This document analyzes potential sites for a new milk processing unit for Sudha Cooperative Dairy in Bihar and Jharkhand, India. It examines the current facilities and operations of Sudha Dairy. Data analysis using Excel solver is presented showing the minimum transportation costs for moving raw and processed milk to and from potential sites in Sasaram, Mahuwa, and Gaya. The conclusion is that from a financial perspective, establishing the new processing unit in Gaya would save the company the most money annually in transportation costs compared to the other sites. The recommendations are for Sudha Dairy to start the new processing unit in Gaya to reduce collection and distribution costs.

1. Minimizing cost in transporting milk for Sudha Dairy By: P Santosh Kumar (09FN-075) Pushkar Kumar Singh (09FN-082) Rajeev Kumar (09FN-088)

3. Telecommunications (network routing, queue control)

4. Manufacturing Industry (inventory control, production scheduling, capacity planning)

6. came into existence in 1983

7. Processes around 780000 litre of milk daily

9. Potential New Site

10. Data Analysis The Fig shows the excel solver output of the minimum cost incurred in transporting Raw Milk to Sasaram Processing Unit

11. Data Analysis (Cont’d) The Fig shows the excel solver output of the minimum cost incurred in transporting Processed Milk from Sasaram Processing Unit

12. Data Analysis (Cont’d) The Fig shows the excel solver output of the minimum cost incurred in transporting Raw Milk to MahawaProcessing Unit

13. Data Analysis (Cont’d) The Fig shows the excel solver output of the minimum cost incurred in transporting Processed Milk from Mahuwa Processing Unit

14. Data Analysis (Cont’d) The Fig shows the excel solver output of the minimum cost incurred in transporting Raw Milk to GAYA Processing Unit

15. Data Analysis (Cont’d) The Fig shows the excel solver output of the minimum cost incurred in transporting Processed Milk from GAYA Processing Unit

16. Conclusion

17. Conclusion (Cont’d) From a purely financial viewpoint, Gaya is the best site for the new Milk processing unit. This site would save the company about 13 Lakh rupees annually as compared to the Mahuwa alternative and about 73 lakh rupees as compared to the Sasaram alternative. However, as with any site selection decision, management must consider a wide variety of factors, including some nonfinancial ones.Management also must consider whether there are any cost trends or trends in the marketplace that might alter the picture in the future.

18. Recommendations From the value that we have obtained we would recommend Sudha to start its new processing unit at Gaya , this is going to reduce collection and distribution for tha company.

19. Bibliography AnishMishra , manager at Sudha dairy. www.energymanagertraining.com/dairy/MilkProcessing.htm dir.indiamart.com/impcat/milk-processing-plants.html