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PROJECT-GROUP
15
Group members
Nguyễn Thị Mai Hương
Nguyễn Thị Tường Vi
Trần Hữu Vịnh Giang
Võ Hoàng Thanh Thủy
Angelique Pattrick Yuson

BABAIU11262
BABAIU11059
BABAIU11137
BABAUN11092
BABAIU11284
USING AHP TO CHOOSE NEW PLANT
0 The company uses the following for pairwise comparisons:

1- equally preferred
2- equally to moderate preferred
3- moderate preferred
4 - moderate to strongly preferred
5- strongly preferred
6- strongly to very strongly preferred
7- very strongly preferred
8- very to extremely strongly preferred
9- extremely preferred
Looking at the factor “area”, based on some data collected, the
company finds that:
0 Amata is strongly preferred to Cu Chi
0 Amata is moderate to strongly preferred to Vn – Sin
0 Nhon Trach is very to extremely strongly preffered to Cu Chi
0 Nhon Trach is moderate preferred to Vn- Sin.
0 Vietnam- Sin is strongly preferred to Cu Chi
0 Nhon Trach is equally preferred to Amata
Looking at the factor “power price” and based on some collected data, the
company finds that:
0 Nhon Trach is very strongly preferred to Cu Chi
0 Nhon Trach is strongly preferred to Amata
0 Nhon Trach is very to extremely strongly preffered to Vn- Sin
0 Amata is moderate to strongly preferred to VN-Sin
0 Cu Chi is equally preferred to Amata
0 Cu Chi is strongly to very strongly preferred to Vn- Sin
Looking at the factor labor force and some collected data, the company finds
that:
0 Cu Chi is very to extremely strongly preferred to Amata
0 Cu Chi is strongly preferred to Nhon Trach
0 Amatar is moderate preferred to Vina-Sin
0 Cu Chi is 8- very to extremely strongly preferred to Vina-Sin
0 Nhon Trach is very strongly preferred to Vina-Sin
0 Nhon Trach is moderate preferred to Amata
Looking at the factor “waste water treatment plant” and based on some
collected data, the company finds that:
0 Vina-sin is strongly to very strongly preferred to Amata
0 Vina- Sin is very to extremely strongly preffered to Cu Chi
0 Vina-Sin is very strongly preferred to Nhon Trach
0 Amata is moderate to strongly preferred to Cu Chi
0 Nhon Trach is moderate preferred to Cu Chi
0 Amata is equally to moderate preferred to Nhon Trach
VN - Singapore

Nhơn Trạch

Labour Force

Củ Chi

Amata

VN - Singapore

Nhơn Trạch

Power Price

Củ Chi

Amata

VN - Singapore

Nhơn Trạch

Area

Củ Chi

Amata

VN - Singapore

Nhơn Trạch

Củ Chi

Amata

Choosing best
industrial zone

Treatment
Area
Area
Amata
Cu Chi
Vn-Sin
Nhon Trach
Total

Amata
1,00
0,20
0,25
1,00
2,45

Cu Chi
5,00
1,00
5,00
8,00
19,00

Vn-Sin
4,00
0,20
1,00
3,00
8,20

Nhon Trach
1,00
0,13
0,33
1,00
2,46

Area
Amata
Cu Chi
Vn-Sin
Nhon Trach

Amata
0,41
0,08
0,10
0,41

Cu Chi
0,26
0,05
0,26
0,42

Vn-Sin
0,49
0,02
0,12
0,37

1,68

Nhon Trach
0,41
0,05
0,14
0,41

Consistency
Vector

0,21
0,65
1,68

0,39
0,05

Row
averages

0,16
0,40

From the analysis, the company saw that it is relatively
consistent with its responses, so there is need to
reevaluate the pairwise comparison responses.
Power Price
Power Price
Amata
Cu Chi
Vn-Sin
Nhon Trach

