PROJECT-GROUP 15

Group members

Nguy n Th Mai H ngễ ị ươ BABAIU11262Nguy n Th T ng Vi ễ ị ườ BABAIU11059Tr n H u V nh Giangầ ữ ị BABAIU11137

Võ Hoàng Thanh Th y ủ BABAUN11092Angelique Pattrick Yuson 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 Chi0 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-Sin0 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

Choosing best industrial zone

Area Power Price Labour Force Treatment

Am

ata

VN

- S

ingapore

Củ C

hi

Nhơn T

rạch

Am

ata

VN

- S

ing

apore

Củ C

hi

Nhơn T

rạch

Am

ata

VN

- S

ingapore

Củ C

hi

Nhơn T

rạch

Am

ata

VN

- S

ingapore

Củ C

hi

Nh

ơn T

rạch

AreaArea Amata Cu Chi Vn-Sin Nhon Trach

Amata 1,00 5,00 4,00 1,00

Cu Chi 0,20 1,00 0,20 0,13

Vn-Sin 0,25 5,00 1,00 0,33

Nhon Trach 1,00 8,00 3,00 1,00

Total 2,45 19,00 8,20 2,46

Area Amata Cu Chi Vn-Sin Nhon Trach

Amata 0,41 0,26 0,49 0,41

Cu Chi 0,08 0,05 0,02 0,05

Vn-Sin 0,10 0,26 0,12 0,14

Nhon Trach 0,41 0,42 0,37 0,41

Row averages

0,39

0,05

0,16

0,40

Consistency Vector

1,68

0,21

0,65

1,68

𝐶𝑅=𝐶𝐼𝑅𝐼

=0.060.9

=0.06

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 PricePower Price Amata Cu Chi Vn-Sin Nhon Trach

Amata 1,00 1,00 4,00 0,20

Cu Chi 1,00 1,00 6,00 0,14

Vn-Sin 0,25 0,17 1,00 0,13

Nhon Trach 5,00 7,00 8,00 1,00

Power Price Amata Cu Chi Vn-Sin Nhon Trach

Amata 0,20 0,11 0,21 0,14

Cu Chi 0,20 0,11 0,32 0,10

Vn-Sin 0,05 0,02 0,05 0,09

Nhon Trach 1,00 0,76 0,42 0,68

Row average

0.15

0.28

0.05

0.73

Consistency Vector

4.06

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 ForceLabor force Amata Cu Chi Vn-Sin 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 1,00

Labor force Amata Cu Chi Vn-Sin 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

Consistency Vector

4,19

4,05

4,39

4,04

CI 0.08

CR 0.09

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 TreatmentWaste water Treatment Amata 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 7,00

Nhon Trach 0,50 3,00 0,14 1,00

Waste Water Treatment Amata Cu Chi Vn-Sin 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

Consistency Vector

4,19

4,05

4,39

4,04

CI 0.06

CR 0.06

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

Determining factor weightsArea

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

Treatement 2,00 4,00 0,20 1,00Area Power Price Labour Force Treatment

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

Row average

0.150.070.570.21

Weight sum factors

0,61

0,29

2,57

0,90

Consistency vector

4,10

4,08

4,52

4,25

CI 0.08

CR 0.09

Factor Weight Table

Area0,61

Power price0,29

Labor Force2,57

Waste water treatment

0,90

Overall ranking

Area 0,15

Power price 0,07

Labor Force 0,57

Waste water treatment 0,21

Amata 0,68Cu Chi 1,76Vn-Sin 0,83Nhon Trach 1,13

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.

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

(km)

Plant-

center

HCMC Can Tho Da Nang Ha Noi

Cu Chi 60 181 829 1606

TC 1.5 2.715 8.29 16.06

Holding

cost at

centers

0.02 0.015 0.01 0.025

Distance (km) HCMC Transportation cost

($/product)

Kien Giang 248 37.2

Can Tho 168 25.2

Vung Tau 129 19.35

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

Distance (km) Can Tho Transportation cost

($/product)

