FACULTY OF BUSINESS

SCHOOL OF ECONOMIC AND BUSINESS ENGINEERING

UNDERGRADUATE PROGRAM

ISSUE:

“ANALYSIS OF LINEAR PROGRAMMING AND DECISION

MAKING FOR THE DEVELOPMENT OF CASES APPLIED TO
THE FISHING COMPANY DIAMANTE S. TO."

MEMBERS:

JULIÁN CABEZAS, MONINA MONICA

LEYVA CASTILLA, LORENA SOFÍA

QUINTO MOLINA, LEONARDO

SÁNCHEZ ESPINOZA, YUNNI GABRIELA

COURSE: OPERATIONS RESEARCH

TEACHER: JOSÉ ALBERTO RODRÍGUEZ PARRA

SECTION:5A

LIMA PERU

2022-1

1
 INDEX

1. Introduction

2. Theoretical framework

2.1 Linear programming

2.1.1 Transport model

2.1.2 Allocation Model

2.2 Decision Making

2.2.1 Decision making under certainty

2.2.2 Decision making under risk

2.2.3 Decision making under uncertainty

2.3 Project Management

2.3.1 Network Model

3. Presentation of the topic

3.1 The fishing industry in Peru

3.1.1 Market share

3.2 Description of the fishing company Diamante SA

4. Application development

5. Observations and Recommendation

6. Conclusions

7. Bibliographic References

2
1. INTRODUCTION

The objective of this work is to apply all the knowledge acquired on the
operations research course applied to the fishing company Diamante SA
and thus manage to optimize its resources and make the best possible
decision so that it achieves its objectives and can analyze and solve its
problems. measure your needs and priorities, in order to meet all your
stated objectives. Given this, operations research allows us to create
models to represent the different problems of a company.

Therefore, first of all, we will define the concepts of the operations

research methods that will be used to carry out the analysis, then we will
make a description of the Peruvian fishing industry and the fishing
company Diamante SA, to know the reality in which it is located. and
what is your problem. Likewise, in operational development we will
address linear programming, including the maximization of profits per ton
of fish meal and fish waste meal, performing a sensitivity analysis to
know how much the coefficients can vary without leaving the base.
optimal and obtain the shadow price, the transportation method seeks to
minimize the costs incurred in transporting the raw material from the
fishing areas to the plants, in addition it seeks to efficiently assign the
machines to the maintenance team at the minimum cost. On the other
hand, in the corporate sphere it seeks to make the most optimal decision
in a risk environment, where the company plans to expand the capacities
of its operating plants (Malabrigo, Supe, Callao and Pisco) according to
the greater utility they provide. In addition, using a network model, the
entire process for the implementation of an ERP (Enterprise Resource
Planning) is described. This analysis will be developed, through the
project management topic, in order to know the activities and the time
required, and finally we will give our conclusions and recommendations
from the analysis carried out on the fishing company Diamante SA

2. THEORETICAL FRAMEWORK

2.1. LINEAR PROGRAMMING

3
Linear Programming is a mathematical technique used for planning and
decision-making related to the allocation of resources. According to
Cabrera (s. f.), Linear programming is the most important tool in the field
of operations research, as it provides us with a mathematical treatment
of problems. In this way, it serves as an approach to solving problems
with the objective of making the best decisions (Gavilánez & Puente,
2018). It is important to highlight that it can be used in various business
fields, such as the textile industry, telecommunications, transportation,
etc. In this case we will address the fishing industry.

2.1.1. TRANSPORTATION MODEL

In a transportation model, the aim is to minimize the total cost of
shipping a product from the points of existence to the points of
demand. Thus, this model involves the shipment of certain items
from different origins to various destinations (Gavilánez & Puente,
2018). It should be noted that these types of models have two types
of restrictions: Each demand point receives its requirement;
shipments from a supply point do not exceed its available capacity.

2.1.2. ASSIGNMENT MODEL

The allocation problem is a variation of the original transportation
problem. In this case, we are talking about a variation in which the
decision variables X(i,j) can only take binary values, that is, be zero
or one in the optimal solution. Which makes us assume that both
supply and demand are perfectly aligned, and both are equal to
one.

2.2. DECISION MAKING

A decision is the process by which something is chosen from a set of

different alternatives. The decision maker's problem is to determine which

4
option will best suit him or her. This decision will depend on the behavior
of whoever is in charge of decisions regarding nature (Riff, 2013).