Amata
1,00
1,00
0,25
5,00

Power Price
Amata
Cu Chi
Vn-Sin
Nhon Trach

Cu Chi
1,00
1,00
0,17
7,00

Amata
0,20
0,20
0,05
1,00

0.15

Row
average

0.28

0.05
0.73

Vn-Sin
4,00
6,00
1,00
8,00

Cu Chi
0,11
0,11
0,02
0,76

Vn-Sin
0,21
0,32
0,05
0,42

Nhon Trach
0,20
0,14
0,13
1,00

Nhon Trach
0,14
0,10
0,09
0,68

4.06

Consistency
Vector

4.02
4.38
5.27

Consistency
Index

0.09

CR

0.1

From the analysis, the company saw that it is relatively
consistent with its responses, so there is need to
reevaluate the pairwise comparison responses.
Labor Force
Labor force

Amata

Cu Chi

Vn-Sin

4,19

Nhon Trach

Amata

1,00

0,13

3,00

0,33

Cu Chi

8,00

1,00

8,00

5,00

Vn-Sin

0,33

0,13

1,00

0,14

Nhon Trach

3,00

0,20

7,00

4,05

1,00

Labor force

Amata

Cu Chi

Vn-Sin

Consistency
Vector

4,39
4,04

Nhon Trach

Amata

0,13

0,25

0,12

0,19

Cu Chi

0,03

0,06

0,09

0,03

Vn-Sin

0,77

0,50

0,70

0,06

0,19

0,10

0,10

0.08

CR

0.09

0,68

Nhon Trach

CI

From the analysis, the company saw that it is relatively
consistent with its responses, so there is need to
reevaluate the pairwise comparison responses.
Waste Water Treatment
Waste
water
Amata
Treatment

Cu Chi

Vn-Sin

Nhon Trach

Amata

1,00

4,00

0,17

2,00

Cu Chi

0,25

1,00

0,13

0,33

Vn-Sin

6,00

8,00

1,00

0,50

3,00

0,14

4,19
4,05
4,39

7,00

Nhon Trach

Consistenc
y
Vector

1,00

4,04

CI
CR

Waste Water
Amata
Treatment

Cu Chi

Vn-Sin

0.06
0.06

Nhon Trach

Amata

0,13

0,25

0,12

0,19

Cu Chi

0,03

0,06

0,09

0,03

Vn-Sin

0,77

0,50

0,70

0,68

Nhon Trach

0,06

0,19

0,10

0,10

From the analysis, the company saw that it is
relatively consistent with responses, so no need to
reevaluate the pairwise comparison responses.
Determining factor weights
Area

Power Price Labour Force

Treatment

Area

1,00

3,00

0,25

0,50

Power Proce

0,33

1,00

0,20

0,25

Labour Force

4,00

5,00

1,00

5,00

0,20
Labour Force

1,00
Treatment

Treatement

2,00
Area

4,00
Power Price

Area

0,14

0,23

0,15

0,07

Power Proce

0,05

0,08

0,12

0,04

Labour Force

0,55

0,38

0,61

0,74

Treatement

0,27

0,31

0,12

0,15
0.15
0.07
0.57
0.21

Row average

Factor Weight Table
0,61

Area
0,61

0,29
2,57

Weight sum factors

Power price
0,29

0,90

Labor Force
2,57
4,10

Consistency
vector
CI

0.08

CR

0.09

4,08

Waste water treatment

4,52
4,25

0,90
Overall ranking
After the factor weights have been determined, ABC multiplied the factor evaluations in
“Factor evaluations“ table times the “factor weights” table above. It gives him the overall
ranking.
Because Cu Chi had the highest priority, therefore, ABC company consider Cu Chi the best
place to build industrial zone.
0,68

0,07

Amata
Cu Chi

Labor Force

0,57

Vn-Sin

0,83

Waste water treatment

0,21

Nhon Trach

1,13

Area

0,15

Power price

1,76

Because Cu Chi had the highest priority, therefore, ABC company consider Cu Chi the best place to
build industrial zone.
USING LP PROGRAMMING TO CHOOSE DISTRIBUTION CENTERS
AND RETAIL STORES
0 Firstly, we find the distance between plant and distribution centers, from

distribution centers to retail stores and the radius of each province.

0 Multiply this with the transportation cost given to have the cost per

product.

