report on study on vehicle routing

8/11/2019 Report on Study on Vehicle Routing

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STUDY ON VEHICLE ROUTING

FOR NANDHA DAIRIES

Under the guidance of

Prof. SEETHARAMAN

In partial fulfillment for the award of the degree

Of

SCHOOL OF MANAGEMENT

Kattankulatur-603203, Tamilnadu


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TABLE OF CONTENT

I Certificate of guide ... i

II Letter from Organization ... ii

III Acknowledgement ... iii

IV Executive Summary ... iv

1 Introduction

1.1 Industry Profile 2

1.2 Company Profile 22

2 Objectives & Scope

2.1 Objectives of the Study . 33

2.2 Scope of the study ................... . 33

2.3 Limitations 33

2.4 Review of literature. 33

3 Project Overview

3.1 Assignment algorithm .... 35

3.2 Unbalanced Assignment Problem ........ 36

4 Research Methodology

4.1 Method of data collection . 38

4.2 Types of Data 38

4.3 Collection Routes .. 39

5 Data Analysis and Interpretation

5.1 Assignment Problem with Cost .. 42

5.2 Assignment Problem with Time .. ... 44

6 Conclusions

6.1 Findings .... 54

6.2 Suggestion ... 54

6.3 Conclusions .... .. 54

7 Bibliography 55


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CERTIFICATE OF THE GUIDE

This is to certify that the project work titled STUDY ON VEHICLE ROUTING FOR

NANDHA DAIRIES is a bonafide work of Mr. KAVINKUMAR SAMPATH,Registration

No: 3511210123 carried out in partial fulfillment for the award of the degree of Master of

Business Administration of SRM University under my guidance. This project work is original

and not submitted earlier for the award of any degree / diploma or Associate-ship of any other

University/Institution.

Signature of the Guide Signature of Student

Place:

Date:

DEAN External Examiner

SRM University

Date: Date


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ACKNOWLEDGEMENT

A project of this nature needs co-operation and support from many for successful

completion. In this regard, I am fortunate to express my heartfelt thanks to respected Dr.

JAYSHREE SURESH, Dean (SRM School of Management) for her valuable advice and

support in completion of this project.

I take the privilege in expressing my sincere thanks to my guide and supervisor Prof.

SEETHARAMAN, Professor, Faculty of SRM School of Management for the consistent

encouragement provided towards the project.

I am also profoundly grateful to Mr. M. RAJA GOPALAN, Head, Marketing

Team, for guidance in the organization towards the achievement of the project and have

been influential in the project guidance in Logistics.

Last but not least, I express my thanks to my parents, friends and staff members. Who

have helped and encouraged me during the summer project period so as to complete it

successfully.


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CHAPTER 1

INTRODUCTION


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1. INTRODUCTION

1.1 INDUSTRY PROFILE:

Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore to

entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest

growing markets for milk and milk products. A bagful of 'pearls' awaits the international dairy

processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the

galloping progress around the world. As he expands his overseas operations to India many

profitable options await him. He may transfer technology, sign joint ventures or use India as a

sourcing center for regional exports. The liberalization of the Indian economy beckons to MNC's

and foreign investors alike.

Indias dairy sector is expected to triple its production in the next 10 years in view of

expanding potential for export to Europe and the West. Moreover with WTO regulations

expected to come into force in coming years all the developed countries which are among big

exporters today would have to withdraw the support and subsidy to their domestic milk products

sector. Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents,

compared with the U.S' 63 cents, and Japans $2.8 dollars. Also to take advantage of this lowestcost of milk production and increasing production in the country multinational companies are

planning to expand their activities here. Some of these milk producers have already obtained

quality standard certificates from the authorities. This will help them in marketing their products

in foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of around

33% per annum to around Rs.43,500 crores by year 2005. This growth is going to come from the

greater emphasis on the processed foods sector and also by increase in the conversion of milk

into milk products. By 2005, the value of Indian dairy produce is expected to be Rs 10,00,000

million. Presently the market is valued at around Rs7,00,000mn


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Background

India with 134 million cows and 125mn buffaloes has the largest population of cattle in

the world. Total cattle population in the country as on October'00 stood at 313mn. More than

fifty percent of the buffaloes and twenty percent of the cattle in the world are found in India and

most of these are milch cows and milch buffaloes.

Indian dairy sector contributes the large share in agricultural gross domestic products. Presently

there are around 70,000 village dairy cooperatives across the country. The co-operative societies

are federated into 170 district milk producers unions, which is turn has 22-state cooperative dairy

federation. Milk production gives employment to more than 72mn dairy farmers. In terms of

total production, India is the leading producer of milk in the world followed by USA. The milk

production in 1999-00 is estimated at 78mn MT as compared to 74.5mn MT in the previous year.

This production is expected to increase to 81mn MT by 2000-01. Of this total produce of 78mn

cows' milk constitute 36mn MT while rest is from other cattle.

While world milk production declined by 2 per cent in the last three years, according to FAO

estimates, Indian production has increased by 4 per cent. The milk production in India accounts

for more than 13% of the total world output and 57% of total Asia's production. The top five

milk producing nations in the world are India ,USA, Russia, Germany and France.

Although milk production has grown at a fast pace during the last three decades (courtesy:

Operation Flood), milk yield per animal is very low. The main reasons for the low yield are

Lack of use of scientific practices in milching.

Inadequate availability of fodder in all seasons.

Unavailability of veterinary health services.


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Milk Yield comparison:

Country Milk Yield (Kgs per year)

USA 7002

UK 5417

Canada 5348

New Zealand 2976

Pakistan 1052

India 795

World (Average) 2021

Production of milk in India

World's major milk producers

Country 2011-12 2012-13

India 71 74.5

USA 71 71

Russia 34 33

Germany 27 27

France 24 24

Pakistan 21 22

Brazil 21 27

UK 14 14

Ukraine 15 14

Poland 12 12

New Zealand 11 12

Netherlands 11 11


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Italy 10 10

Australia 9 10

Million MT

Operation Flood

The transition of the Indian milk industry from a situation of net import to that of surplus

has been led by the efforts of National Dairy Development Board's Operation Flood. programme

under the aegis of the former Chairman of the board Dr. Kurien.

Launched in 1970, Operation Flood has led to the modernization of India's dairy sector

and created a strong network for procurement processing and distribution of milk by the co-

operative sector. Per capita availability of milk has increased from 132 gm per day in 1950 to

over 220 gm per day in 1998. The main thrust of Operation Flood was to organize dairy

cooperatives in the milkshed areas of the village, and to link them to the four Metro cities, which

are the main markets for milk. The efforts undertaken by NDDB have not only led to enhanced

production, improvement in methods of processing and development of a strong marketing

network, but have also led to the emergence of dairying as an important source of employment

and income generation in the rural areas. It has also led to an improvement in yields, longer

lactation periods, shorter calving intervals, etc through the use of modern breeding techniques.

Establishment of milk collection centers, and chilling centers has enhanced life of raw milk and

enabled minimization of wastage due to spoilage of milk. Operation Flood has been one of the

world's largest dairy development programme and looking at the success achieved in India by

adopting the co-operative route, a few other countries have also replicated the model of India's

White Revolution.

Fresh Milk

Over 50% of the milk produced in India is buffalo milk, and 45% is cow milk. The

buffalo milk contribution to total milk produce is expected to be 54% in 2000. Buffalo milk has

3.6% protein, 7.4% fat, 5.5% milk sugar, 0.8% ash and 82.7% water whereas cow milk has 3.5%

protein, 3.7% fat, 4.9% milk sugar, 0.7% ash and 87% water. While presently (for the year 2000)


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the price of Buffalo milk is ruling at $261-313 per MT that of cow is ruling at $170-267 per MT.