A decision is made under 3 possible scenarios:

Certainty scenario: In this case the consequences and the states of

nature are known with certainty, which will lead to well-defined results.

Risk scenario: In this scenario, each decision can give rise to

consequences that can be treated with known probability distributions.

Uncertainty scenario: This is where the probabilities of the consequences

of the decisions made are not known.

2.2.1. DECISION MAKING UNDER CERTAINTY

According to Inñigo Aguria (2018), a decision under certainty “is one
in which those who make the decision know with certainty what the
state of nature that is going to occur, they know with certainty the
consequence of each of the alternatives that the decision implies.
decision selection” (p. 6).

2.2.2. DECISION MAKING UNDER RISK

Under risk conditions, the benefits associated with each decision
alternative are represented by probability distributions, and the
decision can be based on the criterion of expected value,
maximization of expected utility or minimization of expected cost.
In this type of scenarios, the concern does not only exist about the
results, but also in the amount of risk that each of the decisions
entails (Iñigo Aguria, 2018).

2.2.3. DECISION MAKING UNDER UNCERTAINTY

In the case of decision making under uncertainty, the decision
maker cannot specify how likely it is that different outcomes of
nature will occur. As Ingiña Aguria (2018) maintains, there is
deficient information to make the decision, there is no control over

5
 the situation nor is the interaction of the variables the problem
known.

2.3. PROJECT MANAGEMENT

Many companies or organizations must work with projects that are

generally unique, which indicate challenges for managers. However,
when it is not planned in detail, there is a risk of bad decisions or failure
to meet objectives due to increased costs, unnecessary delays and lack
of coordination.

Project management consists of 3 phases:

Planning

Programming

Control

2.3.1. NETWORK MODEL

A grid is the representation graph of a process, series

of activities interconnected either the distribution of points
geographical specific. This is how many operations research
situations can be modeled and solved as networks (Taha, 2012).
The solution to these situations is achieved through various network
optimization algorithms.

3. TOPIC DESCRIPTION
3.1. THE FISHING INDUSTRY IN PERU

We will begin this research work with a brief story of the history of the
fishing industry in Peru, it began at the beginning of the 20th century,
originating with the Peruvian-North American union of canning factories,
which began its production in Ilo, becoming In the only producing port in
the country, in 1950, production was further promoted with the arrival of
American industrial fishing fleets, which were accompanied by

6
technology and technical experts from the Californian fishing industry.
This was due to the weakening of its marine resources after satisfying
the enormous global demand that increased due to the Second World
War. Promoting the export of bonito, Shipjack, Tuna, Fish liver, etc. It
should be noted that this situation was favorable for the government
because it allowed it to acquire several fishmeal plants, which were
supervised by the Guano Administration Company. Likewise, the fishing
industry achieved competitiveness by exporting canned fish and fish liver
oil. However, at this stage it was possible to host the American company
Wilbur-Ellis, world-renowned, dedicated to fish oil and fish meal, who
later, together with the Peruvian fishing businessman Manuel Elguera,
constituted the first factory dedicated to the reduction of anchovy called
“Pesquera Chimú”, located in Chimbote. In this way, the Peruvian fishing
industry began to diversify and specialize, so that in 1956 it was the
leader in fishing production at the South American level. At its peak, it
became the world leader in fishing production in 1963, generating an
expansion of plants. close to the different ports on the coast, growth in
the economy and achieving greater benefits for the population. But, in
the 70's it was diminished with the appearance of indiscriminate fishing
and due to ignorance of climatological factors. However, in recent years
Peru has once again become one of the leading fishing countries in the
world, recognized worldwide for the richness of its sea. Currently, the
Peruvian fishing industry applies technologies that include the
conservation of the species, the production of canned goods and salted,
dehydrated and smoked products, fish flour and fish oil.