0 We will then find the demand for each store in each month
0 We will then solve 2 LP problems to select the distribution centers and

retails stores
Distance

HCMC Can Tho Da Nang

Ha Noi

Distance (km)

HCMC

Transportation cost
($/product)

(km)

Kien Giang

248

37.2

Plant-

Can Tho

168

25.2

center

Vung Tau

129

19.35

Cu Chi

Binh Thuan

190

28.5

Khanh Hoa

441

66.15

Binh Dinh

649

97.35

Da Nang

872

130.8

Hue

1097

164.55

Nghe An

1323

198.45

Ha Noi

1710

256.5

Lai Chau

1996

299.4

Hai Phong

1639

245.85

Lang Son

1761

264.15

Cao Bang

1886

282.9

TC
Holding
cost at
centers

60
1.5
0.02

181
2.715
0.015

829
8.29
0.01

1606
16.06
0.025
Distance (km)

Can Tho

Transportation cost

Distance (km)

Da Nang

($/product)

Transportation cost
($/product)

Kien Giang

128

12.8

Kien Giang

1246

149.52

HCMC

168

16.8

Can Tho

1032

123.84

Vung Tau

293

29.3

HCMC

872

104.64

Binh Thuan

366

36.6

Vung Tau

851

102.12

Khanh Hoa

616

61.6

Binh Thuan

759

91.08

Binh Dinh

854

85.4

Khanh Hoa

539

64.68

Da Nang

1032

103.2

Binh Dinh

290

34.8

Hue

1265

126.5

Hue

87

10.44

Nghe An

1371

137.1

Nghe An

568

68.16

Ha Noi

1877

187.7

Ha Noi

763

91.56

Lai Chau

1946

194.6

Lai Chau

1110

133.2

Hai Phong

1650

165

Hai Phong

784

94.08

Lang Son

1767

176.7

Lang Son

952

114.24

Cao Bang

1897

189.7

Cao Bang

1031

123.72
Distance (km)

Ha Noi

Transportation cost

Location

Distance

Holding cost at

($/product)

($/product)