Fresh pasteurized milk is available in packaged form. However, a large part of milk consumed in

India is not pasteurized, and is sold in loose form by vendors. Sterilized milk is scarcely

available in India.

Packaged milk can be divided according to fat content as follows,

Whole (full cream) milk - 6% fat

Standardized (toned) milk - 4.5% fat

Doubled toned (low fat) milk - 3% fat

Another category of milk, which has a small market is flavoured milk.

The Indian Market - A Pyramid

Consumer Habits And Practices

Milk has been an integral part of Indian food for centuries. The per capita availability of

milk in India has grown from 172 gm per person per day in 1972 to 182gm in 1992 and 203 gm

in 1998-99.This is expected to increase to 212gms for 1999-00. However a large part of the

population cannot afford milk. At this per capita consumption it is below the world average of

285 gm and even less than 220 gm recommended by the Nutritional Advisory Committee of the

Indian Council of Medical Research.

There are regional disparities in production and consumption also. The per capita

availability in the north is 278 gm, west 174 gm, south 148 gm and in the east only 93 gm per

person per day. This disparity is due to concentration of milk production in some pockets and

high cost of transportation. Also the output of milk in cereal growing areas is much higher than

elsewhere which can be attributed to abundant availability of fodder, crop residues, etc which

have a high food value for milch animals.

In India about 46 per cent of the total milk produced is consumed in liquid form and 47

per cent is converted into traditional products like cottage butter, ghee, paneer, khoya, curd,

malai, etc. Only 7 per cent of the milk goes into the production of western products like milk


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powders, processed butter and processed cheese. The remaining 54% is utilized for conversion to

milk products. Among the milk products manufactured by the organized sector some of the

prominent ones are ghee, butter, cheese, ice creams, milk powders, malted milk food, condensed

milk infants foods etc. Of these ghee alone accounts for 85%.

It is estimated that around 20% of the total milk produced in the country is consumed at

producer-household level and remaining is marketed through various cooperatives, private

dairies and vendors. Also of the total produce more than 50% is procured by cooperatives and

other private dairies.

While for cooperatives of the total milk procured 60% is consumed in fluid form and rest

is used for manufacturing processed value added dairy products; for private dairies only 45% is

marketed in fluid form and rest is processed into value added dairy products like ghee, makhan

etc. Still, several consumers in urban areas prefer to buy loose milk from vendors due to the

strong perception that loose milk is fresh. Also, the current level of processing and packaging

capacity limits the availability of packaged milk.

The preferred dairy animal in India is buffalo unlike the majority of the world market,

which is dominated by cow milk. As high as 98% of milk is produced in rural India, which caters

to 72% of the total population, whereas the urban sector with 28% population consumes 56% oftotal milk produced. Even in urban India, as high as 83% of the consumed milk comes from the

unorganized traditional sector.

Presently only 12% of the milk market is represented by packaged and branded

pasteurized milk, valued at about Rs. 8,000 crores. Quality of milk sold by unorganized sector

however is inconsistent and so is the price across the season in local areas. Also these vendors

add water and caustic soda, which makes the milk unhygienic.

India's dairy market is multi-layered. It's shaped like a pyramid with the base made up of

a vast market for low-cost milk. The bulk of the demand for milk is among the poor in urban

areas whose individual requirement is small, maybe a glassful for use as whitener for their tea

and coffee. Nevertheless, it adds up to a sizable volume - millions of litres per day. In the major

cities lies an immense growth potential for the modern sector. Presently, barely 778 out of 3,700


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cities and towns are served by its milk distribution network, dispensing hygienically packed

wholesome, quality pasteurized milk. According to one estimate, the packed milk segment would

double in the next five years, giving both strength and volume to the modern sector. The narrow

tip at the top is a small but affluent market for western type milk products.

Growing Volumes

The effective milk market is largely confined to urban areas, inhabited by over 25 per

cent of the country's population. An estimated 50 per cent of the total milk produced is consumed

here. By the end of the twentieth century, the urban population is expected to increase by more

than 100 million to touch 364 million in 2000 a growth of about 40 per cent. The expected rise in

urban population would be a boon to Indian dairying. Presently, the organized sector both

cooperative and private and the traditional sector cater to this market.

The consumer access has become easier with the information revolution. The number of

households with TV has increased from 23 million in 1989 to 45 million in 1995. About 34 per

cent of these households in urban India have access to satellite television channel.

Potential for further growth

Of the three A's of marketing - availability, acceptability and affordability, Indian

dairying is already endowed with the first two. People in India love to drink milk. Hence no

efforts are needed to make it acceptable. Its availability is not a limitation either, because of the

ample scope for increasing milk production, given the prevailing low yields from dairy cattle. It

leaves the third vital marketing factor affordability. How to make milk affordable for the large

majority with limited purchasing power? That is essence of the challenge. One practical way is to

pack milk in small quantities of 250 ml or less in polythene sachets. Already, the glass bottle for

retailing milk has given way to single-use sachets which are more economical. Another viable

alternative is to sell small quantities of milk powder in mini-sachets, adequate for two cups of tea

or coffee.


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Marketing Strategy for 2000 AD

Two key elements of marketing strategy for 2000 AD are: Focus on strong brands and,

product mix expansion to include UHT milk, cheese, ice creams and spreads. The changing

marketing trends will see the shift from generic products to the packaged quasi, regular and

premium brands. The national brands will gradually edge out the regional brands or reduce their

presence. The brand image can do wonders to a product's marketing as is evident from the words

of Perfume Princess Coco Channel: In the factory, we pack perfume; in the market, we sell hope!

Emerging Dairy Markets

Food service institutional market:It is growing at double the rate of consumer market

Defense market:An important growing market for quality products at reasonable prices

Ingredients market: A boom is forecast in the market of dairy products used as raw

material in pharmaceutical and allied industries

Parlour market:The increasing away-from-home consumption trend opens new vistas

for ready-to-serve dairy products which would ride piggyback on the fast food revolution

sweeping the urban India.

India, with her sizable dairy industry growing rapidly and on the path of modernization,

would have a place in the sun of prosperity for many decades to come. The one index to the

statement is the fact that the projected total milk output over the next 15 years (1995-2010)

would exceed 1457.6 million tonnes which is twice the total production of the past 15 years!

Penetration of milk products

Western table spreads such as butter, margarine and jams are not very popular in India.

All India penetration of butter/ margarine is only 4%. This is also largely represented by urban

areas, where penetration is higher at 9%. In rural areas, butter/ margarine have penetrated in

2.1% of households only. The use of these products in the large metros is higher, with

penetration at 15%.


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Penetration of cheese is almost nil in rural areas and negligible in the urban areas. Per

capita consumption even among the cheese-consuming households is a poor 2.4kg pa as

compared to over 20kg in USA. The lower penetration is due to peculiar food habits, relatively

expensive products and also non-availability in many parts of the country. Butter, margarine and

cheese products are mainly manufactured by organized sector.

Similarly, penetration of ghee is highest in medium sized towns at 37.2% compared to

31.7% in all urban areas and 21.3% in all rural areas. The all India penetration of ghee is 24.1%.

In relative terms, penetration of ghee is significantly higher in North and West, which are milk

surplus regions. North accounts for 57% of ghee consumption and West for 23%, South & East

together account for the balance 20%. A large part of ghee is made at home and by small/ cottage

industry from milk. The relative share of branded products in this category is very low at around1-2%.

