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    PKCL Analysis

    Uploaded by

    Mudit Nawani
    The document provides case data on transportation of goods from various destinations including demand, warehouse capacity, rail/road details. It analyzes transportation using road, rail wagon and rail rake options including lead times, costs and safety stock. Road has the lowest total cost but highest transport cost while rail rake provides a balanced solution with moderate costs across parameters.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    PKCL Analysis

    Uploaded by

    Mudit Nawani
    51 views10 pages
    The document provides case data on transportation of goods from various destinations including demand, warehouse capacity, rail/road details. It analyzes transportation using road, rail wagon and rail rake options including lead times, costs and safety stock. Road has the lowest total cost but highest transport cost while rail rake provides a balanced solution with moderate costs across parameters.

    Original Description:

    Solution of the Pashu Khadyan Company Ltd

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    The document provides case data on transportation of goods from various destinations including demand, warehouse capacity, rail/road details. It analyzes transportation using road, rail wagon and rail rake options including lead times, costs and safety stock. Road has the lowest total cost but highest transport cost while rail rake provides a balanced solution with moderate costs across parameters.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    51 views10 pages

    PKCL Analysis

    Uploaded by

    Mudit Nawani
    The document provides case data on transportation of goods from various destinations including demand, warehouse capacity, rail/road details. It analyzes transportation using road, rail wagon and rail rake options including lead times, costs and safety stock. Road has the lowest total cost but highest transport cost while rail rake provides a balanced solution with moderate costs across parameters.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 10

    Case Data:

    S.No Destination Rail- Rail- Road Demand Warehouse


    rake wagon Capacity
    1 Karad 660 695 1110 24000 6000
    2 Kirloskar 660 695 1060 16000 1400
    3 Pune 640 670 940 16000 1400
    4 Kalyan 600 630 950 9000 1400
    5 Quantity per 1600 22 12
    Shipment
    6 Leat time for
    procuring
    wagon/rack 1-15 15-35 -
    7 Transit time 10-15 35-40 5-7

    Case Data:
    S.No. Destination Wareho Cost of Local
    use additio Transport
    Capacity nal &
    (tonne) Storage Handling
    (Rs/ton Cost*
    ne/mon (Rs/tonne)
    th)

    1 Karad 6000 - -
    2 Kirloskarwadi 1400 6 12
    3 Pune 1400 10 20
    4 Kalyan 1400 12 20

    For Rail-Rake
    S.No Destination Range Mean Variance
    1 Leat time for
    procuring
    wagon/rack 1-15 8 16.33
    2 Transit time 10-15 12.5 2.08
    3 Total Lead time - 20.5 18.42

    For Rail-Wagon
    S.No Destination Range Mean Variance
    1 Leat time for
    procuring
    wagon/rack 15-35 25 33.33
    2 Transit time 35-40 37.5 2.08
    3 Total Lead time - 62.5 35.42

    For Road
    S.No Destination Range Mean Variance
    1 Transit time 5-7 6 0.33
    Option A : Road

    CSL 0.95
    Avg Lead Time = L 6 days
    Variance of Lead Time= SL2 0.33
    Rev. Period = T 6 days
    No.of orders = 365/T 61

    D d Q SS Iavg C
    S.No Destination Demand Demand Expected Safety Stock Avg Pipeline SS
    per day demand using Normal Inventory Inv. Cost
    during lead distribution d*T/2
    time

    1 Karad 24000 65.75 394.52 62.44 197.26 395 17484


    2 Kirloskar 16000 43.84 263.01 41.63 131.51 263 11656
    3 Pune 16000 43.84 263.01 41.63 131.51 263 11656
    4 Kalyan 9000 24.66 147.95 23.42 73.97 148 6557
    47353
    D B A E F TC
    Avg. Pipeline Transport Transport Local Additional Additional Total Cost
    Inventory Inventory ation Cost Cost Trans. Storage Qty Storage for each
    holding Cost per ton Handl. Cost city
    cost Cost

    55233 88373 1110 26640000 - - - 26801090


    36822 58915 1060 16960000 192000 0 0 17259393
    36822 58915 940 15040000 320000 0 0 15467393
    20712 33140 950 8550000 180000 0 0 8790409
    149589 239342 67190000 692000 0 68318284
    Option B : Rail-Wagon