Transportation cost

stores

Kien Giang

1958

293.7

Kien Giang

45

1.26

0.01

Can Tho

1877

281.55

Can Tho

21

0.651

0.015

HCMC

1710

256.5

HCMC

25.8

0.903

0.018

Vung Tau

1662

249.3

Vung Tau

25.2

0.756

0.015

Binh Thuan

1503

225.45

Binh Thuan

49.9

1.3473

0.01

Khanh Hoa

1262

189.3

Khanh Hoa

40.8

1.224

0.008

1049

157.35

Binh Dinh

43.9

1.317

0.01

Da Nang

Da Nang

20

0.7

0.019

763

114.45

Hue

0.012

658

98.7

40

1.24

Hue

Nghe An

0.015

292

72.5

2.1025

43.8

Ha Noi

32.6

1.141

0.017

Lai Chau

402

60.3

Lai Chau

53.7

1.6647

0.01

Hai Phong

103

15.45

Hai Phong

22

0.726

0.009

Lang Son

154

23.1

Lang Son

51.5

1.442

0.008

Cao Bang

272

40.8

Cao Bang

46.2

1.386

0.01

Binh Dinh

Nghe An

Now we find the demands for each month for each stores
Month

Kien Giang

Can Tho

HCMC

Vung Tau

Month

Binh Thuan

Khanh Hoa

Binh Dinh

Da Nang

1

3780

5040

6300

4620

1

3360

4620

4200

5460

2

3150

4200

5250

3850

2

2800

3850

3500

4550

3

3960

5280

6600

4840

3

3520

4840

4400

5720

4

2610

3480

4350

3190

4

2320

3190

2900

3770

5

4770

6360

7950

5830

5

4240

5830

5300

6890

6

3420

4560

5700

4180

6

3040

4180

3800

4940

7

4050

5400

6750

4950

7

3600

4950

4500

5850

8

5580

7440

9300

6820

8

4960

6820

6200

8060

9

4680

6240

7800

5720

9

4160

5720

5200

6760

10

3510

4680

5850

4290

10

3120

4290

3900

5070

11

5040

6720

8400

6160

11

4480

6160

5600

7280

12

6300

8400

10500

7700

12

5600

7700

7000

9100
Month

Hue

Nghe An

Ha Noi

Lai Chau

Month

Hai Phong

Lang Son

Cao Bang

1

4200

3780

6300

4200

1

5040

2940

2940

2

3500

3150

5250

3500

2

4200

2450

2450

3

4400

3960

6600

4400

3

5280

3080

3080

4

2900

2610

4350

2900

4

3480

2030

2030

5

5300

4770

7950

5300

5

6360

3170

3170

6

3800

3420

5700

3800

6

4560

2660

2660

7

4500

4050

6750

4500

7

5400

3150

3150

8

6200

5580

9300

6200

8

7440

4340

4340

9

5200

4680

7800

5200

9

6240

3640

3640

10

3900

3510

5850

3900

10

4680

2730

2730

11

5600

5040

8400

5600

11

6720

3920

3920

12

7000

6300

10500

7000

12

8400

4900

4900
0 Objective function: Total transportation cost from plant to centers + total

transportation cost from centers to retailers + holding cost at centers.

0 Constraints:
 Number of item shipped from plant to centers should be less than or equal
the capacity of each center
 Number of item shipped from centers to retailers should be less than or
equal the capacity of each retail stores
 Number of item shipped from center to retail stores should be less than or
equal 15000
 Number of item shipped from centers to retailers should be less than or
equal the number shipped to that center
 We assume that the number of item shipped to one center will be equal the
number of item shipped out of that center in a month.
Results are as following
X

Y

Z

W

AA3

AB2

AC8

AD11

15000

15000

15000

15000

15000

15000

15000

15000

Comparing total cost
Cost

HCMC

Can Tho

Da Nang

Ha Noi

Fixed cost

500,000

450,000

500,000

600,000

Operating cost

20000

14000

16000

20000

Transportation

0

0

0

0

Holding cost at center

22800

40950

124500

241275

+ TC plant-center
Total

542800

504950

640500

861275
Based on the data analysis, the ABC Company should choose to build new
plant in Cu Chi, and 2 distribution centers in HCMC and Can Tho to provide
its products to HCMC, Can Tho, Da Nang, Ha Noi.

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Report of qm project group 15