Milk powder and condensed milk have not been able to garner any significant consumer

acceptance in India as indicated by a very low 4.7% penetration. The penetration is higher at

8.1% in urban areas and lower at 3.5% in rural areas. Within urban areas, it is relatively higher in

medium sized towns at 8.5% compared to 7.7% in a large metros.

Market Size and Growth

Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued

at Rs470bn. The market is currently growing at round 4% pa in volume terms. The milk surplus

states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra

Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in

these milk surplus States. The top 6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh,

Rajasthan, Tamil Nadu and Gujarat together account for 58% of national production.

Milk production grew by a mere 1% pa between 1947 and 1970. Since the early 70's,

under Operation Flood, production growth increased significantly averaging over 5% pa. About

75% of milk is consumed at the household level which is not a part of commercial dairy industry.

Loose milk has a larger market in India as it is perceived to be fresh by most consumers. In

reality however, it poses a higher risk of adulteration and contamination.


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The production of milk products, i.e. milk products including infant milk food, malted

food, condensed milk & cheese stood at 3.07 lakh MT in 1999. Production of milk powder

including infant milk-food has risen to 2.25 lakh MT in 1999, whereas that of malted food is at

65000 MT. Cheese and condensed milk production stands at 5000 and 11000 MT respectively in

the same year.

Major Players

The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative

Milk Marketing Federation (GCMMF) is the largest player. All other local dairy cooperatives

have their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in Rajasthan, Verka in

Punjab, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu, etc). Other private players include J K

Dairy, Heritage Foods, Indiana Dairy, Dairy Specialties, etc. Amrut Industries, once a leading

player in the sector has turned bankrupt and is facing liquidation.

Packaging Technology

Milk was initially sold door-to-door by the local milkman. When the dairy co-operatives

initially started marketing branded milk, it was sold in glass bottles sealed with foil. Over the

years, several developments in packaging media have taken place. In the early 80's, plastic

pouches replaced the bottles. Plastic pouches made transportation and storage very convenient,

besides reducing costs. Milk packed in plastic pouches/bottles have a shelf life of just 1-2 days ,

that too only if refrigerated. In 1996, Tetra Packs were introduced in India. Tetra Packs are

aseptic laminate packs made of aluminum, paper, board and plastic. Milk stored in tetra packs

and treated under Ultra High Temperature (UHT) technique can be stored for four months

without refrigeration. Most of the dairy co-operatives in Andhra Pradesh, Tamil Nadu, Punjab

and Rajasthan sell milk in tetra packs. However tetra packed milk is costlier by Rs5-7 compared

to plastic pouches. In 1999-00 Nestle launched its UHT milk. Amul too re-launched its Amul

Taaza brand of UHT milk. The UHT milk market is expected to grow at a rate of more than 10-

12% in coming years.


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Export Potential

India has the potential to become one of the leading players in milk and milk product

exports.

Locational advantage: India is located amidst major milk deficit countries in Asia and Africa.

Major importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore,

Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located close to

India.

Low Cost of Production:Milk production is scale insensitive and labour intensive. Due to low

labour cost, cost of production of milk is significantly lower in India.

Concerns in export competitiveness are

Quality:Significant investment has to be made in milk procurement, equipments, chilling and

refrigeration facilities. Also, training has to be imparted to improve the quality to bring it up to

international standards.

Productivity: To have an exportable surplus in the long-term and also to maintain cost

competitiveness, it is imperative to improve productivity of Indian cattle.

There is a vast market for the export of traditional milk products such as ghee, paneer, shrikhand,

rasgolas and other ethnic sweets to the large number of Indians scattered all over the world


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India's exports of milk products

Description

(Quantity, MT: Value,

Rs. million)

2010-11 2011-12 2012-13

Quantity Value Quantity Value Quantity Value

Skimmed milk powder 4,638.62 3,35.32 282.70 19.64 5.00 0.375

Milk and Milk Food for

babies8.27 2.019 111.37 4.27 11.00 2.02

Milk cream 332.23 28.04 1.00 0.084 - -

Sweetened condensed

milk 41.73 2.84 9.22 0.97 60.39 7.22

Whey 78.46 3.75 11.50 1.01 6.00 0.342

Ghee/Butter/Butter oil 7,895.08 431.1 299.97 19.2 4,352.08 2,38.95

Cheese

(a) Fresh 0.10 0.013 - - - -

(b) Processed 5.67 1.20 2.1 0.375 22.10 2.19

(c) Other 66.64 8.35 36.78 0.69 24.84 4.55

TOTAL - 8,72.7 - 52.4 - 2,55.6

What does the Indian Dairy Industry has to Offer to Foreign Investors?

India is a land of opportunity for investors looking for new and expanding markets. Dairy

food processing holds immense potential for high returns. Growth prospects in the dairy food

sector are termed healthy, according to various studies on the subject.

The basic infrastructural elements for a successful enterprise are in place.

Key elements of free market system

raw material (milk) availability

an established infrastructure of technology

supporting manpower


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An entrepreneur's participation is likely to provide attractive returns on the investment in a fast

growing market such as India, along with an export potential in the Middle East, Singapore,

Malaysia, Indonesia, Korea, Thailand, Hong Kong and other countries in the region.

Among several areas of potential participation by NRIs and foreign investors, the following list

outlines a few promising opportunities:

Biotechnology:

Dairy cattle breeding of the finest buffaloes and hybrid cows

Milk yield increase with recombinant somatotropin

Recombinant chymosin, acceptable to vegetarian consumers

Dairy cultures, probiotics, dairy biologics, enzymes and coloring materials for food

processing

Fermentation derived foods and industrial products alcohol, citric acid, lysine, flavor

preparations, etc.

Biopreservative ingredients based on dairy fermentation, viz., Nisin, pediococcin,

acidophilin, bulgarican contained in dairy powders.

Dairy/food processing equipment:

Potential exists for manufacturing and marketing of cost competitive food processing machinery

of world-class quality.

Food packaging equipment:

Opportunities lie in the manufacturing of both machinery and packaging materials that help

develop brand loyalty and a clear edge in the marketing of dairy foods.

Distribution channels:

For refrigerated and frozen food distribution, a world class cold chain would help in providing

quality assurance to the consumers around the region.


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Retailing:

There is scope for standardizing and upgrading food retailing in major metropolitan cities to

meet the shopping needs of a vast middle class. This area includes grocery stores of European

and North American quality, warehousing and distribution.

Product development:

Dairy foods can be manufactured and packaged for export to countries where Indian food

enjoys basic acceptance. The manufacturing may be carried out in contract plants in

India. An option to market the products in collaboration with local establishments or

entrepreneurs can also be explored. Products exhibiting potential include typical

indigenous dairy foods either not available in foreign countries or products whose

authenticity may be questionable. Gulabjamuns, Burfi, Peda, Rasagollas, and a host of

other Indian sweets have good business prospects.

Products typically foreign to India but indigenous to other countries could also be

developed for export. Such products can be manufactured in retail package sizes and

could be produced from milk of sheep, goats and camel. Certain products are

characteristically produced from milk of a particular species. For example, Feta cheese is

used in significant tonnage, in Iran. Sheep milk is traditionally used for authentic Fetacheese. Accordingly, India's goat and sheep herds can be utilized for the manufacture of

such authentic products.

Ingredient manufacture:

Export markets for commodities like dry milk, condensed milk, ghee and certain cheese

varieties are well established. These items are utilized as ingredients in foreign countries. These

markets can be expanded to include value-added ingredients like aseptically packaged cheese

sauce and dehydrated cheese powders.

Cheese sauce: Canned cheese sauce is made from real cheese to which milk, whey,

modified food starch, vegetable oil, colorings and spices may be added. Cheese sauce is

useful in kitchens for the preparation of omelet, sandwiches, entrees, and soups. In


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addition, cheese sauce is used as a topping on potatoes and vegetables and may be

incorporated in pasta dishes.

