MANAGEMENT SCIENCE

CIA-III

BY

Aaditya Aggarwal-2127070
Manchumsetty Mounika-2127147
Mahesh R-2127214
Nelapati Haritha-2127243
Revathi T M- 2127336

SUBMITTED TO
Prof: Rajashree Kammath

MBA PROGRAMME
SCHOOL OF BUSINESS AND MANAGEMENT
CHRIST (DEEMED TO BE UNIVERSITY), BANGALORE

2022-23
SEQUENCING PROBLEM

South African soft drinks manufacturing company is a soft drink manufacturer that delivers
soft drinks. The company’s productivity level was diminishing year by year leading to losses.
The study was carried out among the employees of the company's plant and through observing
equipment and wellbeing of company's facilities located in Johannesburg. A sample of 150
workers was drawn from the company, and each employee was asked questions on how
productivity can be improved. The results showed that reducing quantity of inputs, such as
working time and working equipment, would enable the company to produce a standardized
product would improve operations within the company

The operational managers of the company was held responsible to improve the productivity
level of the manufacturing process owner of the company The company uses three major
machines in the production process, which are bottle preparation machine, mixing machine,
filling machine, and the conveyor system.

Following are the details of the time taken for each Job under each machine , where machine
1 is Bottle preparation machine, Machine 2 is Mixing equipment and machine 3 is Filling
machine

Provide the optimum job sequencing of 3 machines in the order M1 – M2 – M3.

JOBS 1 2 3 4 5 6 7 8 9 10
Machine 1 12 11 10 15 13 12 11 11 13 14
Machine 2 6 9 5 8 7 10 9 9 6 5
Machine 3 11 10 9 13 14 12 8 9 10 13

PROBLEM STATEMENT

The company’s productivity level was diminishing year by year leading to losses and of
machines were required to reduce the idle time to improve the operations and produce a
standardized product.

SOLUTION:

It is satisfying the rule of, Min of Machine 1 ≥ Max of Machine 2

X = P1 + P2
Y = P2 + P3
JOBS 1 2 3 4 5 6 7 8 9 10
X 18 20 15 23 20 22 20 20 19 19
Y 17 19 14 21 21 22 17 18 16 18

OPTIMUM SEQUENCING

5 6 4 2 10 8 1 7 9 3

z 1 2 3 4 5 6 7 8 9 10
Machine 12 11 10 15 13 12 11 11 13 14
1
Machine 6 9 5 8 7 10 9 9 6 5
2
Machine 11 10 9 13 14 12 8 9 10 13
3

MACHINE 1 MACHINE 2 MACHINE 3

JOBS IN OUT IN OUT IN OUT
5 0 13 13 20 20 34
6 13 25 25 35 35 47
4 25 40 40 48 48 61
2 40 51 51 60 61 71
10 51 65 65 70 71 84
8 65 76 76 85 85 94
1 76 88 88 94 94 105
7 88 99 99 108 108 116
9 99 112 112 118 118 128
3 112 122 122 127 128 137
TOTAL ELAPSED TIME = 137 Hours
MACHINE 1: 137-122 = 15 Hours

MACHINE 2: 13+5+5+3+5+6+3+5+4+4+(137-127) = 63 Hours

MACHINE 3: 20+1+1+0+0+1+0+3+2+0 = 28 Hours

TOTAL IDLE TIME =106 Hours

INTERPRETATION

• The optimum sequencing order gives the sequence of flow for the job which reduces the
total elapsed time and the total idle time to complete the manufacturing of soft drink cans.
• The total elapsed time is 137 Hours with the total number of idle times being 106 Hours.
• The total number of hours machines worked without being idle is just 31 Hours.
• Operations manager has to try and improve the efficiency of the workers in the factory to
increase the number of hours machines worked without being idle, even when the total
elapsed time remain 137 Hours.
• Mr Chris can try to reduce the idle time by increasing the target of manufacturing soft drink
cans in 137 Hours to another optimal level of production with less idle time.

RESEARCH PAPER
http://www.ieomsociety.org/ieom2020/papers/196.pdf
GAME THEORY

Two shipping businesses, SC1 and SC2, are trying to reduce their transportation costs. There
are three basic types of transportation: air, ocean, and road. As a result, the two shipping
businesses want to know the best strategy to incur the least amount of transportation costs.

SC2
Air Ocean Road
Air 86.42 85.65 83.56
Ocean 94.43 86.7 86.7
SC1

Road 88.61 91.47 86.22

It is appropriate to apply game theory to the data presented here. The following are some of the
assumptions that must be made while implementing game theory:

• There are two players in this game.