  • 1. PROJECT-GROUP 15 Group members Nguyễn Thị Mai Hương Nguyễn Thị Tường Vi Trần Hữu Vịnh Giang Võ Hoàng Thanh Thủy Angelique Pattrick Yuson BABAIU11262 BABAIU11059 BABAIU11137 BABAUN11092 BABAIU11284
  • 2. USING AHP TO CHOOSE NEW PLANT 0 The company uses the following for pairwise comparisons: 1- equally preferred 2- equally to moderate preferred 3- moderate preferred 4 - moderate to strongly preferred 5- strongly preferred 6- strongly to very strongly preferred 7- very strongly preferred 8- very to extremely strongly preferred 9- extremely preferred
  • 3. Looking at the factor “area”, based on some data collected, the company finds that: 0 Amata is strongly preferred to Cu Chi 0 Amata is moderate to strongly preferred to Vn – Sin 0 Nhon Trach is very to extremely strongly preffered to Cu Chi 0 Nhon Trach is moderate preferred to Vn- Sin. 0 Vietnam- Sin is strongly preferred to Cu Chi 0 Nhon Trach is equally preferred to Amata
  • 4. Looking at the factor “power price” and based on some collected data, the company finds that: 0 Nhon Trach is very strongly preferred to Cu Chi 0 Nhon Trach is strongly preferred to Amata 0 Nhon Trach is very to extremely strongly preffered to Vn- Sin 0 Amata is moderate to strongly preferred to VN-Sin 0 Cu Chi is equally preferred to Amata 0 Cu Chi is strongly to very strongly preferred to Vn- Sin
  • 5. Looking at the factor labor force and some collected data, the company finds that: 0 Cu Chi is very to extremely strongly preferred to Amata 0 Cu Chi is strongly preferred to Nhon Trach 0 Amatar is moderate preferred to Vina-Sin 0 Cu Chi is 8- very to extremely strongly preferred to Vina-Sin 0 Nhon Trach is very strongly preferred to Vina-Sin 0 Nhon Trach is moderate preferred to Amata
  • 6. Looking at the factor “waste water treatment plant” and based on some collected data, the company finds that: 0 Vina-sin is strongly to very strongly preferred to Amata 0 Vina- Sin is very to extremely strongly preffered to Cu Chi 0 Vina-Sin is very strongly preferred to Nhon Trach 0 Amata is moderate to strongly preferred to Cu Chi 0 Nhon Trach is moderate preferred to Cu Chi 0 Amata is equally to moderate preferred to Nhon Trach
  • 7. VN - Singapore Nhơn Trạch Labour Force Củ Chi Amata VN - Singapore Nhơn Trạch Power Price Củ Chi Amata VN - Singapore Nhơn Trạch Area Củ Chi Amata VN - Singapore Nhơn Trạch Củ Chi Amata Choosing best industrial zone Treatment
  • 8. Area Area Amata Cu Chi Vn-Sin Nhon Trach Total Amata 1,00 0,20 0,25 1,00 2,45 Cu Chi 5,00 1,00 5,00 8,00 19,00 Vn-Sin 4,00 0,20 1,00 3,00 8,20 Nhon Trach 1,00 0,13 0,33 1,00 2,46 Area Amata Cu Chi Vn-Sin Nhon Trach Amata 0,41 0,08 0,10 0,41 Cu Chi 0,26 0,05 0,26 0,42 Vn-Sin 0,49 0,02 0,12 0,37 1,68 Nhon Trach 0,41 0,05 0,14 0,41 Consistency Vector 0,21 0,65 1,68 0,39 0,05 Row averages 0,16 0,40 From the analysis, the company saw that it is relatively consistent with its responses, so there is need to reevaluate the pairwise comparison responses.
  • 9. Power Price Power Price Amata Cu Chi Vn-Sin Nhon Trach Amata 1,00 1,00 0,25 5,00 Power Price Amata Cu Chi Vn-Sin Nhon Trach Cu Chi 1,00 1,00 0,17 7,00 Amata 0,20 0,20 0,05 1,00 0.15 Row average 0.28 0.05 0.73 Vn-Sin 4,00 6,00 1,00 8,00 Cu Chi 0,11 0,11 0,02 0,76 Vn-Sin 0,21 0,32 0,05 0,42 Nhon Trach 0,20 0,14 0,13 1,00 Nhon Trach 0,14 0,10 0,09 0,68 4.06 Consistency Vector 4.02 4.38 5.27 Consistency Index 0.09 CR 0.1 From the analysis, the company saw that it is relatively consistent with its responses, so there is need to reevaluate the pairwise comparison responses.