Cheese powders: Cheese powders are formulated for dusting or smearing of popular

snacks like potato chips, crackers, etc. They impart flavor and may be blended with

spices.

With the globalization of food items, an opportunity should open up for food service and

institutional markets.

Technology-driven manufacturing units:

These plants would fulfil an essential need by providing a centralized and specialized

facility for hire by the units which cannot justify capital investment but do need such services.

Potential areas for state-of-the-art contract-pack units may conceivably specialize in cheese

slicing, or dicing line, cheese packaging, butter printing, and aseptic packaged fluid products.

Training centers for continuing education:

NRIs could set up technology transfer and updating centers for conducting seminars and

workshops - catering to the needs of workers at all levels of the dairy industry. Here technical,

marketing and management topics can be offered to ensure that the manpower continues to

acquire the latest know-how of their respective fields.

The entrepreneurs need powerful tools to implement their plans. Appropriate investment and

involvement by NRIs can serve as a catalyst for India's dairy food industry leading to exploration

of business potential in domestic and export trade. Risk factors must be identified and managed

by in-depth study of chosen areas so that chances of rewards are maximized under the current

liberalization climate.


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Indian (traditional) Milk Products

There are a large variety of traditional Indian milk products such as

Makkhan - unsalted butter.Ghee - butter oil prepared by heat clarification, for longer shelf life.

Kheer - a sweet mix of boiled milk, sugar and rice.

Basundi - milk and sugar boiled down till it thickens.

Rabri - sweetened cream.

Dahi - a type of curd.

Lassi - curd mixed with water and sugar/ salt.

Channa/Paneer - milk mixed with lactic acid to coagulate.

Khoa - evaporated milk, used as a base to produce sweet meats.

The market for indigenous based milk food products is difficult to estimate as most of

these products are manufactured at home or in small cottage industries catering to local

areas.

Consumers while purchasing dairy products look for freshness, quality, taste and texture,

variety and convenience. Products like Dahi and sweets like Kheer, Basundi, Rabri areperishable products with a shelf life of less than a day. These products are therefore

manufactured and sold by local milk and sweet shops. There are several such small shops within

the vicinity of residential areas. Consumer loyalty is built by consistent quality, taste and

freshness. There are several sweetmeat shops, which have built a strong brand franchise, and

have several branches located in various parts of a city.

Branding Of Traditional Milk Products

Among the traditional milk products, ghee is the only product, which is currently

marketed, in branded form. main ghee brands are Sagar, MilkMan (Britannia), Amul (GCMMF),

Aarey (Mafco Ltd), Vijaya (AP Dairy Development Cooperative Federation), Verka ( Punjab

Dairy Cooperative), Everyday (Nestle) and Farm Fresh (Wockhardt).


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With increasing urbanization and changing consumer preferences, there is possibility of

large scale manufacture of indigenous milk products also. The equipments in milk manufacturing

have versatility and can be adapted for several products. For instance, equipments used to

manufacture yogurt also can be adapted for large scale production of Indian curd products (dahi

and lassi). Significant research work has been done on dairy equipments under the aegis of

NDDB.

Mafco Limited sells Lassi under the Aarey brand and flavoured milk under the Energee

franchise (in the Western region, mainly in Mumbai). Britannia has launched flavored milk in

various flavors in tetra packs.

GCMMF has also made a beginning in branding of other traditional milk products with

the launch of packaged Paneer under the Amul brand. It has also created a new umbrella brand

"Amul Mithaee", for a range of ethnic Indian sweets that are proposed to be launched The first

new product Amul Mithaee Gulabjamun has already been launched in major Indian markets.

Western Milk Products

Western milk products such as butter, cheese, yogurt have gained popularity in the Indian

market only during the last few years. However consumption has been expanding with increasing

urbanization.

Butter

Most Indians prefer to use home made white butter (makkhan) for reasons of taste and

affordability. Most of the branded butter is sold in the towns and cities. The major brands are

Amul, Vijaya, Sagar, Nandini and Aarey. Amul is the leading national brand while the other

players have greater shares in their local markets. The latest entrant in the butter market has been

Britannia. Britannia has the advantages of a wide distribution reach and a strong brand recall.

Priced at par with the Amul brand, it is expected to give stiff competition to the existing players.

In 1999-00 the butter production is estimated at 4 lakh MT of this only 45K MT is in the white

form used for table purposes rest all is in the yellow form.


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Cheese

The present market for cheese in India is estimated at about 9,000 tonnes and is growing

at the rate of about 15% per annum. Cheese is mainly consumed in the urban areas. The four

metro cities alone account for more than 50% of consumption . Mumbai is the largest market

(accounting for 30% of cheese sold in the country), followed by Delhi (20%). Calcutta (7%) and

Chennai (6%). Mumbai has a larger number of domestic consumers, compared to Delhi where

the bulk institutional segment (mainly hotels) is larger.

The major players are Amul, Britannia, and Dabon International dominating the market.

Other major brands were Vijaya, Verka and Nandini (all brands of various regional dairy

cooperatives) and Vadilal. The heavy advertising and promotions being undertaken by these new

entrants is expected to lead to strong 20% growth in the segment. Amul has also become more

aggressive with launch of new variants such as Mozzarella cheese (used in Pizza), cheese

powder, etc.

The entry of new players and increased marketing activity is expected to expand the market. All

the major players are expanding their capacities

Milk Powder

Milk powder are mainly of 2 types

Whole milk powder

Skimmed milk powder

Whole milk powder contains fat, as distinguished from skimmed milk powder, which is

produced by removing fat from milk solids. Skimmed milk powder is preferred by diet conscious

consumers. Dairy whiteners contain more fat than skimmed milk powder but less compared to

whole milk powder. Dairy whiteners are popular milk substitute for making tea, coffee etc. The

penetration of these products in milk abundant regions is driven by convenience and non

perishable nature (longer shelf life) of the product.


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Dairy sector of advanced nations export milk products with a subsidy of $ 1000 per tonne

with a level of subsidy more than 60 % of the price of milk powder produced in India, this has

led to large scale imports of milk powder both in whole and skimmed form. To protect the

domestic sector from these subsidized imports the central government has recently increased the

basic import duty on all imports of milk powder more than 10000 MT to 60% from 15%. For

imports less than 10000 MT the basic customs duty has been left unchanged at 15%.

In 1999-00 India is estimated to have imported about 18,000 tonnes of milk powder

against a total estimated production of 2.40 Lakh MTs. In 2000-01 India is expected to export

10000 MT of skimmed milk powder due to rise in international prices to $2300 per MT from last

year's levels of $1400 per MT. These expectations are based on the strong demand from Russia,

East Asia and Latin America, and also on tightening of supply in EU, which accounts for 75% ofthe annual global Skimmed Milk Powder exports.

Major Players

Milk Powder/Dairy Whiteners : Major skimmed milk brands are Sagar (GCMMF) and

Nandini (Karnataka Milk Federation), Amul Full Cream milk powder is a whole milk powder

brand.

Leading brands in the dairy whitener segment are Nestle's Everyday, GCMMF's Amulya,

Dalmia Industry's Sapan, Kwality Dairy India's KreamKountry, Wockhardt's Farm Fresh and

Britannia's MilkMan Dairy Whitener.

Condensed Milk

The condensed milk market has grown from 9000 MT in 1998 to 11000 MT in 1999.

Condensed milk is a popular ingredient used in home-made sweets and cakes. Nestle's Milkmaid

is the leading brand with more than 55% market share. The only other competitor is GCMMF's

Amul.


