately.

It has been assumed that transportation cost remains

same between two districts , either way. For Karimnagar, transportation cost has been

determined base d on the actual distance provided oninternet between two districts.

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Thank you