  • 10. Labor Force Labor force Amata Cu Chi Vn-Sin 4,19 Nhon Trach Amata 1,00 0,13 3,00 0,33 Cu Chi 8,00 1,00 8,00 5,00 Vn-Sin 0,33 0,13 1,00 0,14 Nhon Trach 3,00 0,20 7,00 4,05 1,00 Labor force Amata Cu Chi Vn-Sin Consistency Vector 4,39 4,04 Nhon Trach Amata 0,13 0,25 0,12 0,19 Cu Chi 0,03 0,06 0,09 0,03 Vn-Sin 0,77 0,50 0,70 0,06 0,19 0,10 0,10 0.08 CR 0.09 0,68 Nhon Trach CI From the analysis, the company saw that it is relatively consistent with its responses, so there is need to reevaluate the pairwise comparison responses.
  • 11. Waste Water Treatment Waste water Amata Treatment Cu Chi Vn-Sin Nhon Trach Amata 1,00 4,00 0,17 2,00 Cu Chi 0,25 1,00 0,13 0,33 Vn-Sin 6,00 8,00 1,00 0,50 3,00 0,14 4,19 4,05 4,39 7,00 Nhon Trach Consistenc y Vector 1,00 4,04 CI CR Waste Water Amata Treatment Cu Chi Vn-Sin 0.06 0.06 Nhon Trach Amata 0,13 0,25 0,12 0,19 Cu Chi 0,03 0,06 0,09 0,03 Vn-Sin 0,77 0,50 0,70 0,68 Nhon Trach 0,06 0,19 0,10 0,10 From the analysis, the company saw that it is relatively consistent with responses, so no need to reevaluate the pairwise comparison responses.
  • 12. Determining factor weights Area Power Price Labour Force Treatment Area 1,00 3,00 0,25 0,50 Power Proce 0,33 1,00 0,20 0,25 Labour Force 4,00 5,00 1,00 5,00 0,20 Labour Force 1,00 Treatment Treatement 2,00 Area 4,00 Power Price Area 0,14 0,23 0,15 0,07 Power Proce 0,05 0,08 0,12 0,04 Labour Force 0,55 0,38 0,61 0,74 Treatement 0,27 0,31 0,12 0,15
  • 13. 0.15 0.07 0.57 0.21 Row average Factor Weight Table 0,61 Area 0,61 0,29 2,57 Weight sum factors Power price 0,29 0,90 Labor Force 2,57 4,10 Consistency vector CI 0.08 CR 0.09 4,08 Waste water treatment 4,52 4,25 0,90
  • 14. Overall ranking After the factor weights have been determined, ABC multiplied the factor evaluations in “Factor evaluations“ table times the “factor weights” table above. It gives him the overall ranking. Because Cu Chi had the highest priority, therefore, ABC company consider Cu Chi the best place to build industrial zone. 0,68 0,07 Amata Cu Chi Labor Force 0,57 Vn-Sin 0,83 Waste water treatment 0,21 Nhon Trach 1,13 Area 0,15 Power price 1,76 Because Cu Chi had the highest priority, therefore, ABC company consider Cu Chi the best place to build industrial zone.
  • 15. USING LP PROGRAMMING TO CHOOSE DISTRIBUTION CENTERS AND RETAIL STORES 0 Firstly, we find the distance between plant and distribution centers, from distribution centers to retail stores and the radius of each province. 0 Multiply this with the transportation cost given to have the cost per product. 0 We will then find the demand for each store in each month 0 We will then solve 2 LP problems to select the distribution centers and retails stores
  • 16. Distance HCMC Can Tho Da Nang Ha Noi Distance (km) HCMC Transportation cost ($/product) (km) Kien Giang 248 37.2 Plant- Can Tho 168 25.2 center Vung Tau 129 19.35 Cu Chi Binh Thuan 190 28.5 Khanh Hoa 441 66.15 Binh Dinh 649 97.35 Da Nang 872 130.8 Hue 1097 164.55 Nghe An 1323 198.45 Ha Noi 1710 256.5 Lai Chau 1996 299.4 Hai Phong 1639 245.85 Lang Son 1761 264.15 Cao Bang 1886 282.9 TC Holding cost at centers 60 1.5 0.02 181 2.715 0.015 829 8.29 0.01 1606 16.06 0.025
  • 17. Distance (km) Can Tho Transportation cost Distance (km) Da Nang ($/product) Transportation cost ($/product) Kien Giang 128 12.8 Kien Giang 1246 149.52 HCMC 168 16.8 Can Tho 1032 123.84 Vung Tau 293 29.3 HCMC 872 104.64 Binh Thuan 366 36.6 Vung Tau 851 102.12 Khanh Hoa 616 61.6 Binh Thuan 759 91.08 Binh Dinh 854 85.4 Khanh Hoa 539 64.68 Da Nang 1032 103.2 Binh Dinh 290 34.8 Hue 1265 126.5 Hue 87 10.44 Nghe An 1371 137.1 Nghe An 568 68.16 Ha Noi 1877 187.7 Ha Noi 763 91.56 Lai Chau 1946 194.6 Lai Chau 1110 133.2 Hai Phong 1650 165 Hai Phong 784 94.08 Lang Son 1767 176.7 Lang Son 952 114.24 Cao Bang 1897 189.7 Cao Bang 1031 123.72