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Value addition in milk powder - Infant Foods

Nestle is the market leader in the segment. This is a category where brand loyalties are

very strong as mothers want the best for their babies. Heinz is the only other significant

competitor to Nestle in this segment. Nestle's Cerelac and Nestum together have around 80%

market share and Heinz's Farex has close to 18% share. Wockhardt is a relatively new entrant

with its First Food brand. Wockhardt also proposes to launch a new baby food Easum containing

moong (moong is one of the easily digestible pulses). The Easum brand will directly compete

with Nestle's Nestum (made from rice).

In infant formula also Nestle's Lactogen formula and Lactogen standard formula are the

leading brands with around 75% market share. Other brands are Heinz's Lactodex Farex,

Wockhardt's Raptakos, and Amul's Amulspray

Regulatory Framework

The dairy industry was de-licensed in 1991 with a view to encourage private investment

and flow of capital and new technology in the segment. Although de-licensing attracted a large

number of players, concerns on issues like excess capacity, sale of contaminated/ substandard

quality of milk etc induced the Government to promulgate the MMPO (Milk and Milk Products

Order) in 1992. Milk and Milk Products Order (MMPO) regulates milk and milk products

production in the country. The order requires no permission for units handling less than 10,000

litres of liquid milk per day or milk solids up to 500 tpa. MMPO prescribes State registration to

plants producing between 10,000 to 75,000 litres of milk per day or manufacturing milk products

containing between 500 to 3,750 tonnes of milk solids per year. Plants producing over 75,000

litres per day or more than 3,750 tonnes per year of milk solids have to be registered with the

Central Government. The stringent regulations, government controls and licensing requirements

for new capacities have restricted large Indian and MNC players from making significant

investments in this product category. Most of the private sector players have restricted

themselves to manufacture of value added milk products like baby food, dairy whiteners,

condensed milk etc.


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All the milk products except malted foods are covered in the category of industries for

which foreign equity participation up to 51% is automatically allowed. Ice cream, which was

earlier reserved for manufacturing in the small-scale sector, has now been de-reserved. As such,

no license is required for setting up of large-scale production facilities for manufacture of ice

cream.

1.2 COMPANY PROFILE:

Nandha Dairies Private Limited

Nandha Dairies private limited, was registered on 05-04-1995, by Mr. Sarasa Gopalan, its

sole proprietor and started to operate as a milk collection centre, but later on the facility was

developed into a milk pasteurizing and packing facility, in 2004. Milk collecting and distributing

facility was set up at around a 1.2 acre.

After a period of 5 years the office of the company shifted to rented building in the main

bazaar. The activities of the company were expanded and resulted in the increase of sale and its

net worth simultaneously. In 2003, the company introduced a new scheme for the supply of

cattle feeds to the members. This was done in order obtained uninterrupted supply of cattle feed

at fair price and to get assured yield of quality milk.

In the preceding years the company opened coffee bars at different places in Salem. This

was done so in order to make use of surplus milk of the company. The company also prepared

and sold Ghee and Milk-Khoa. In 2003-05 the company introduced a loan scheme with an

objective of increasing the milk production. Under this scheme, the company offered loans from

its own funds to the members for the purchase of milch animals and arranged for the recovery of

the amount from recovery made to the members for the milk supplied by them to the company as

a result there was a considerable increase in the number of members. Similarly there was a

significant increase in the volume sales of milk. This scheme contributed till 2009 and during the

entire period of the company expanded its area of operation.

Simultaneously with the introduction of loan scheme the company arranged to establish

chilling plant of the capacity of 2000 liters of milk in order to process and distribute it

subsequently. The plant started its operation in August 2004.


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Milk yards were established to collect large quantities of milk at different places in and

around Salem. The employees on bicycles brought the milk, which was collected from different

yards to the chilling plant initially, but later on a van was bought to carry out the same task. Later

funds were raised from some other investors and in 2004, the company constructed its own

building in Salem - Kovilpathu, a place 1 Kilometers away from the Salem town and the chilling

plant was shifted to new building.

A new chilling plant of the capacity of 4000 liters was also set up in the new building in

the same year. In 1983, the company installed 2 new chilling plants of the capacity of 2000 liters,

1000 liters respectively. In 2006 the company purchased a new can-cooler of the capacity of 640

liters and a new packing machine to fill the capacity of 250ml, 500ml, 1 liters milk pouches was

also set up in the same building. In 20066 July an Ice cream parlour was set up nearer to Salem

Ammaiar Koil and on 28m sep. 2008 another parlor started nearer to Taluk-office.

Area of Operation:

1. Aatayampatti

2. Salem

3. Kunnathur

4. Neravy

5. Omalur

6. Nedungadu.

Administration:

After the incorporation of the company, its proprietor Mr.Sarasagopalan directs the whole

operations of the company and under his command, marketing team is headed by

Mr.Rajagopalan and Sourcing milk and transportation is taken care by supervisor

Mr.Balamurugan

Financial matters are taken care by accountants team headed by Mrs.Sakunthala


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The Nandha Dairies is handling an average of 20,000 liters of milk per day during the

flush period and also average of 15,000 liters of milk per day during lean season. If any surplus

of milk in Nandha Dairies, it will be sold to PONLAIT.

Name : Nandha Dairies private Limited

No. of Collection Units : 6 units

Office Working Hours : 9 AM to l PM & 2 PM to 6 PM

Chilling Centre:

24 hours with shift system collection, processing (chilling) storing anddistribution are

done here.

1. 4 am - 12 am ( First Shift )

2. 12 noon - 8pm ( Second Shift )

3. 8 pm - 4 am ( Third Shift )

By-Products:

Ghee

Khoa

Flavored milk

Ice cream

Paneer

Curd

Butter

Competitors:

Hatsun


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Amul

Natchy milk

KVS Milk Society

Method of Distribution:

diadiary

The society disposes the milk through the milk vendors. The demand for the milk is not

only in the Salem town but also from its neighboring villages. Besides the milk is distributed to

the customers in the village yard at the time of collection of milk.

Type of Milk:

The Nandha Dairies is producing the three types of milk

Toned milk

Fat - 3%

SNF - 8.5%

Standard milk

Fat - 3%

SNF - 8.5%

Cow milk

Fat - 3%

SNF - 8.5%

Activities of the Company:

1. Procuring milk from farmers.

2. Marketing milk to consumers in packet after standardization and pasteurization at a lesser rate.

3. Supply milk on credit to government departments and government undertaking in Salem as an

agent of government.


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4. Purchase of cattle feeds from PONLAIT and supplied to the farmers with government subsidy.

5. Selling milk and by-products through ice-cream parlor and milk parlor.

6. Procure of raw milk from adjacent areas of Tamil Nadu.

7. Newly establishment of two 24 hours parlor with maximum margin.

Cost of the Plant : Rs. 140 lakhs

a) Civil work : Rs. 45,62,966

b) Machineries : Rs. 90,41,221

c) Other furniture : Rs. 2,85,743

Capacity of the plant : 10,000 to 20,000 LTD

Milk Procurement per day

a) Farmers : 9300 liters

b) Kollumankudi : 2300 liters

c) Poonthottam : 1800 liters

Purchase Rate of Milk

a) Farmers [FAT/SNF] 12.5% : Rs. 14.50

b) Kollumankudi : Rs. 13.00

c) Poonthottam : Rs. 13.00

Total sales per day

a) Union sales : 8,500 liters

b) By farmers : 8,100 liters

d) Govt. institution sales: 650 liters


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Existing Packing unit Capacity: 4,500 packet per hour

Newly purchased packing unit:

1. Capacity : 3,600 packets per hour.

2. Value : Rs. 6, 06,000.

By product(average sales per month) : Quantity Value

a) Ghee : 650 1,36,192

b) Pakoda : 195 28,967

c) Ice cream : 1 29,818

+Rose milk + Curd

d) Hot Milk / Coffee : 79,342

Competitive Strength of the Company:

Nandha Dairies is ability to collect 20,000 liters of milk per day from farmers in the

surrounding villages and ability to distribute all over salem. No other competitors in

salem has such a sustainable procurement network.

