Scribd
Upload
7 views

PKCL Analysis

The document provides detailed case data for transportation options (Road, Rail-Wagon, Rail-Rake) to various destinations, including demand, lead times, costs, and safety stock calculations. It compares the total costs associated with each transportation mode, highlighting the cost components and their percentages. The analysis indicates significant cost differences between the modes, with Road being the most expensive and Rail-Wagon offering potential savings.

Uploaded by

navyajoshi881
Copyright
© © All Rights Reserved
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
7 views

PKCL Analysis

The document provides detailed case data for transportation options (Road, Rail-Wagon, Rail-Rake) to various destinations, including demand, lead times, costs, and safety stock calculations. It compares the total costs associated with each transportation mode, highlighting the cost components and their percentages. The analysis indicates significant cost differences between the modes, with Road being the most expensive and Rail-Wagon offering potential savings.

Uploaded by

navyajoshi881
Copyright
© © All Rights Reserved
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
You are on page 1/ 14

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
Capacit nal &
y Storag Handling
(tonne) e Cost*
(Rs/ton (Rs/tonne)
ne/mon
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
S.No Destination Demand Demand Expected
per day demand
during
lead time

1 Karad 24000 65.75 394.52


2 Kirloskar 16000 43.84 263.01
3 Pune 16000 43.84 263.01
4 Kalyan 9000 24.66 147.95
SS Iavg C D B A E
Safety Stock Avg Pipeline SS Avg. Pipeline Transport Transport Local
using Normal Inventory Inv. Cost Inventory Inventory ation Cost Trans.
distribution d*T/2 holding Cost Cost per Handl.
cost ton Cost

62.44 197.26 395 17484 55233 88373 1110 26640000 -


41.63 131.51 263 11656 36822 58915 1060 16960000 192000
41.63 131.51 263 11656 36822 58915 940 15040000 320000
23.42 73.97 148 6557 20712 33140 950 8550000 180000
47353 149589 239342 67190000 692000
F TC
Additional Additional Total
Storage Qty Storage Cost for
Cost each city

- - 26801090
0 0 17259393
0 0 15467393
0 0 8790409
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
S.No Destination Demand Demand Expected
per day demand
during
lead time

1 Karad 24000 65.75 4109.59


2 Kirloskar 16000 43.84 2739.73
3 Pune 16000 43.84 2739.73
4 Kalyan 9000 24.66 1541.10
SS Iavg C D B A
Safety Stock Avg Pipeline SS Avg. Pipeline Transport Transport
using Normal Inventory Inv. Cost Inventory Inventory ation Cost
distribution d*T/2 holding Cost Cost per
cost ton

643.65 2054.79 4109.59 180222 575342 552329 695 16680000


429.10 1369.86 2739.73 120148 383562 368219 695 11120000
429.10 1369.86 2739.73 120148 383562 368219 670 10720000
241.37 770.55 1541.10 67583 215753 207123 630 5670000
488101 1558219 1495890 44190000
E F TC
Local Additional Additional Total Cost
Trans. Storage Qty Storage for each
Handl. Cost city
Cost

- - - 17987893
192000 2189 63828 12247756
320000 2189 106379 12018308
180000 802 30503 6370963
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
S.No Destination Demand Demand Order Rev.
per day Qty. Period

1 Karad 24000 65.75 1600 24.33


2 Kirloskar 16000 43.84 1600 36.50
3 Pune 16000 43.84 1600 36.50
4 Kalyan 9000 24.66 1600 64.89
365/T SS Iavg C D B
No.of Expected Safety Stock Avg Pipeline SS Cost Avg. Pipeline
orders demand using Normal Inventory Inv. Inventory Inventory
during distribution Q/2 holding Cost
lead time cost

15 1347.95 464.14 800 1600 129960 224000 184110


10 898.63 309.43 800 1600 86640 224000 122740
10 898.63 309.43 800 1600 86640 224000 122740
6 505.48 174.05 800 1600 48735 224000 69041
351975 896000 498630
A E F TC
Transpor Transport Local Additional Addition Total
tation Cost Trans. Storage al Cost for
Cost per Handl. Qty Storage each city
ton Cost Cost

660 15840000 - - - 16378069


660 10560000 192000 929 19706 11205086
640 10240000 320000 929 32844 11026223
600 5400000 180000 794 28768 5950544
42040000 692000 81318 44559922
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
Tag Cost Components
RS % RS %
A Transport Cost 67190000 98.3 44190000 90.9
B Pipeline Inventory Cost 239342 0.4 1495890 3.1
C SS Cost 47353 0.1 488101 1.0
D Avg. Inventory holding cos 149589 0.2 1558219 3.2
E Local Trans. Handl. Cost 692000 1.0 692000 1.4
F Additional Storage Cost 0 0.0 200710 0.4
TC Total Cost for each city 68318284 100 48624920 100

Cost comparision wrt to Carrier 19693364 Road


(Saving)
Option C : Rake
RS %
42040000 94.3
498630 1.1
351975 0.8
896000 2.0
692000 1.6
81318 0.2
44559922 100

23758362 Road
4064998 Wagon

You might also like