3.1.1 MARKET SHARE

In the Peruvian fishing industry market there are several

companies that produce fishmeal (it is the producer par
excellence), as well as industrial fishing (being recognized as one
of the main ones), however, it is mainly made up of 6 firms.
economic, which control the first 7 months of the year of 2020,
which stand out in the fishing production of the rest of the country,

7
 in this way, first of all, we have Tecnológica deAlimentas SA
(Tasa), which emerged in 2002 and It has an approximate
participation of 13.05% of Peruvian fishing exports, and belongs to
the Breca business group; Secondly, we have Pesquera Exalmar
SAA created by businessman Víctor Matta Curotto and its
participation is 9.57% of fishing exports; Thirdly, we have
Pesquera Hayduk SA, it has been a Peruvian firm since 1991, and
has 7.74% of total fishing exports; In fourth place is the
Corporación Pesquera Inca SAC (Copeinca), has a 6.43% share
of total fishing exports; In fifth place, we have Pesquera Diamante
SA, whose firm belongs to the businessmen brothers José
Enrique and Fernando Ribaudo, with a participation of 6.24% of
the total fishing exports and in sixth place is DSC Marine Lipids
Perú SAC, the company has 4.56% participation in total fishing
exports.

Graph 1: Fishing participation in the Peruvian market

Empresa Pesquera Diamante

conservascurado
aceite 4% 1%
12%
harina
46%

congelado y fresco
refrigerado
36% otros
1%

harina otros
congelado y fresco refrigerado aceite
conservas curado

Source: fishing exports will increase by 42.7% in January 2021

8
https://www.comexperu.org.pe/articulo/exportaciones-pesqueras-aumentan-un-427-en-enero-de-2021

Own preparation 2022

3.2 DESCRIPTION OF THE DIAMOND FISHING COMPANY

➔ RUC: 20159473148
➔ Company Name: PESQUERA DIAMANTE SA
➔ Website: http://www.diamante.com.pe
➔ Company Type: Public Limited Company
➔ Condition: Active
➔ Activities Start Date: June 30, 1993
➔ Commercial Activity: Preparation and Preservation of Fish.
➔ ISIC: 15127

Pesquera Diamante SA is a Peruvian company, founded in 1993, mainly

dedicated to anchovy fishing for the manufacture of fishmeal and fish oil. It has
more than 27 years of experience in fishing and 22 years in processing
fishmeal and fish oil. ; and manages to satisfy the marine food needs of the
national and global market. Currently, the company has 5 plants in Callao,
Malabrigo, Supe, Pisco and Mollendo (it closed its Samanco, Ilo and Bayóvar
plant due to its low fishing contribution); operating with 4 well-defined work
areas, which are the Fleet or Extraction area, Production area, Commercial
area and the Operations and Sales Support area.

This company has a fleet of 22 fishing vessels for Indirect Human

Consumption (IHC) dedicated to anchovy fishing for the production of fishmeal
and fish oil; and 10 for Direct Human Consumption (CHD) dedicated to fishing
for horse mackerel, mackerel and tuna, species that are distributed as fresh
and processed fish (production of its “frescomar” tuna). The production
capacity per plant is detailed below:

Floors Production capacity

9
Callao (Callao) Fishmeal plant:

● Process capacity: 175 MT/h.

● Raw Material storage capacity: 2,000 MT.
● Finished product storage capacity: 17,300MT.

Soluble concentrate plant:

● Production capacity: 3.5 MT/h.

Frozen plant:

● Production capacity: 740 MT/day or 31 MT/h.

● Finished product storage capacity: 7,200 MT.

Malabrigo (La Fishmeal plant:

Libertad)
● Process capacity: 196 MT/h.
● Raw Material storage capacity: 3,000 MT.
● Finished product storage capacity: 6,000 MT

Pisco (Ica) Fishmeal plant:

● Process capacity: 178 MT/hour.

● Raw Material storage capacity: 2,920 MT.
● Finished product storage capacity: 20,000 MT.

Supe (Lima) Fishmeal plant:

● Process capacity: 190 MT/h

● Raw Material Storage Capacity: 1,960 MT
● Finished product storage capacity: 14,500 MT

10
 Mollendo Fishmeal plant:
(Arequipa)
● Process capacity: 80 MT/hour.
● Raw Material storage capacity: 1,250 MT.
● Finished product storage capacity: 5,500MT.

4. APP DEVELOPMENT

4.1. GENERAL OPTIMIZATION PROBLEM

The plant in the northern zone “Malabrigo” of the Diamante fishing company
produces fish meal and fish waste meal, the profit per ton of fish meal is $908.38 and
of fish waste meal is $454.19.

The Malabrigo plant receives a maximum of 1,571 MT of anchovy weekly, 15 MT is

required to produce fish meal and 6 MT to produce fish waste meal.