Managing this supply chain of Nandha Dairies which begin from milk producer and ends

with supply to customer from vendors and retailer is very critical job. It requires lot of

dedication and hard work from all members of the cooperative and also the distributors

and retailers.

Future Plans If Any:

Target to achieve the sale of 20,000 liter milk per day in 3 years.

Going to launch humagine process in milk.

Going to introduce their COLAIT brand in tamil nadu area by agents.

Description of Various Functional Areas:

The various functional areas are operations, human resources, marketing and finance. In

this, operation deals with those processes including material planning, logistics, MRP


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processing, value target, buyer monitor and forecasting the demand along with the PPM

(production planning meeting). The human resources are responsible for the performance review

and the promotions are offered after 3 to 4 years.

Current Achievement:

Introduce the new milk product (cow milk) and successful in it.

Increase the milk sales of 3,000 liters in during the period of 2011 2013.

Employees Details

Superintendent Supervisor Clerk Helper Field Assistant Total

Administration 1 2 4 3 - 10

Accounts 1 1 4 3 - 9

Sourcing 1 1 12 3 10 40

Marketing 1 2 - 13 12 29

Dairy 2 2 2 1 12 30

Milk Collection in Nandha Dairies


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Farmers to Collecting Point:

Farmers collect the milk from the cow in the early morning and handover to the

collection point by their own vehicles. In the collection point the field assistants collect the milk

from farmers in the canes and noted in the register books provided by the cooperative.

Collection Point to Co-operatives:

There are 25 collection points in the cooperatives. After the milk is collected in the

canes by the cooperative members loaded it in the vehicle from the cooperative. Each vehicle

collect the milk from collection point for their allotted routes. The vehicle collects all the milk

and return to the cooperative by correct time.

Vehicles:

TATA EICHER - 1

TATA ACE - 2

TATA 407 - 2

Collection Method in Collection Point:

In the collection point the milk is collected by automatic milk collection system.

Automatic milk collection system:

Automatic milk collection system to reduce the time taken to ascertain the quality and the

fat content of milk which in turn helps in overcoming all associated problems of the traditional

method of testing such as storage of samples and handling of corrosive chemicals.

The system consists of three pieces of equipment they are

The Electronic Milk Tester (EMT)

The Milk Weighing System (MWS) and

The Data Processor (DP).


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Process of the System:

The EMT and the MWS are interfaced with the Data Processor (DP). This system needs

only three operators. Under this system each farmer is given a plastic card with a code number as

his or her identification. The DP reads the identification on the card and the farmer pours his

milk into a steel trough over a weigh-bridge. The weight of the milk gets displayed to the farmer

and instantaneously gets transferred to the DP in liters. One man is required to fill the cans after

the milk has been weighed, while the second operator takes a 5ml. sample of the milk and holds

it up to a tube of a fat testing machine.

The hand lever of a machine is then moved thrice and the fat content of the milk sample

is displayed on the monitor and also transferred to the DP. A small printer attached to the DP

gives a slip that reads the farmers name, quantity of milk, percentage of fat and the amount of

the payment to be made. The calculations of the payment are made on the basis of a rate chart as

the price of the milk depends on its fat content. With this slip the farmer can collect his or her

money from an adjoining window. The payment is rounded to the closest rupee value and the

balance is credited to his account the next day.

The entire process takes about 20 seconds. The DP has the added advantage of storing the

transaction of milk collection of all farmers of the shift. At the end of the shift the machine prints

out the individual transactions along with the grand totals.

Other functions made possible by this system are:

Entry of year, date, cow/buffalo milk fat rate, shift and membership number into the DP

at initialization

Erasing and rectifying any incorrect data that may have been fed in inadvertently;

Independent displays of the weight and fat content by the MWS and the EMT on

individual display ports

Storage of weight and fat content figures in the memory of the DP and immediate

printout of all the necessary details to each farmer

A memory capacity to hold the data for up to 1,000 farmers

Data can be sent online to a PC via RS232C serial communication at the end of a shift.


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The automatic milk collection system facilitates speedy collection of milk, an efficient

and accurate measurement of fat content and quick payment to the farmer. The PC-based system

not only enhances the speed of services at each cooperative, but also increases the efficiency and

reliability of overall operations. Among other things, it

Stores individual milk collection details on a suitable storage device for yearly analysis;

Facilitates the complete financial accounting of the cooperative society;

Maintains records of cattle feed, ghee1 and other local milk sale of the society.

Monitors the animal breeding, health and nutrition programmes and Maintains records

of the members, for instance, details of their land holdings and animals.

Implementation Benefits of the Automatic Milk Collection Station:

Farmers were the main beneficiaries of this project. Figure 4.2 shows farmers queuing up

at the AMCs. The main benefits of the automatic milk collection systems as compared to the

conventional methods are as follows:

Immediate payment for the milk delivered;

Accurate information about the fat content, quantity of milk and the payment due to the

farmer is displayed;

Accuracy in weighing the milk on the MWS as against the manual process where milk

was weighed using measuring containers which very often led to a financial loss to

farmers

Immediate testing of the quality of milk as against testing after 2 to 3 hours of

collection;

The card reader unit ensures speed of operation and an error-free entry of identification

number of the farmer

The elimination of manual registers for all kinds of information and data storage.


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CHAPTER 2

OBJECTIVE & SCOPE OF THE STUDY


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2. OBJECTIVES & SCOPE OF THE STUDY

2.1 OBJECTIVE OF STUDY:

The objective of this study is to assign the vehicle for the appropriate routes which wouldbe better to operate the logistics network in efficient manner.

To analysis the waiting time of the each vendor to deliver the milk in co-operative.

2.2 SCOPE OF THE STUDY:

Currently Nandha Dairies is operating all the vehicle is unorganized (The vehicle are

assigned is their route in randomly). The project paves a way for a organized - efficient

effective vehicle routing for better operation.

Only one collection counter is available in Nandha Dairies. So there is more waiting time

exist for each and every vendors arriving for the delivery. By this project number of servers can

be suggested for better collection without waiting time.

2.3 LIMITATIONS:

The study is restricted to Nandha Dairies alone

The study is only for a short period of one and half month.

The result of the study cannot be generalized to other units.

2.4 LITERATURE REVIEW:

The CMAP often arises as a sub problem of difficult combinatorial programming

problems. For example, generalized assignment problem (GAP), which is NP-complete,

can be solved by the repeated application of the Hungarian method (1).

The cost minimizing assignment problem (CMAP) has been extensively considered in the

literature and several polynomial algorithms(2). It developed a branch and bound algorithm for producing exact solutions as well as a

heuristic procedure for producing an approximate solution to APSC.(3).

The design of Taint Bochs, its policy for propagating taint information and the rationale

behind it, its support for introducing and logging taints, and our analysis framework(4).


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CHAPTER 3

PROJECT OVERVIEW


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3. PROJECT OVERVIEW

The project deals with the assign the vehicle for the appropriate routes for using the

cost and time analysis and to analysis the waiting time of vendors by simulation problem.

3.1 The Assignment Algorithm:

The Assignment Problem is another special case of LPP. It occurs when n jobs are to be

assigned to n facilities on a one-to-one basis with a view to optimizing the resource required.

