OR GROUP ASSIGNMENT

ABC COLA PLANT SETUP

Group 8:

UM16289 Saumya Saurav Brahma

UM16290 Saurabh Mitra
UM16291

Shalina Bebarta

UM16292 Shouvik Mukherjee

UM16293 Shubhashree

PROBLEM STATEMENT
ABC Cola has a plant in which produces soft drinks
in three types of packages that include returnable
glass bottles, aluminum cans, and nonreturnable
plastic bottles.
The company owns six distribution warehouses:

N1 and N2 are located in the north (contributing

to 60% of total sales)

C1 and C2 in the central section (contributing to

15% of total sales)

S1 and S2 in the south (contributing to 25% of total

sales)

Estimated Transportation Costs (As a percentage of

returnable bottles):

Per case of cans

60%

Per case of non-returnables

70%

DATA GIVEN

Forecasted demand over next 5 years:

Planned Production Capacities over next 5

years:

DATA GIVEN
Transportation cost per case of
returnable bottles:

Share of sales by each warehouse within

its zone

PARAMETER
No. of types of packaging (Products): 3
(Returnables, Cans, Non-Returnables)
No. of distribution warehouses : 6 (N1&N2, C1&C2,
S1&S2)
No. of locations : Northern, Central, Southern
Options of locations for setting up plant: Central,
Southern

DECISION VARIABLES
Quantity of products shipped from New Plant to
Warehouses (N1&N2, C1 &C2, S1&S2)
Total No.of Decision Variables:
3 types of products

6 warehouses x

= 18 for each region

CONSTRAINTS
Total Supply from the New Plant for each product
is limited:
Total shipped= Total supply

Total demand transported to the warehouses is

limited:
Total received= Total demand

CONCLUSION
We calculated the total transportation cost to each
warehouse from the central and southern section
separately for different products
It was found out that the minimum cost incurred
was from the South location.
Hence, we recommend that the company should
set up a new plant at the Southern location.

THANK YOU