Likewise, to produce both fish meal and fish waste meal, a pressing, mixing,
decanting, drying and purifying machine is needed, of which the plant has a
maximum of 192 hours/press machine, 1.2 hours to produce c/ton of fish meal and
2.7 hours to produce c/ton of fish waste meal; In the mixing machine there are 243
hours, 1.4 to process each ton of fish meal and 4 for each ton of fish waste meal,
likewise the decanting machine has 337 hours, 2.5 hours for each ton of fish meal.
fish and 3.4 hours for c/ton of fish waste meal; In the drying machine there are 284
hours, 1.8 for each ton of fish meal and 3.8 for each ton of fish waste meal and finally
in the purifying machine there are 250 hours, 1.5 per ton of fish meal. fish and 3.7 per
ton of fish waste meal. How many tons of each type of meal must be produced to
obtain the maximum possible profit, considering the limitations of the plant?

11
OBJECTIVE FUNCTION:

MAX Z= 908.38X1+ 454.19X2

VARIABLES:

X1: Tons of fish meal

X2: Tons of fish waste meal

RESTRICTIONS:

15X1 + 6X2 <= 1571 Raw material (TM)

1.2X1+ 2.7X2<= 192 Press Machine Hours

1.4X1 + 4X2 <= 243 Mixing Machine Hours

2.5X1+3.4X2 <= 337 Decanter Machine Hours

1.8X1+3.8X2<= 284 Dryer Machine Hours

1.5X1+3.7X2<= 250 Purifying Machine Hours

X1; X2 >=0 Not negativity

MODEL CONSTRUCTION:

MAX Z= 908.38X1+ 454.19X2

SA:

15X1 + 6X2 <= 1571 Raw material (TM)

1.2X1+ 2.7X2<= 192 Press Machine Hours

12
1.4X1 + 4X2 <= 243 Mixing Machine Hours

2.5X1+3.4X2 <= 337 Decanter Machine Hours

1.8X1+3.8X2<= 284 Dryer Machine Hours

1.5X1+3.7X2<= 250 Purifying Machine Hours

X1; X2 >=0 Not negativity

RESOLUTION OF THE MODEL USING SOLVER

13
Results: In the solution obtained by the Solver method, the optimal value is
sought to maximize the weekly profits that was defined from the beginning as
the objective function of the design, the optimal tons to produce weekly of fish
meal and fish waste were the following:

X1= 93.53

X2= 28.02

The optimal solution is Z= 97682.54 , which represents the maximum profit that
the company Diamante SA can obtain from the production of fishmeal and
waste meal in a few weeks if it produces this combination of tons of both types
of meal. We also observe that it is more It is advisable to produce more tons of
fish meal than fish waste meal.

14
 SENSITIVITY ANALYSIS

Interpretation:

We can see in the table of the sensitivity report that the company Pesquera
Diamante can reduce its profit from fish meal up to 158.97 soles, it can also
increase up to 1135.48 soles without leaving the range of optimality. On the
other hand, it can reduce the usefulness of fish waste meal up to 363.35 soles,
and it can also increase it up to 2595.37 soles without changing the optimal
base or without leaving the range of optimality.

In R1 (raw material received), it can be reduced up to 364.5 tons and increased

up to 1649.08 tons without leaving the feasibility range, in R2 (machine hours in
press) it can be reduced up to 187.87 hours without leaving the feasibility range,
in R3 (mixing machine hours) it can be seen that it can vary from 146.63 hours
to 249.39 hours, in R4 (decanter machine hours), it can be reduced to 329.07
hours without changing the optimal base, in R5 (drying machine hours) it can be
reduced the hours to 274 and finally in the purifying machine it can be reduced
to 243.95 hours.

In addition, we can observe the shadow price of the raw material received which
is interpreted that for each additional ton of anchovies a profit of 58.09 will be

15
obtained, in the same way if we add an additional hour of the mixing machine a
profit of 26.41 would be obtained.

4.2. TRANSPORTATION MODEL

The company Pesquera Diamante SAC is located in Callao and is dedicated to

the processing of fish flour and oil, preserves and fresh and frozen products, as
it has two processing areas located in the Center and North, and a fishing area
located in Malabrigo, Supe, Callao and Pisco.
 The fishing area in ¨Malabrigo¨ produces a maximum of 196 tons per month.
 The fishing area in the “Supe” produces a maximum of 190 tons.
 The ¨Callao¨ fishing area produces a maximum of 175 tons.
 The ¨Pisco¨ fishing area produces a maximum of 178 tons.