3.1.1 Steps for Solving the Assignment Problem:

Assignment problem can be solved by applying the following steps:

Step 1: Subtract the minimum element of each row from all the elements in that row. From each

column of the matrix so obtained, subtract its minimum element. The resulting matrix is the

starting matrix for the following procedure.

Step 2: Draw the minimum number of horizontal and vertical lines that cover all the zeros. If this

number of lines is n, order of the matrix, optimal assignment can be made by skipping steps 3

and 4 and proceeding with step 5. If, however, this number is less than n, go to the next step.

Step 3: Here, we try to increase the number of zeros in the matrix. We select the smallest

element out of these which do not lie on any line. Subtract this element from all such

(uncovered) elements and add it to the elements which are placed at the intersections of the

horizontal and vertical lines. Do not alter the elements through which only one line passes.

Step 4: Repeat steps 1, 2 and 3 until we get the minimum number of lines equal to n.

Step 5: (A) Starting with first row, examine all rows of matrix in step 2 or 4 in turn until a row

containing exactly one zero is found. Surround this zero by, indication of an assignment there.

Draw a vertical line through the column containing this zero. This eliminates any confusion of

making any further assignments in that column. Process all the rows in this way.

(B) Apply the same treatment to columns also. Starting with the first column, examine all


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columns until a column containing exactly one zero is found. Mark and draw a horizontal line

through the row containing this marked zero. Repeat steps 5A and B, until one of the following

situations arises:

(i) No unmarked ( ) or uncovered (by a line) zero is left,

(ii) There may be more than one unmarked zero in one column or row. In this case,

put around one of the unmarked zero arbitrarily and pass 2 lines in the cells of the

remaining zeros in its row and column. Repeat the process until no unmarked zero

is left in the matrix.

Unbalanced Assignment Problems

Like the unbalanced transportation problems there could arise unbalanced

assignment problems too. They are to be handled exactly in the same manner i.e., by

introducing dummy job for dummy men.

The assignment problem is used for the vehicle assignment for the collection network.


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CHAPTER 4

RESEARCH METHODOLOGY


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4. RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. Thus when we talk of the

research methodology, we also talk about the research methods, the logic behind it and also thenecessity of the various techniques used in the research.

4.1 METHOD OF DATA COLLECTION:

Data collection consists of identification of sources of data and the use of instrument and

sampling to acquire data. There are two sources of data : primary data refers to information

obtained firsthand by the researcher on the variable of interest for the specific purpose of the

study. Secondary data refers to information gathered from the previous records.

4.2 TYPES OF DATA:

4.2.1 PRIMARY DATA:

Primary data are information collected or generated by the researcher for the purpose of

the project immediately at hand. The researcher have collected the primary data during the

course of project regarding the schedule receiving time, the collection process, the description of

the various errors and the process at the validation point. This process was observed for onemonth and the data was collected through this observation.

4.2.2 SECONDARY DATA

It refers to the information that has been collected from the previous records of the

company. The researcher has collected the information though the computer search of databases.

The data like history of the process, schedule and collection details from past records, the

number of errors are got as secondary data in this paper. Secondary data analysis saves time that

would otherwise be spent collecting data and particularly in the case of quantitative data,

provides larger and higher quality databases than would be unfeasible for any individual

researcher to collect on their own. In addition to that, analysts of social and economic change

consider secondary data essential, since it is impossible to conduct a new survey that can

adequately capture past change and / or developments.


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4.3 COLLECTION ROUTES OF MILK:

There are routes to collect the milk in Nandha Dairies.

Route 1:

In route 1 there are 4 collection points

Poovam

Varichakudy

Aatayampatti

Thalatheru

Total number of kilometers = 25 km

Route 2:

In route 2 there are 5 collection points

Nedungadu

Nallathur

Ponpathy

Melakasakudy

Kollumangudy


Route 3:

In Route 3 there are 5 collection points

Dharmapuram

Patanam

Neravy

Oozhiyapathu

Vizhilithiyur



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Route 4:

In Route 4 there are 5 collection points

Omalur

Surakudy

Abiramam

KK mankalam

Sellur


Route 5:

In Route 5 there are 4 collection point

Sethur

Nallazunthur

Ambakarathur

Poonthotam


Vehicles used:

There are 5 no of vehicles are used

Tata Eicher = 1

7 km per ltr and 55 km per hr

Tata ace = 2

14 km per ltr and 40 km per hr

Tata 407 = 2

8 km pe ltr and 45 km per hr


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CHAPTER 5

DATA ANALYSIS & INTERPRETATIONS


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5. DATA ANALYSIS AND INTERPRETATIONS

Tools Used : Microsoft EXCEL

Graphical Representation : Bar Chart

5.1 ASSIGNMENT PROBLEM WITH COST

In this case the assignment problem is calculated by the cost. The cost is calculated by

Total no of kilometer

Cost = -------------------------------- x diesel price (Rs 50)

No of kilometer per liter

For each vehicle the costs are calculated according to the above calculation. And all the costs

are calculated by the same method

Step 1

Subtract the minimum element of each row with the other elements in the row and so all

the B & C column become zero.

VEHICLE

R

O

U

T

E

A B C D E

1 89 0 0 67 67

2 143 0 0 108 108

3 136 0 0 102 102

4 107 0 0 80 80

5 89 0 0 67 67


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Step 2

From the result of step 1 to subtract the minimum element of each column with the other

elements in the column and we got maximum zeros.

Step 3

Then we assign first zero for A1 and other zeros in the 1strows and 1

stcolumns get

crossed. And we follow the same process for the all the column to assign the zero.

VEHICLE

R

O

U

T

E

A B C D E

1 0 0X 0X 0X 0X

2 54 0 0X 41 41

3 47 0X 0 35 35

4 18 0X 0 13 13

5 0X 0X 0X 0 0X

Step 4

Now we assign zeros for all column except the 5th

column. So we take minimum element

in the box and subtract all elements in the box then we get zero in the 5th

column.

VEHICLE

R

O

U

T

E

A B C D E

1 0 0X 0X 0X 0X

2 41 0 0X 28 28

3 34 0X 0 22 22

4 5 0X 0X 0X 0

5 0X 0X 0X 0 0X


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INFERENCE:

From the above calculation all the vehicles are assign for their appropriate route by the economic

cost and the vehicles route and their costs are given below.

5.2 ASSIGNMENT PROBLEM WITH TIME

In this case the assignment problem is calculated by the time. The time is calculated by

Total no of km

Time = ------------------------------------ x 60 min

No of km per hr

For each vehicle the times are calculated according to the above calculation. And all the

times are calculated by the same method.

Step 1

Subtract the minimum element of each row with the other elements in the row and so all

the A column become zero.

VEHICLE COST

A vehicle for 1stroute 178

B vehicle for 2n

route 142

C vehicle for 3r

route 135

D vehicle for 5t route 156

E vehicle for 4t

route 187


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Step 2

From the result of step 1 to subtract the minimum element of each column with the other

elements in the column and we got maximum zeros

VEHICLE

R

O

U

T

E

A B C D E

1 27 38 38 34 34

2 44 60 60 53 53

3 41 57 57 51 51

4 33 45 45 40 40

5 31 42 42 37 37

VEHICLE

R

O

U

T

E

A B C D E

1 0 11 11 7 7

2 0 16 16 9 9

3 0 16 16 10 10

4 0 12 12 7 7

5 0 11 11 6 6


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Step 3

Then we assign first zero for D5 and other zeros in the 5th rows and get crossed. And we

follow the same process for the all the column to assign the zero.

