Subject: Supply Chain Management

Assignment no: 04

Teacher Name: Dr. Salman Sagheer Warsi

Student Name: Muhammad Naveed

Registration No: MEM223012

Submission Date: 04 Jan 2023

Let; Node-1 represents plant Kingsport, Node-2 represents Danville, 3 Macon, 4 Selma, 5
Columbus and node-6 represents plant Allentown. Similarly, Node-7 represents waste disposal
site Whitewater, 8 Loss Canos and 9 Duras.
Let; Xij represents quantity of waste per week transporting from node i to node j. where i= 1, 2, 3
….6 and j=7,8,9. For example X17 is cost of transporting waste from node-1 (Kingsport) to node-
7 (Whitewater).
Then; Whole scenario can be presented by liner programing as follows:

Objective Statement;
Minimize Total Cost Z =
(6X12+4X13+9X14+7X15+8X16+12X17+15X18+17X19)
+(6X21+11X23+10X24+12X25+7X26+14X27+9X28+10X29)
+(5X31+11X32+3X34+7X35+15X36+13X37+20X38+11X39)
+(9X41+10X42+3X43+3X45+16X46+17X47+16X48+19X49)
+(7X51+12X52+7X53+3X54+14X56+7X57+14X58+12X59)
+(8X61+7X62+15X63+16X64+14X65+22X67+16X68+18X69)
+(12X78+10X79) + (12X87+15X89) + (10X97+15X98)

Subject to;
X12+X13+X14+X15+X16+X17+X18+X19 -X21-X31-X41-X51-X61 = 35
X21+X23+X24+X25+X26+X27+X28+X29 -X12-X32-X42-X52-X62 = 26
X31+X32+X34+X35+X36+X37+X38+X39 -X13-X23-X43-X53-X63 = 42
X41+X42+X43+X45+X46+X47+X48+X49 -X14-X24-X34-X54-X64 = 53
X51+X52+X53+X54+X56+X57+X58+X59 -X15-X25-X35-X45-X65 = 29
X61+X62+X63+X64+X65+X67+X68+X69 -X16-X26-X36-X46-X56 = 38
X17+X27+X37+X47+X57+X67+X87+X97-X78-X79 ≤ 65
X18+X28+X38+X48+X58+X68+X78+X98-X87-X89 ≤ 80
X19+X29+X39+X49+X59+X69+X79+X89-X97-X98 ≤ 105
Xij ≥ 0
Discussion on Results:
Results of LP-solver are given as under;

Name Original Value Final Value

Objective function: min 2630 2630

Hence; minimum cost which Stateline shipping company will face is $2630 per bbl. Obviously
they need to add profit as well in order send quotation to Polychem.

Transportation Routes:
Stateline will face minimum cost if they send following quantity of waste (per week) through
following 8 routes.
Name Transport Route Waste (bbl)
Variable Values X13 Kingsport to Macon 19
Variable Values X18 Kingsport to Los Canos 16
Variable Values X28 Danville to Los Canos 26
Variable Values X39 Macon to Duras 78
Variable Values X43 Selma to Macon 17
Variable Values X45 Selma to Columbus 36
Variable Values X57 Columbus to Whitewater 65
Variable Values X68 Allentown to Los Canos 38

There are 54 total possible routes available. However only 8 routes (as given above) will be used
for efficient transportation. No other route should be utilized as it will add cost.
Only plant site-3 (Macon) and 5 (Columbus) can be used as transit.
No transportation is required between any of 3 waste disposal sites.
Constraints:
Cell Name Cell Value Status Slack
$BE$8 Kingsport = 35 Binding 0
$BE$9 Danvile = 26 Binding 0
$BE$10 Macon = 42 Binding 0
$BE$11 Selma = 53 Binding 0
$BE$12 Columbus = 29 Binding 0
$BE$13 Allentown = 38 Binding 0
$BE$14 Whitewater ≤ 65 Binding 0
$BE$15 Los Canos ≤ 80 Binding 0
$BE$16 Duras ≤ 78 Not Binding 27
Waste disposal capacity of disposal site Whitewater and Los Canos is fully utilized. Only Duras
has idle capacity available (27 bbl per week) which can be utilized in case of any emergency like
additional generation of waste at any of plant site.

Final Network Diagram:

3
7

8
4

5 9