  • 18. Distance (km) Ha Noi Transportation cost Location Distance Holding cost at ($/product) ($/product) Transportation cost stores Kien Giang 1958 293.7 Kien Giang 45 1.26 0.01 Can Tho 1877 281.55 Can Tho 21 0.651 0.015 HCMC 1710 256.5 HCMC 25.8 0.903 0.018 Vung Tau 1662 249.3 Vung Tau 25.2 0.756 0.015 Binh Thuan 1503 225.45 Binh Thuan 49.9 1.3473 0.01 Khanh Hoa 1262 189.3 Khanh Hoa 40.8 1.224 0.008 1049 157.35 Binh Dinh 43.9 1.317 0.01 Da Nang Da Nang 20 0.7 0.019 763 114.45 Hue 0.012 658 98.7 40 1.24 Hue Nghe An 0.015 292 72.5 2.1025 43.8 Ha Noi 32.6 1.141 0.017 Lai Chau 402 60.3 Lai Chau 53.7 1.6647 0.01 Hai Phong 103 15.45 Hai Phong 22 0.726 0.009 Lang Son 154 23.1 Lang Son 51.5 1.442 0.008 Cao Bang 272 40.8 Cao Bang 46.2 1.386 0.01 Binh Dinh Nghe An Now we find the demands for each month for each stores
  • 19. Month Kien Giang Can Tho HCMC Vung Tau Month Binh Thuan Khanh Hoa Binh Dinh Da Nang 1 3780 5040 6300 4620 1 3360 4620 4200 5460 2 3150 4200 5250 3850 2 2800 3850 3500 4550 3 3960 5280 6600 4840 3 3520 4840 4400 5720 4 2610 3480 4350 3190 4 2320 3190 2900 3770 5 4770 6360 7950 5830 5 4240 5830 5300 6890 6 3420 4560 5700 4180 6 3040 4180 3800 4940 7 4050 5400 6750 4950 7 3600 4950 4500 5850 8 5580 7440 9300 6820 8 4960 6820 6200 8060 9 4680 6240 7800 5720 9 4160 5720 5200 6760 10 3510 4680 5850 4290 10 3120 4290 3900 5070 11 5040 6720 8400 6160 11 4480 6160 5600 7280 12 6300 8400 10500 7700 12 5600 7700 7000 9100
  • 20. Month Hue Nghe An Ha Noi Lai Chau Month Hai Phong Lang Son Cao Bang 1 4200 3780 6300 4200 1 5040 2940 2940 2 3500 3150 5250 3500 2 4200 2450 2450 3 4400 3960 6600 4400 3 5280 3080 3080 4 2900 2610 4350 2900 4 3480 2030 2030 5 5300 4770 7950 5300 5 6360 3170 3170 6 3800 3420 5700 3800 6 4560 2660 2660 7 4500 4050 6750 4500 7 5400 3150 3150 8 6200 5580 9300 6200 8 7440 4340 4340 9 5200 4680 7800 5200 9 6240 3640 3640 10 3900 3510 5850 3900 10 4680 2730 2730 11 5600 5040 8400 5600 11 6720 3920 3920 12 7000 6300 10500 7000 12 8400 4900 4900
  • 21. 0 Objective function: Total transportation cost from plant to centers + total transportation cost from centers to retailers + holding cost at centers. 0 Constraints:  Number of item shipped from plant to centers should be less than or equal the capacity of each center  Number of item shipped from centers to retailers should be less than or equal the capacity of each retail stores  Number of item shipped from center to retail stores should be less than or equal 15000  Number of item shipped from centers to retailers should be less than or equal the number shipped to that center  We assume that the number of item shipped to one center will be equal the number of item shipped out of that center in a month.
  • 22. Results are as following X Y Z W AA3 AB2 AC8 AD11 15000 15000 15000 15000 15000 15000 15000 15000 Comparing total cost Cost HCMC Can Tho Da Nang Ha Noi Fixed cost 500,000 450,000 500,000 600,000 Operating cost 20000 14000 16000 20000 Transportation 0 0 0 0 Holding cost at center 22800 40950 124500 241275 + TC plant-center Total 542800 504950 640500 861275
  • 23. Based on the data analysis, the ABC Company should choose to build new plant in Cu Chi, and 2 distribution centers in HCMC and Can Tho to provide its products to HCMC, Can Tho, Da Nang, Ha Noi.