VEHICLE

R

O

U

T

E

A B C D E

1 0X 0X 0 1 1

2 0x 5 5 3 3

3 0 5 5 4 4

4 0X 1 1 1 1

5 0X 0X 0X 0 0X

Step 4

Now we assign zeros for all columns except the 5th

column. So we take minimum element in the

box and subtract all elements in the other box then we get zero in the 5th

column.

VEHICLE

R

O

U

TE

A B C D E

1 0X 0X 0 0x 0x

2 0x 4 4 2 2

3 0 4 4 3 3

4 0X 0 0X 0X 0X

5 0X 0X 0X 0 0X


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Step 5

Now we assign zeros for all columns.

VEHICLE

R

O

U

T

E

A B C D E

1 0X 0X 0 0x 0x

2 0x 2 2 0X 0

3 0 2 2 1 1

4 0X 0 0X 0X 0X

5 0X 0X 0X 0 0X

INFERENCE:

From the above calculation all the vehicles are assign for their appropriate route by the economic

time.

The assign routes and their time are given below:

VEHICLE TIME

A vehicle for 3r route 41 min

B vehicle for 4t

route 45 min

C vehicle for 1stroute 38 min

D vehicle for 5t

route 37 min

E vehicle for 2n route 53 min


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Simulation for waiting time of vendors:

VENDOR RN IAT AT RN ST SST SET WT

1 0.33 7.32 0 0.69 9.38 0 9.38 0

2 0.65 8.6 7.32 0.89 9.78 9.38 19.16 2.06

3 0.99 9.96 15.92 0.57 9.14 19.16 28.3 3.24

4 0.93 9.72 25.64 0.3 8.6 28.3 36.9 2.66

5 0.54 8.16 35.36 0.1 8.2 36.9 45.1 1.54

6 0.63 8.52 43.52 0.35 8.7 45.1 54.8 1.58

7 0.7 8.8 52.04 0.17 8.34 54.8 62.14 2.76

8 0.25 7 60.84 0.04 8.08 62.14 70.22 1.3

9 0.94 11.76 67.84 0 8 70.22 78.22 2.38

10 0.7 8.8 79.6 0.08 8.16 78.22 86.32 0

11 0.16 6.6 86.2 0.04 8.08 86.32 94.46 0.12

12 0.76 9.04 92.8 0.97 9.94 94.46 104.4 1.66

13 0.64 8.56 101.84 0.33 8.66 104.4 113.06 2.56

14 0.72 8.88 110.4 0.76 9.52 113.06 122.58 2.66

15 0.72 8.88 119.28 0.53 9.06 122.58 131.64 3.3

TOTAL 27.82

Total Waiting Time 27.82

Avg. Waiting Time = ___________________ = _____ = 1.85

No. of Vendors 15

Inference:

Table shows that the waiting time of vendors in one server and the average waiting time

is 1.85 of 15 vendors.


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Waiting Time Of Vendors:

Inference:

Here the bar graph shows that the waiting time of vendors is increases and decreases

according to the arrival time of vendors.


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GPSS Report for Waiting Time with One Server:

GPSS World Simulation Report -

Untitled Model 1.1.1

Thursday, April 25, 2013 16:12:23

NAME VALUE

QONE 10000.000

LABEL LOC BLOCK TYPE ENTRY COUNT CURRENT COUNT

1 GENERATE 17 0 0

2 QUEUE 17 1 0

3 SEIZE 16 1 0

4 DEPART 15 0 0

5 ADVANCE 15 0 0

6 RELEASE 15 0 0

7 TERMINATE 15 0 0

FACILITY ENTRIES UTILITY AVETIME

AVAILOWNER PEND INTER RETRY DELAY

QONE 16 0.956 8.506 1 16 0 0 0 1

START TIME END TIME BLOCKS FACILITIES STORAGES

0.000 145.468 7 1 0


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ENTRIES UTIL AVETIME

AVAILOWNER PEND INTER RETRY DELAY

16 0.936 8.506 1 16 0 0 0 1

. ..

QUEUE MAX CONT. ENTRY ENTRY(0) AVE. CONT. AVE. TIME AVE.(0) RETRY

QONE 2 2 17 0.785 6.715 7.134 0

CEC XN PRI M1ASSEM

CURRENT

NEXT

PARAMETERVALUE

16 0 129.104 16 3 4

FEC XN PRI BDTASSEM

CURRENT

NEXT

PARAMETERVALUE

18 0 147.308 18 0 1

INFERENCE:

In this GPSS report shows the waiting time of vendors in the collection point with one server.


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Simulation problem with two servers:

INFERENCE:

There is no waiting time in the collection point and 6 out of 15 vendors used the second server.

SERVER 1 SERVER 2

VENDOR RN IAT AT RN ST SER SST SET SST SET

1 0.33 7.32 0 0.69 9.38 1 0 9.38

2 0.65 8.6 7.32 0.89 9.78 2 0 9.78

3 0.99 9.96 15.92 0.57 9.14 1 15.92 25.06

4 0.93 9.72 25.64 0.3 8.6 1 25.64 34.24

5 0.54 8.16 35.36 0.1 8.2 1 35.36 43.56

6 0.63 8.52 43.52 0.35 8.7 2 43.52 52.22

7 0.7 8.8 52.04 0.17 8.34 1 52.04 60.38

8 0.25 7 60.84 0.04 8.08 1 60.84 68.92

9 0.94 11.76 67.84 0 8 2 67.84 74.84

10 0.7 8.8 79.6 0.08 8.16 1 79.6 87.76

11 0.16 6.6 86.2 0.04 8.08 2 86.2 94.28

12 0.76 9.04 92.8 0.97 9.94 1 92.8 102.74

13 0.64 8.56 101.84 0.33 8.66 2 101.84 110.5

14 0.72 8.88 110.4 0.76 9.52 1 110.4 119.92

15 0.72 8.88 119.28 0.53 9.06 2 119.28 128.34


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CHAPTER 6

CONCLUSIONS


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6.1 FINDINGS:

The waiting time is increases with the no of vendors arrival.

The average waiting time of each vendor is nearly 15 min during the collection of milk.

If one more collection staff is added there is no waiting time of vendors during the

collection time.

The automatic collection system is reduces the waiting time when compare to the

traditional collection system.

Now Nandha Dairies assign the collection route as randomly.

In assignment problem the routes are differ in cost and time analysis.

6.2 SUGGESTIONS

The number of collection staff should be increase to reduce the waiting time of the

vendor during the milk collection.

Nandha Dairies should follow the cost based rout assignment.

Nandha Dairies should find some other alternate way for wastage of milks.

The humagine process should be increases for better production.

6.3 CONCLUSION :

As It is concluded that the vehicle assignment for collection network and reduction of

waiting time for the better collection in Nandha Dairies has given an idea and an overview

of how this process works and the analysis of the process helped to identify the problem

and recommend the respective suggestions in order to improve the efficiency of the

process.

The waiting time of vendor is a small problem but it must affect the future production of the

Dairy. So it should be rectifying as soon as possible.


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7. BIBLIOGRAPHY

1. C.R. Seshan, Some generalization of time minimizing assignment problem, Journal of

Operational Research Society 32 (1981) 489-494.

2.

K.G. Murty, An algorithm for ranking all the assignments in order of increasing cost,

Operations Research 16 (1968) 628~87.

3. Jungnickel, D. 2005. Graphs, Networks and Algorithms, volume 5 of Algorithms and

Computation in Mathematics. Springer, second edition.

4. M. Rosenblum, S. A. Herrod, E.Witchel, and A. Gupta. Complete computer system

simulation: The Sim OS approach. IEEE.

report on study on vehicle routing

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