This paper is published in Volume-4, Issue-6, 2018
Area
Operations Research
Author
Subin Oswal, Shubham Jatania, Sindhuja Thapliyal
Org/Univ
SVKM's Narsee Monjee Institute of Management Studies, Mumbai Maharashtra, India
Pub. Date
13 November, 2018
Paper ID
V4I6-1182
Publisher
Keywords
Operations research, Transportation problem, Modified distribution method, Optimal solution

Citationsacebook

IEEE
Subin Oswal, Shubham Jatania, Sindhuja Thapliyal. Finding the optimal cost for transportation of plywood and hardware in Mumbai, International Journal of Advance Research, Ideas and Innovations in Technology, www.IJARIIT.com.

APA
Subin Oswal, Shubham Jatania, Sindhuja Thapliyal (2018). Finding the optimal cost for transportation of plywood and hardware in Mumbai. International Journal of Advance Research, Ideas and Innovations in Technology, 4(6) www.IJARIIT.com.

MLA
Subin Oswal, Shubham Jatania, Sindhuja Thapliyal. "Finding the optimal cost for transportation of plywood and hardware in Mumbai." International Journal of Advance Research, Ideas and Innovations in Technology 4.6 (2018). www.IJARIIT.com.

Abstract

Transportation of raw materials within a city can be quite a daunting task. Various problems such as traffic conditions, temporary shut-down of roads, parking issues and low quantity of good increases the per unit cost of transportation and make it infeasible for the seller. The objective of this study is to provide a cost-minimizing solution by using the Modified Distribution Method on the transportation model. We quantify our hypothesis by using real life data of transportation of raw materials used by a furniture making firm based in Mumbai. Furthermore, additional restrictions were added to our model to reflect the real life problems that arise in transporting raw materials. The results showed that we were able to reduce the cost of transportation from ₹2,17,26,000 (quoted by the owner of the firm) to ₹1,98,50,000 (calculated using MODI method) by using the scientific method of the transportation problem. But when applying conditions like traffic movement & congestions and parking difficulties we notice an increase in cost. In conclusion, applying the Modified Distribution can help a firm manage its costs well and quote the appropriate price so as to not be in a loss-making solution.