In the area there are two processing plants that consume at least:
 The "Centro" plant consumes 554 t/month of fish; and,
 The "North" plant consumes 185 t/month.
The market transportation costs per ton are:
-From "Malabrigo" to "Centro" = 3 Thousand Soles
-From "Malabrigo" to "Norte" = 1.2 Thousand Soles
-From "Supe" to "Centro" = 1.5 Thousand Soles
-From “Supe” to “North” = 2.5 Thousand Soles
-From "Callao" to "Centro" = 1 Thousand Soles
-From "Callao" to "North" = 4 Thousand Soles
-From “Pisco” to “Centro” = 3.5 thousand soles
-From “Pisco” to “North” = 2 Thousand soles
The transportation costs from all fishing areas to all processing plants are as
follows:

Processing areas
Fishing zone
Processing Center North Processor

Malabrigo 3 1.2
I knew 1.5 2.5
Callao 1 4

16
 Pisco 3.5 2

190 T/M 175 T/M

FISHING
FISHING
AREA 3:
AREA 2:
CALLAO
SUPE
X4= 2.5mil 178 T/M
196 T/M
FISHING
X6= 4mil
FISH AREA 1: X2= 1.2mil AREA 4:
X3= 1.5mil
X7= 3.5mil
MALABRIGO X5= 1 PISCO

X8= 2mil
X1= 3mil

PROCESSOR 1: PROCESSOR 2:
CENTER NORTH

554 T/M 185 T/M

Formulating the problem to be solved, linear programming is used, we have the

following equations:
Production restrictions: (supply)
 x 1+ x2 ≤196
 x 3 + x 4 ≤190
 x 5 + x 6 ≤ 175
 x 7 + x 8 ≤ 178

Consumption restrictions: (demand)

 x 1+ x3 + x 5 + x 7 ≥ 554
 x 2+ x 4 + x 6+ x8 ≥ 185

The objective function will be:

17
  Min(Z)=3 x 1 +1.2 x 2 +1.5 x 3+ 2.5 x 4 + 1 x 5 +4 x 6 +3.5 x 7 +2 x8

F. OBJETIVO: MÁX(Z)= 3X1+ 1.2X2+ 1.5X3+ 2.5X4+ 1X5+ 4X6+ 3.5X7+ 2X8 X1 X2 X3 X4 X5 X6 X7 X8
S.A: 11 185 190 0 175 0 178 0
X1+X2 <= 196
X3+X4 <= 190 Z1 3 1.2 1.5 3 1 4 3.5 2 1338
Oferta
X5+X6 <= 175 R1 1 1 0 0 0 0 0 0 196 <= 196
X7+X8 <= 178 R2 0 0 1 1 0 0 0 0 190 <= 190
R3 0 0 0 0 1 1 0 0 175 <= 175
X1+ X3+ X5+ X7 => 554 R4 0 0 0 0 0 0 1 1 178 <= 178
Demanda
X2+ X4+ X6+ X8 => 185 R5 1 0 1 0 1 0 1 0 554 >= 554
R6 0 1 0 1 0 1 0 1 185 >= 185
NN: xij >= 0

Applying Solver:

The minimum transportation cost solution per month turns out to be:
X1=11
X2=185
X3=190
X4=0
X5=175
X6=0
X7=178
X8=0
Where:
Z=1,338 thousand soles

Interpretation:

 In the Malabrigo fishing area, 11 tons must be transported to processing

plant 1 at a cost of s/. 3,000 and 186 tons to processor 2 with a cost of s/.
1,200.
 In the Supe fishing area, it is recommended to transport the 190 tons only to
processing plant 1 because its cost per day will be s/. 1,500.
 In the Callo fishing area, all the tons, that is, 175, should also be taken to
processor 1 since its minimum cost would be S/. 1,000.