Kien Giang 128 12.8

HCMC 168 16.8

Vung Tau 293 29.3

Binh Thuan 366 36.6

Khanh Hoa 616 61.6

Binh Dinh 854 85.4

Da Nang 1032 103.2

Hue 1265 126.5

Nghe An 1371 137.1

Ha Noi 1877 187.7

Lai Chau 1946 194.6

Hai Phong 1650 165

Lang Son 1767 176.7

Cao Bang 1897 189.7

Distance (km) Da Nang Transportation cost

($/product)

Kien Giang 1246 149.52

Can Tho 1032 123.84

HCMC 872 104.64

Vung Tau 851 102.12

Binh Thuan 759 91.08

Khanh Hoa 539 64.68

Binh Dinh 290 34.8

Hue 87 10.44

Nghe An 568 68.16

Ha Noi 763 91.56

Lai Chau 1110 133.2

Hai Phong 784 94.08

Lang Son 952 114.24

Cao Bang 1031 123.72

Distance (km) Ha Noi Transportation cost

($/product)

Kien Giang 1958 293.7

Can Tho 1877 281.55

HCMC 1710 256.5

Vung Tau 1662 249.3

Binh Thuan 1503 225.45

Khanh Hoa 1262 189.3

Binh Dinh 1049 157.35

Da Nang 763 114.45

Hue 658 98.7

Nghe An 292 43.8

Lai Chau 402 60.3

Hai Phong 103 15.45

Lang Son 154 23.1

Cao Bang 272 40.8

Location 

Distance Transportation cost

($/product)

Holding cost at

stores

Kien Giang 45 1.26 0.01

Can Tho 21 0.651 0.015

HCMC 25.8 0.903 0.018

Vung Tau 25.2 0.756 0.015

Binh Thuan 49.9 1.3473 0.01

Khanh Hoa 40.8 1.224 0.008

Binh Dinh 43.9 1.317 0.01

Da Nang 20 0.7 0.019

Hue 40 1.24 0.012

Nghe An 72.5 2.1025 0.015

Ha Noi 32.6 1.141 0.017

Lai Chau 53.7 1.6647 0.01

Hai Phong 22 0.726 0.009

Lang Son 51.5 1.442 0.008

Cao Bang 46.2 1.386 0.01

Now we find the demands for each month for each stores

Month Kien Giang Can Tho HCMC Vung Tau

1 3780 5040 6300 4620

2 3150 4200 5250 3850

3 3960 5280 6600 4840

4 2610 3480 4350 3190

5 4770 6360 7950 5830

6 3420 4560 5700 4180

7 4050 5400 6750 4950

8 5580 7440 9300 6820

9 4680 6240 7800 5720

10 3510 4680 5850 4290

11 5040 6720 8400 6160

12 6300 8400 10500 7700

Month Binh Thuan Khanh Hoa Binh Dinh Da Nang

1 3360 4620 4200 5460

2 2800 3850 3500 4550

3 3520 4840 4400 5720

4 2320 3190 2900 3770

5 4240 5830 5300 6890

6 3040 4180 3800 4940

7 3600 4950 4500 5850

8 4960 6820 6200 8060

9 4160 5720 5200 6760

10 3120 4290 3900 5070

11 4480 6160 5600 7280

12 5600 7700 7000 9100

Month Hue Nghe An Ha Noi Lai Chau

1 4200 3780 6300 4200

2 3500 3150 5250 3500

3 4400 3960 6600 4400

4 2900 2610 4350 2900

5 5300 4770 7950 5300

6 3800 3420 5700 3800

7 4500 4050 6750 4500

8 6200 5580 9300 6200

9 5200 4680 7800 5200

10 3900 3510 5850 3900

11 5600 5040 8400 5600

12 7000 6300 10500 7000

Month Hai Phong Lang Son Cao Bang

1 5040 2940 2940

2 4200 2450 2450

3 5280 3080 3080

4 3480 2030 2030

5 6360 3170 3170

6 4560 2660 2660

7 5400 3150 3150

8 7440 4340 4340

9 6240 3640 3640

10 4680 2730 2730

11 6720 3920 3920

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 centerNumber of item shipped from centers to retailers should be less than or equal

the capacity of each retail storesNumber of item shipped from center to retail stores should be less than or

equal 15000Number of item shipped from centers to retailers should be less than or equal

the number shipped to that centerWe 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

+ TC plant-center

22800 40950 124500 241275

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.