    CSL 0.95
    Avg Lead Time = L 62.5 days
    Variance of Lead Time= SL2
    35.42
    Transit Time 37.5 days
    Rev. Period = T 63 days
    No.of orders = 365/T 6

    D d Q SS Iavg C
    S.No Destination Demand Demand Expected Safety Stock Avg Pipeline SS
    per day demand using Normal Inventory Inv. Cost
    during distribution d*T/2
    lead time

    1 Karad 24000 65.75 4109.59 643.65 2054.79 4109.59 180222


    2 Kirloskar 16000 43.84 2739.73 429.10 1369.86 2739.73 120148
    3 Pune 16000 43.84 2739.73 429.10 1369.86 2739.73 120148
    4 Kalyan 9000 24.66 1541.10 241.37 770.55 1541.10 67583
    488101
    D B A E F TC
    Avg. Pipeline Transport Transport Local Additional Additional Total Cost
    Inventory Inventory ation Cost Cost Trans. Storage Qty Storage for each
    holding Cost per ton Handl. Cost city
    cost Cost

    575342 552329 695 16680000 - - - 17987893


    383562 368219 695 11120000 192000 2189 63828 12247756
    383562 368219 670 10720000 320000 2189 106379 12018308
    215753 207123 630 5670000 180000 802 30503 6370963
    1558219 1495890 44190000 692000 200710 48624920
    Option C : Rail-Rake

    CSL 0.95
    Avg Lead Time = L 20.5 days
    Variance of Lead Time= SL2 18.42
    Transit Time 12.5

    D d Q T 365/T SS
    S.No Destination Demand Demand Order Qty. Rev. No.of Expected Safety Stock
    per day Period orders demand using Normal
    during distribution
    lead time

    1 Karad 24000 65.75 1600 24.33 15 1347.95 464.14


    2 Kirloskar 16000 43.84 1600 36.50 10 898.63 309.43
    3 Pune 16000 43.84 1600 36.50 10 898.63 309.43
    4 Kalyan 9000 24.66 1600 64.89 6 505.48 174.05
    Iavg C D B A E F TC
    Avg Pipeline SS Avg. Pipeline Transpo Transport Local Additional Addition Total
    Inventory Inv. Cost Inventory Inventory rtation Cost Trans. Storage al Cost for
    Q/2 holding Cost Cost per Handl. Cost Qty Storage each
    cost ton Cost city

    800 1600 129960 224000 184110 660 15840000 - - - ###


    800 1600 86640 224000 122740 660 10560000 192000 929 19706 ###
    800 1600 86640 224000 122740 640 10240000 320000 929 32844 ###
    800 1600 48735 224000 69041 600 5400000 180000 794 28768 5950544
    351975 896000 498630 42040000 692000 81318 ###
    Safety stock in tonne for all three modes
    Destination Option A : Road Option B: Wagon Option C : Rake
    Karad 62.44 643.65 464.14
    Kirloskar 41.63 429.10 309.43
    Pune 41.63 429.10 309.43
    Kalyan 23.42 241.37 174.05
    Total SS 169.12 1743.22 1257.05
    Total SS Cost 47353 488101 351975
    Comparative Analysis of cost for all three modes
    Option A : Road Option B: Wagon Option C : Rake
    Tag Cost Components
    RS % RS % RS %
    A Transport Cost 67190000 98.3 44190000 90.9 42040000 94.3
    B Pipeline Inventory Cost 239342 0.4 1495890 3.1 498630 1.1
    C SS Cost 47353 0.1 488101 1.0 351975 0.8
    D Avg. Inventory holding cos 149589 0.2 1558219 3.2 896000 2.0
    E Local Trans. Handl. Cost 692000 1.0 692000 1.4 692000 1.6
    F Additional Storage Cost 0 0.0 200710 0.4 81318 0.2
    TC Total Cost for each city 68318284 100 48624920 100 44559922 100

    Cost comparision wrt to Carrier 19693364 Road 23758362 Road


    (Saving) 4064998 Wagon

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