18
 In the Pisco fishing area, all tons should be transported to processing plant 1
because its cost inESTADO
this would DEbe s/. 3,500.
NATURALEZA
Ingresos 1era
Ingresos 2da VALOR
ZONA
Temporada Temporada ESPERADO
(noviembre-
(mayo-agosto)
RECHAZAR enero) en
4.3. en millones
DECISION MAKING UNDERde RISKmillones de
dólares
dólares

Malabrigo -61.38 62.41 65.53 45.402

Supe -23.35 23.63 24.79 17.163
Callao -27.77 28.72 30.15 20.961
Pisco -10.89 11.09 12.28 8.388
0,15 0,35 0,5

In 2020, the Diamante fishery was evaluating investing in one of its fishing
areas: Malabrigo, Supe, Callao or Pisco. This in order to increase processing
capacity and improve performance. The company could reject the project, but
could also agree to invest in it and make profits in both the 1st and 2nd fishing
season. In the Malabrigo area, income of 62.41 million dollars of fish was
achieved during the first season of 2020. The following table summarizes the
utilities:

If the probability estimates for the states of nature are P(reject) =0.15, P (1st
season) = 0.35 and P (2d season) = 0.5. What should the Diamond Fishery do?

VE(Malabrigo )=−61.38∗0 , 15+62.41∗0 ,35+ 65.53∗0 , 5=−9.207+21.844 +32,765=45.402

VE(Supe)=−23.35∗0.15+ 23.63∗0.35+ 24.79∗0.5=−3.503+ 8.271+ 12.395=17.163
VE(Callao)=−27.77∗0.15+28.72∗0.35+30.15∗0.5=−4.166 +10.052+ 15.075=20.961
VE(Pisco)=−10.89∗0.15+11.09∗0.35+12.28∗0.5=−1.634+3.882+ 6.14=8.388

19
Expected value with perfect information

S1 S2 S3 POE
a1 50.49 0 0 7.574
a2 12.46 38.78 40.74 35.812
a3 16.88 33.69 35.38 46.512
a4 0 51.32 53.25 44.587
0.15 0.35 0.5

VECIP=−10.89∗0 , 15+62.41∗0 ,35+ 65.53∗0 ,5=−1.634+21.844 +32,765=52.975

Expected value of perfect information
VEIP=VECIP−VEM
VEIP=52.975−45.402=7.573
Loss of opportunity
POE (a 1)=50.49∗0 ,15+ 0∗0 ,35+ 0∗0 , 5=0+0+0=7.574
POE (a 2)=12.46∗0.15+38.78∗0.35+ 40.74∗0.5=1.869+13.573 +20.37=35.812
POE (a 3)=16.88∗0.15+33.69∗0.35+35.38∗0.5=17.03 +11.792+17.69=46.512
POE (a 4 )=0∗0.15+51.32∗0.35+53.25∗0.5=0+ 17.962+ 26.625=44.587
Interpretation:
- As we can see in the State of Nature table; In Malabrigo an expected value
of 45,402 million dollars is obtained, with an opportunity loss of 7,574.
- It can be seen in the State of Nature table that, in Supe, an expected value
of 17,163 million dollars is obtained, with an opportunity loss of 35,812.
- We see in the State of Nature table that in Callao an expected value of
20,961 million dollars is obtained, with a loss of opportunity of 46,512.
- It can clearly be seen that in the State of Nature table; In Pisco, an expected
value of 8,388 million dollars is obtained, with an opportunity loss of 44,587.

4.4. ASSIGNMENT MODEL-HUNGARIAN

La Pesquera Diamante SAC It has Frozen Plants, which need maintenance

as shown in the following table:

20
 It is distributed in 3 specialized teams that carry out maintenance on each
plant, which are:

 The fishing area in the ¨Malabrigo¨

 The ¨Callao¨ fishing area
 The ¨Pisco¨ fishing area

According to the Hungarian Assignment Model, we first mark the sets of each
matrix for a better understanding, giving a value to a box of x11,x12..., in this
case a minimization must be done, since we want each team to do efficient
work but with a minimum of resources. We place the objective function and its
constraints respectively:

To find with SOLVER we must make a series of tables in which our values will
go to give the following results:

21
Interpretation:

It is observed that each piece of equipment was distributed in the best possible
way to minimize maintenance costs.

The result is that the total cost of maintenance would be 40 thousand soles.

4.5. NETWORK MODEL

The Diamante fishing company wants to have better management of

surveillance and control of information generated by its activities, whether
logistics, production, etc. Various data is generated daily, so they seek to
consolidate their information in a better way, through the construction of their
own database.

With the objective of being able to provide timely information to its interest
groups and be able to maintain an appropriate relationship in its environmental,
social and economic sphere, the company intends to implement a machine
learning project, called “SAP S/4 HANNA Integrated System”.

