Question Indian Government Is Distributing The Covidshield Vaccine To 5 Countries Across The Globe The Worldwide Total 1 (177.6 KiB) Viewed 24 times
Question Indian Government Is Distributing The Covidshield Vaccine To 5 Countries Across The Globe The Worldwide Total 2 (83.95 KiB) Viewed 24 times
Question: Indian Government is distributing the COVIDSHIELD vaccine to 5 countries across the globe. The worldwide total demand for the vaccine is 5.58 Million doses. This demand is to be supplied over the next 4 months. However, each country has its own demand as specified in Table-1 below. The cost per dose also varies for different countries. Table-1 also specifies the pricing strategy followed by India. With regard to production, the vaccine is made up of three key ingredients “A”, “B”, “C”. These ingredients are sourced from 5 suppliers "S1", "S2", "S3”, “S4” and “S5”. The cost per unit of an ingredient from the different suppliers, and their respective supply capacity in each month is provided in Table-2 below. The additional information provided in Table-2 are the ingredient that is supplied by a supplier and the cost of storing the ingredient obtained from a supplier in the factory's inventory. To make a single dose of the vaccine, 1 unit of A, 1.4 units of B and 1.25 units of C are to be mixed. The factory can at most feed 1.5 Million units of A, 2.8 Million units of B and 1.75 Million units of C into its mixers at any given month. The vaccine, once produced, can be stored in the factory's inventory by incurring a cost of Rs. 80 per dose per month. Once the shipment of a particular size departs from the factory for a particular country, that particular size of the demand for that country is assumed to be met (implying no lead-times are considered). The Indian Government is looking to satisfy all the demand as it occurs. Nevertheless, in case a demand is not satisfied, then a backorder cost that is 10% of the selling price of the dose is incurred. 1. Given this data, create an LP formulation to generate an aggregate plan that can be adopted to satisfy the demand, such that the profits are maximized. [3 Marks] 2. Solve the above-formulated LP (using a software of your choice), present the results in an appropriate report format (please use Tables) and give most important managerial interpretations from it. [3+2+2 = 7 Marks) 3. Submission time [5-Marks] (decreased by 0.5 marks based on when you submit relative to the other submissions). Minimum submission mark will be 0. a Note: When you give insights in Q2, give it from an operations perspective, such as: which resources are slacks, which are in surplus, which are the binding constraints and how modifications to them (from a sensitivity analysis perspective) would affect profits?
Table-1: Country Wise Data on Demand, and Selling Price of Vaccine Doses Country Brazil Mexico Bangladesh Sri Lanka Demand (Thousand Doses) in Month 1 2 3 4 300 400 400 450 450 480 480 500 150 180 220 230 220 220 110 110 180 150 Selling Price Per Does (in INR) 800 785 550 550 680 Japan 150 200 Supplier Table-2: Data on Different Ingredients Supply Attributes for the Vaccine Supply Capacity (Millions of units) Purchase Inventory Holding Ingredient in Month Price Per Cost 1 Supplied 2 3 4 Unit (in INR) (INR/ unit- month) 3.0 2.0 1.0 1.0 2.0 A 0.20 1.4 1.4 1.2 1.0 1.2 B 0.12 1.4 1.5 1.7 1.9 1.5 B 0.30 0.2 0.5 0.8 1.2 2.4 с 0.90 1.6 1.2 0.9 0.5 3.2 C 0.32 S1 S2 S3 S4 S5 MO rerit Gililold
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