Quantitative techniques -2
GROUP-2
Introduction
The case deals with the optimum procurement
and allocation plan of explosives for various
subsidiaries of Coal India Limited (CIL).
Explosives, an expensive input, play a crucial
role in the process of coal mining. A good
amount of money is also spent on its
transportation.
A systematic approach is needed for the
proper procurement and allocation of
explosives, so as to optimize on transportation
cost, as well as to ensure balanced
despatches and reliability
Objective
To move goods at the least possible
price from one place to another
To make sure the goods are allocated
efficiently, in other words not less or
more than required
Techniques Used
Concepts of transportation and
assignment used to solve the case
These techniques have been put to
use after through reading of the case
TORA software has been put to use,
rather than solving these problems
mechanically
Steps In Transportation
Problem
Select any unused square to
evaluate
Beginning at this square, trace a
closed path back to the original
square via squares that are currently
being used
Beginning with a plus (+) sign at the
unused corner, place alternate
minus and plus signs at each corner
of the path just traced
Steps in Transportation
Problem..
Calculate an improvement index by
first adding the unit-cost figures
found in each square containing a
plus sign and subtracting the unit
costs in each square containing a
minus sign
Repeat steps 1 though 4 until you
have calculated an improvement
index for all unused squares. If all
indices are 0, you have reached
an optimal solution
Ranc
hi
Nagpu Bilasp
r
ur
Singra
uli
ICI
150
90
109
930
540
511
IDL
435
375
222
710
481
568
IBP
745
685
532
490
101
490
2178
1358
KEL
MEL
2391
1083
2331
1032
1797
870
50
439
1085
932
587
795
IGEL
1145
NAV.EX
P
755
695
542
NAV.FU
S
755
695
542
PREMIE
R
1495
1435
TIEL
2100
278
278
462
111
111
851
2074
766
550
647
647
1178
1282
2026
1257
1646
2065
1859
MACWI
N
2100
2035
1100
2000
1490
1810
Ranc
hi
Nagpu Bilasp
r
ur
Singra
uli
ICI
600
600
600
900
900
900
IDL
600
600
600
900
700
900
IBP
900
900
900
600
600
900
KEL
1440
1250
MEL
1360
1000
IGEL
1250
800
NAV.EX
P
650
600
NAV.FU
S
600
PREMIE
R
660
TIEL
950
MACWI
N
1020
1140
400
550
650
900
900
EECL
900
PROCESS USED
Combined exhibit 3 and 4 results into
one table .
Checked the rim conditions that is
demand = supply or not.
Applied transportation problem
solution through north west corner
method.
The occupied cells represent the
minimum transportation cost.
THANK YOU