In this way, the objective is to implement the CPM model, in a fixed time, in
order to reveal more clearly the duration of the project and its slack.

22
Thus, the company seeks to implement the ERP system, which is a system that
helps automate and manage business processes in different areas: finance,
manufacturing, retail, supply chain, human resources and operations.

Project: Proposal of a work plan for the assembly of an ERP system

 Activity: Implementation of the ERP system.

 Description: Diamante SA aims to integrate all its logistics, production,
accounting and project management activities, through ERP software.
The advantages that this system offers is being a reliable source of data,
and helps in collecting data for making managerial decisions.;
Furthermore, with this system, data duplication is avoided.
 Start Date: The activities for the implementation of this system will begin
on August 2, 2022.
 Time: Duration of 70 weeks.
 Final Date: The completion of the activities is estimated for November
28, 2023.

Next, the activities that entail the implementation of the ERP system, with CPM,
will be presented.

Activities table:

Network diagram:

23
Clearance Calculation:

Gantt diagram:

24
Interpretation:

In the following table we can see certain

activities that have a total slack equal to 0,
these activities are those that cannot be
delayed, since they have no slack. In the
event that they are delayed, the project
would be affected, delaying it completely.
These activities are those that form the
critical path.

The critical path is: A  B  C  F  I  K  L

In the same way, we have activities that have some slack, that is, the indicated
ones can be postponed without affecting the project.

- Activity D has a total slack of 7 weeks, but the activity cannot be

expanded in time, as this would affect its subsequent activity, which is
why the free slack is zero.
- Activity E has a total and free slack of 18 weeks, this does not affect any
activity, even though this activity precedes activity L.
- Activity G shows a total clearance of 15 weeks and 3 weeks of free
clearance, if dilated in time it would affect the start of activity J.
- Activity H has a total and free slack of 7 weeks.
- Activity J precedes activities F and G. Also, it is the predecessor of
activity L, if this activity is dilated it would not affect the trend of the
critical path, which is why their clearances are equal.

5. OBSERVATIONS AND RECOMMENDATIONS

● The Diamante fishing company should make the most of all the capacity
of its operating plants (Malabrigo, Supe, Callao and Pisco) in order to
increase its productivity and maximize its profits.

25
 ● Maintenance must be planned for the machines in all its plants, so that
production is not affected, mainly to meet international demand.

● Since the company exports its products, mainly fish meal, it is important
that all the technical food requirements of the industry are met, such as
humidity, protein and fat levels.

● It is important to mention that the Diamante fishing company should

better analyze the routes it has regarding the transportation of materials
from the fishing areas to the processing areas, in order to be able to
keep in mind those that provide lower costs and that at the same time In
turn, all the tons of the requested products can be transported.

● We must indicate that, although the company has 4 different fishing

areas, each of them presents different profits or utilities than the others;
That is why special emphasis must be placed on being able to calculate
which of these has the highest expected value and, in turn, the lowest
loss of opportunity. It is worth remembering that these two aspects
mentioned above will ultimately give us a single answer and that this will
give us a better overview of which area to invest in.

● Every year, when carrying out its preventive maintenance day, the fishing
company must correctly assign the suppliers it requires for the inspection
and maintenance of its machines. To do so, it must use the Hungarian
method to reduce its costs efficiently.

● You must recognize that your total slack is not very restrictive, as it may
impact another consequent activity, forcing another activity to be
delayed, but it will not necessarily increase the direction of the project;
since the critical path is already established. On the contrary, the free
slack, if more restrictive, can be expanded within the period of its slack
without affecting the start time of another activity. Given this, the
recommendation is that the Diamante fishing company sticks more to
free clearance if necessary than to total clearance.
6. CONCLUSIONS

● The application of Operations Research knowledge helped significantly,

since it allows the use of linear programming, therefore formulating the

model for the Malabrigo plant of the fishing company Diamante SA, it
was obtained using the solver tool that the Malabrigo plant should
produce 93.53 tons of fish meal and 28.02 tons of fish waste meal in

26
 such a way as to maximize their weekly profit to $97,682.54, in turn it is
shown that more tons of fish meal must be produced than the waste
meal, since this will generate greater benefits.

