Laxmi Transformer Case Analysis

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  • Topic: Maharashtra, Gujarat, Transport
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  • Published : August 21, 2012
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LAXMI TRANSFORMERS CASE

SUBMITTED BY :

Shail| Sheth| 11FN-097|
Soumyarup| Chatterjee| 11FN-106|
Shobhit| Singh| 11FN-099|
Satyabrata| Parhi| 11FN-129|
Karthik| Thiagarajan| 11IT-015|
Kashish| Sethi| 11IT-016|
Megha| Agarwal| 11FN-062|

Decisions taken:

For Inbound logistics of raw materials , as per our calculation in the excel sheet we can see that shipment is the most appropriate option because the cost consumed is the minimum in shipment. According to our calculation the shipment cost comes out to be 318809000 Rs. But this cost might go up a bit as we do not know the cost of transporting iron ore raw material from Daitari and Banspani mines to Paradip port. But still we can assume that after adding all those cost it will still be lesser than the total railway cost, which is increased due to the rail track establishment cost of 15 cr.

For outbound logistics we have selected the main demand locations from all the given locations. As it is mentioned in the case the main demand zone is the Gujrat and Maharashtra industrial belt and all the integrated steel plants in eastern India along with Bhadravati; considering these facts we have taken the following demand markets into consideration.

City| Demand|
 | (in 10000 tpa)|
 |  |
Tatanagar| 2.0275|
Ranchi| 1.175|
Barajamda| 0.0525|
Calcutta| 10.705|
Rajkot| 0.0525|
Ahmedabad| 0.845|
Bombay| 9.37|
Nagpur| 2.485|
Aurangabad| 0.35|
Kolhapur| 0.6775|
Bhilai| 20|
Bokaro| 20|
Rourkela| 9|
Durgapur| 8|
Burnpur| 5|
TISCO| 10|
Bhadravati| 2.5|

Now as we can see the production capacity of the plant is 500000 tonnes of DRI per year so it is not possible to meet the demand for all the locations fully. So to address this issue, we have used the solver function in excel to minimise the outbound cost considering both railways and roadways, by varying the amount supplied to each of the demand market....
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