Product Delivery

PART-II

The following data is obtained from the global packaging and delivery firm UPS (United parcel service) for the standard rates of shipment and the container specifications mainly used for inland road transports.

The products specification given in this problem is from the catalogue of Philips consumer lightening products. The products used being the home furnishing products.

Analysis:

Problem formulation:

An ABC packaging and delivery firm engages in road transport of consumer electronic goods for an electronic goods manufacturing company “PHILIPS”. It mainly carries its activities between specific locations within a country. The firm mainly ships three kinds of products which are (i) ECO STAR (ii) REFLEX (iii) CLEO. The specifications for these products are as follows.

CONSUMER LIGHTENING PHILIPS

SR.NO PRODUCT QTY/BOX SIZE OF BOX GROSS WEIGHT (Kg) VOLUME (CU.M) VIEW

1 ECO STAR 12 1253 X 194 X 139 16 0.034

2 REFLEX 8 306 X 272 X 302 6.4 0.025

3 CLEO 8 290 X 290 X 250 2.85 0.021

The firm uses two types of containers designated as 20’ DFC and 40’ DFC. DFC indicates dry freight container which are mostly used for shipping dry products. Technical specification for these containers is as below.

CONTAINER SPECIFICATION

SR.NO DESIGNATION CARRYING CAPACITY (Kgs) VOLUME (CU.M) INTERIOR DIMENSION

1 20' DFC* 28000 33.2 5898 X 2352 X 2393

2 40' DFC* 30000 67.6 12032 X 2352 X 2393

* DRY FREIGHT CONTAINER

The constraints are being the capacity of containers in terms of volume. Due to custom regulation and labor scarcity the firm was forced to ship a specific number of boxes for each product. The maximum it can ship 800 for ECO STAR, 1250 for REFLEX and 2000 for CLEO. Other problems with the shipment were the capacity utilization which mandated the firm to ship the product 1 in 20’DFC only and the product 3 in 40’ DFC. Product 2 can be shipped in any of the container.

After complete evaluation of the process for shipment and the costs involved in it the firm has found that the profit per box for product are:

ECO STAR- $ 75/box

REFLEX- $60/box

CLEO- $85/box

FORMULATE THIS LINEAR PROGRAMMING PROBLEM TO MAXIMIZE THE TOTAL PROFIT