● Likewise, through the sensitivity analysis we can see that the Malabrigo

plant is not efficiently using its resources, since the productive capacity of
its machines is not being fully used, so the company could process more
tons of anchovy to obtain greater production of both types of flour and
obtain greater profit.

● In this way, using the transportation model, the conclusion is reached

that, to reduce costs, it is not necessarily required that all transportation

channels be used but refers to, for example; It is best that only one
fishing zone provides supplies to the northern processing zone, and to do
this most effectively this zone should be Malabrigo. In effect, the low-risk
decision-making method can be concluded that the most competent
result or investment will be the one that achieves a greater expected
value and also a lower loss of opportunity, since the fishing area in which
it is advisable to invest is in Malabrigo, since it shows that it has a greater
number of wins in both the first and second seasons, since it is a
considerable difference and which influences that both its EV and its
POE are considerably greater than everything else .

● Using the Hungarian assignment model, it can be announced that team 1

should do maintenance at the Malabrigo plant, team 2 at the Callao plant

and team 3 at the Pisco plant, since in this way it would be providing
maintenance in an optimal and efficient manner, which would cost 40
thousand soles.

● Project management is really important for an organization; many

companies must plan their activities in detail in order to carry out their
activities in the best way. In addition, it will be very useful to be able to
organize as an institution and thus know when and how to develop its

27
 activities and reach the proposed goal, without confusion, without
crossovers of activities or any inconvenience that causes the company to
find itself in problems. A network model helps the company organize its
activities. In addition, with a Gantt chart, it can facilitate the visualization
of the actions that the company must carry out to fulfill the project to be
carried out.

7. REFERENCES

 Arias, A. (2019). Determination of the optimal route for each bus of the
Loja transport cooperative to obtain maximum utility. Recovered from
http://repositorio.utmachala.edu.ec/bitstream/48000/14691/1/E-
9550_ARIAS%20ROBLES%20ARIANA%20ANTONELLA.pdf

 Cabrera, S. (s. f.) Application of Linear Programming in Agronomy.

Recovered from

28
 https://matematicas.uclm.es/ita-cr/web_matematicas/trabajos/248/Progra
macion_lineal.pdf

 Send containers to Peru. (2021). Recovered on July 2 https://ww Home,

fish meal, fish oil, canned fish, frozen fish w.icontainers.com/es/enviar-
contener/peru/#:~:text=El%20transporte%20mar%C3%ADtimo%20 desde
%20and,be%20from%20to%20four%20weeks .

 Exe. (2019). home, fish meal, fish oil, preserves, frozen fish . diamond
fishing https://www.diamante.com.pe/

 Fishing exports increase by 42.7% in January 2021 . (2021). comex -

foreign trade company of Peru. Recovered from
https://www.comexperu.org.pe/articulo/exportaciones-pesqueras-
aumentan-un-427-en-enero-de-2021

 Gavilánez, O & Puente, M. (2018). Linear Programming for Decision

Making. Riomba, Ecuador: Higher Polytechnic School of Chimborazo.
Retrieved from
http://cimogsys.espoch.edu.ec/direction-publicaciones/public/docs/
books/2019-09-19-210805-58%20Libro%20Programacio%CC%81n
%20Lineal%20final.pdf

 Guerrero, H. (2017). Applied Linear Programming (2nd ed.). Bogotá: Ecoe

Ediciones. Recovered from:
https://www.ecoeediciones.com/wp-content/uploads/2017/07/Programaci
%C3%B3n-lineal-aplicada-2da-Edici%C3%B3n.pdf

 Inguiño, S. (2018). Decision making under risk: Sequential decisions,

examples of application in business management. (Degree in Business
Administration and Management). University of the Basque Country.
Retrieved from https://addi.ehu.es/bitstream/handle/10810/33174/Toma

29
 %20de%20decisiones%20bajo%20riesgo.%20Decisiones
%20secuenciales.%20Ejemplos%20de%20aplicaci%C3%B3n%20en
%20la% 20 management

 Riff, M. (2003). Operations Research II. Retrieved from

https://www.inf.utfsm.cl/~mcriff/IO2/Materia-IO2.pdf

 Taha, H. (2012). Operations research. (9ed.) Mexico: Pearson education.

Retrieved from
https://fad.unsa.edu.pe/bancayseguros/wp-content/uploads/sites/4/2019/0
3/investigacic3b3n-de-operaciones-9na-edicic3b3n-hamdy-a-taha-fl.pdf

30