• Each player is limited to a certain amount of strategies.
• Conditional pay-offs stemming from a variety of strategy combinations are known.
• Each pay-off results in a win for one player and a loss for the other.
• The solutions are aimed at determining the best strategy for each player, whether pure or
mixed, as well as the game's overall value.
SOLUTION

SC2
Air Ocean Road Row Min
Air 86.42 85.65 83.56 83.56
SC1

Ocean 94.43 86.7 86.7 86.7 Maxi-Min

Road 88.61 91.47 86.22 86.22
Column Max 94.43 91.47 86.7
Mini-
Max

INTERPRETATION

• We can argue that a saddle point (2,3) occurs since the values of Maximin and Minimax
are the same. Furthermore, throughout the game, Shipping Company 1 will select Ocean,
and Shipping Company 2 will select Road.
• The company's best strategy is (Ocean, Road). We will receive the best result if shipping
business 1 chooses the ocean and shipping company 2 chooses the road.
• The game's worth is estimated to be $86.7. Shipping company 1 will earn 86.7 units,
whereas shipping company 2 will lose 86.7 units, according to this formula.
• Because the game's value is not zero, it cannot be claimed to be a fair or perfectly
determinable game.

MANAGERIAL IMPLICATIONS

• One can make required decisions regarding the selection of an appropriate strategy, as well
as optimize the cost of goods transportation.
• We can make important decisions based on the best solution if game theory is correctly
implemented.
• As we know, game theory is mostly used for two players A and B so that the management
may devise a business strategy that will provide them an advantage over their competition.

DATASET

https://www.kaggle.com/datasets/salil007/1-shipping-optimization-
challenge?resource=download&select=test_2.csv
TRANSPORTATION PROBLEM
PROBLEM STATEMENT- The problem is to determine the optimal quantity of mosquito
coil that should be delivered from company’s each warehouse to different distributor’s
warehouse in order to obtain the minimum transportation cost.
The company delivers mosquito coils from its three warehouses in Dhaka, Chittagong and
Bogra to seven distributor’s warehouses in Barisal, Chittagong, Dhaka, Rajshahi, Rangpur,
Sylhet and Khulna without considering the optimal quantity. So if the company applies linear
programming to find the optimal quantity of mosquito coil to be delivered, it will be able to
minimize the transportation cost significantly, which will result in increased profitability.

NORTH WEST CORNER METHOD

north west corner Method
DW↓ CW→ Dhaka Chittagong Rangpur Barisal Rajshahi Sylhet Khulna Dummy S
Dhaka 15 1168 160 1560 154 1252 245 - 130 - 125 - 215 - 0 - 3980
Chittagong 160 - 12 - 315 187 410 986 290 612 427 - 375 - 0 - 1785
Bogra 100 - 260 - 56 - 190 - 58 1046 204 2035 160 1159 0 616 4856
D 1168 1560 1439 986 1658 2035 1159 616

15 1168 = 17520
160 1560 = 249600
154 1252 = 192808
315 187 = 58905
410 986 = 404260
290 612 = 177480
58 1046 = 60668
204 2035 = 415140
160 1159 = 185440
0 616 = 0
1761821

Here, the number of allocated cells = 10 is equal to m + n - 1 = 3 + 8 - 1 = 10

∴ This solution is non-degenerate
LEAST COST METHOD
Least cost Method
DW↓ CW→ Dhaka Chittagong Rangpur Barisal Rajshahi Sylhet Khulna Dummy S
Dhaka 15 1168 160 - 154 - 245 161 130 - 125 2035 215 - 0 616 3980
Chittagong 160 - 12 1560 315 - 410 225 290 - 427 - 375 - 0 - 1785
Bogra 100 - 260 - 56 1439 190 600 58 1658 204 - 160 1159 0 - 4856
D 1168 1560 1439 986 1658 2035 1159 616

15 1168 17520
160 391 62560
245 386 94570
125 2035 254375
12 1169 14028
0 616 0
56 1439 80584
190 600 114000
58 1658 96164
160 1159 185440
919241

Here, the number of allocated cells = 10 is equal to m + n - 1 = 3 + 8 - 1 = 10

∴ This solution is non-degenerate
VAM METHOD
VAM
DW↓ CW→ Dhaka Chittagong Rangpur Barisal Rajshahi Sylhet KhulnaDummy S
Dhaka 15 1168 160 ` 154 245 389 130 125 2035 215 0
391 3980 15 15 15 125 5 90 30 245
Chittagong 160 12 1560 315 410 290 427 375 0 225 1785 12 160 `
Bogra 100 260 ` 56 1439 190 600 58 1658 204 160 1159 0 4856 56 56 56 58 58 102 30 30 190 190
D 1168 1560 1439 986 1658 2035 1159 616

85 148 98 55 72 79 55 0
85 ` 98 55 72 79 55 0 391
85 ` 98 55 72 79 55 0
85 55 72 79 55 0
55 72 79 55 0 0
55 72 79 55
55 79 55
55 55
55
190

15 1168 17520
12 1560 18720
56 1439 80584
245 389 95305
190 600 114000
58 1658 96164
125 2035 254375
160 1159 185440
0 391 0
0 225 0
862108
Here, the number of allocated cells = 10 is equal to m + n - 1 = 3 + 8 - 1 = 10
∴ This solution is non-degenerate

DW↓ CW→ Dhaka Chittagong Rangpur Barisal Rajshahi Sylhet Khulna Dummy S
Dhaka 15 1168 160 ` 154 245 389 130 125 2035 215 0 391 3980 u1 0
Chittagong 160 12 1560 315 410 290 427 375 0 225 1785 u2 0
Bogra 100 260 ` 56 1439 190 600 58 1658 204 160 1159 0 4856 u3 -55
D 1168 1560 1439 986 1658 2035 1159 616
v1 v2 v3 v4 v5 v6 v7v v8
15 12 111 245 113 125 215 0
Iteration-1 of optimality test

1. Find ui and vj for all occupied cells(i,j), where cij=ui+vj

1. Substituting, u1=0, we get

2.c11=u1+v1⇒v1=c11-u1⇒v1=15-0⇒v1=15

3.c14=u1+v4⇒v4=c14-u1⇒v4=245-0⇒v4=245

4.c34=u3+v4⇒u3=c34-v4⇒u3=190-245⇒u3=-55

5.c33=u3+v3⇒v3=c33-u3⇒v3=56+55⇒v3=111

6.c35=u3+v5⇒v5=c35-u3⇒v5=58+55⇒v5=113

7.c37=u3+v7⇒v7=c37-u3⇒v7=160+55⇒v7=215

8.c16=u1+v6⇒v6=c16-u1⇒v6=125-0⇒v6=125

9.c18=u1+v8⇒v8=c18-u1⇒v8=0-0⇒v8=0

10.c28=u2+v8⇒u2=c28-v8⇒u2=0-0⇒u2=0

11.c22=u2+v2⇒v2=c22-u2⇒v2=12-0⇒v2=12

Chittagong Rangpur Barisal Rajshahi Sylhet Khulna Dummy S

160 ` 148 154 43 245 389 130 17 125 2035 215 0 0 391 3980 u1 0
12 1560 315 204 410 165 290 177 427 302 375 160 0 225 1785 u2 0
260 ` 303 56 1439 190 600 58 1658 204 134 160 1159 0 55 4856 u3 -55
1560 1439 986 1658 2035 1159 616
v2 v3 v4 v5 v6 v7v v8
12 111 245 113 125 215 0
1.d12=c12-(u1+v2)=160-(0+12)=148

2.d13=c13-(u1+v3)=154-(0+111)=43

3.d15=c15-(u1+v5)=130-(0+113)=17

4.d17=c17-(u1+v7)=215-(0+215)=0

5.d21=c21-(u2+v1)=160-(0+15)=145

6.d23=c23-(u2+v3)=315-(0+111)=204

7.d24=c24-(u2+v4)=410-(0+245)=165

8.d25=c25-(u2+v5)=290-(0+113)=177

9.d26=c26-(u2+v6)=427-(0+125)=302

10.d27=c27-(u2+v7)=375-(0+215)=160

11.d31=c31-(u3+v1)=100-(-55+15)=140

12.d32=c32-(u3+v2)=260-(-55+12)=303

13.d36=c36-(u3+v6)=204-(-55+125)=134

14.d38=c38-(u3+v8)=0-(-55+0)=55

Since all dij≥0. No need to Perform MODI method.

INTERPRETATION
• The minimum cost with North West Corner is 1761821
• The minimum cost with Least Cost Method is 919241, which is 842580 less than NW corner
• The minimum cost with Vogel's approximation method is 862108, which is 19528
• Higher than LC method
• So, we can use Least Cost Method for better cost saving

RESEARCH PAPER
https://www.researchgate.net/publication/295907772_Transportation_Cost_Optimization_Usi
ng_Linear_Programming