PGP ‘24 – ‘26

Decision Sciences II
TERM 2
Prof. Ishwar Murthy

Case Report 2

Group 6, Section H

Roll No. Name

2411536 PANKAJ KUMAR SAINI

2411541 RAUNAK SHIOCHARAN BALKOTE

2417067 JAIN AVNI ANKUR

2411584 MEHAL CHODHA

2411578 VANSHAJ CHHABRA

 1. How can Ahuja formulate the allocation problem for
swab maximization, without a budget constraint,
for five days?
The objective is to maximize the total number of swabs processed over five days.
The function to maximize is:

Where:
 III is the total number of DCCs.
 JJJ is the total number of labs.

In this formulation:
 The objective function maximizes the total number of swabs processed
over the 5 days.
  Swab collection constraints ensure that no more swabs are allocated
than are collected at each DCC.
 Lab capacity constraints account for normal and overload capacity.
 Backlog management ensures that unprocessed swabs from previous
days are carried over.
 The overload mode allows labs to handle more swabs if needed, but only
within the specified overload limits.
 Non-negativity and binary constraints ensure that the solution is
feasible and aligns with real-world conditions.

2. If Ahuja chooses weekly rather than daily

optimization, how will it affect swab allocation?
Which is better: weekly or daily optimization?
Explain your rationale clearly
When deciding between weekly optimization and daily optimization, the
core difference lies in how swab collection, lab capacity, transportation, and
backlogs are managed. The decision impacts allocation efficiency, backlog
control, and overall costs.
Weekly:

Advantages Disadvantages
Allows balancing workloads Less responsive to daily variations in swab
across the week. collection, lab capacity, and transport
availability.
Resources can be pooled for Backlogs can accumulate earlier in the
aggregate weekly goals. week, leading to delayed testing and
operational bottlenecks.
Simplified computation as it Aggregation may overlook critical daily
involves a single weekly operational constraints.
optimization problem.
Reduces urgency in addressing Delays in action could result in missed
daily fluctuations. deadlines and slower testing outcomes.
Minimizes transport costs by May fail to allocate resources optimally if
consolidating swab transfers. daily collections spike unexpectedly.
Suitable for stable, predictable Poor adaptability to dynamic, real-time
environments. operational changes (e.g., 10% daily swab
collection growth).

Dalily:

Advantages Disadvantages
Highly responsive to daily Focuses on short-term goals, which
fluctuations in swab collection, lab might lead to inefficiencies over the
capacity, and transportation. week.
Ensures timely processing of Higher complexity, requiring daily
backlogs daily, reducing risks of updates and separate optimization
overflow and delays. problems for each day.
Adaptable to real-time changes in Demands more computational effort
operational conditions. and real-time adjustments.
Reduces risks of unallocated swabs, May incur higher transport costs due to
minimizing penalties. daily adjustments and fragmented
allocation strategies.
Provides immediate feedback for Operational adjustments may strain
public health reporting and testing resources without an aggregate weekly
goals. plan.
Suitable for dynamic environments Risk of over-prioritizing immediate
with variability in collections, needs over longer-term efficiency.
capacities, or transport.

Recommendation: Daily Optimization

1. Why Daily Optimization is Better:
o Dynamic Conditions: The pilot project involves significant daily
variability:
 Swab collection grows 10% daily.
 Labs have varying capacities and backlogs.
o Timely Backlog Management: Daily optimization ensures labs do
not face overwhelming backlogs and meet deadlines for public
health reporting.
o Higher Testing Volume: Addressing swab collection promptly
ensures more swabs are tested within the available daily budget.
2. Potential Challenges with Weekly Optimization:
o Aggregated weekly constraints may overlook day-to-day operational
realities, such as sudden surges in swab collection or lab equipment
downtime.
o Delayed decision-making could result in unprocessed swabs, leading
to penalties and public dissatisfaction.
3. Balancing Costs and Efficiency:
o While daily optimization might incur slightly higher transportation
costs, it minimizes penalties for unallocated swabs and ensures
timely testing.
o Efficient use of la
 3. As outlined by Prasad, the state has a daily testing
budget of INR 18 million for the pilot project. What
is the impact of budget on swab allocations? Give
your recommendations on the allocated budget
and its implications.
4. Besides cost and swab allocation, what other
challenges does Ahuja face in planning the rollout
of a swab allocation strategy across the state?
1. Logistical Challenges
 Transportation and Infrastructure:
o Insufficient transport resources, especially for remote or rural areas.

o Poor road infrastructure or long distances, leading to delays in swab

transfers.
o Coordination of intra-district vs. inter-district swab transfers to
optimize time and costs.
 Lab Distribution:
o Uneven distribution of labs across districts, with some areas lacking
accessible labs.
o Overloading labs in urban areas while underutilizing labs in rural or
less populated areas.
 Supply Chain Management:
o Ensuring a steady supply of swab kits, transport materials, and
consumables like test reagents.
o Risk of supply chain disruptions due to external factors (e.g., strikes,
weather).

2. Operational Challenges
 Lab Capacity Management:
o Limited lab capacities, both in terms of equipment and skilled
personnel.
o Risk of equipment failures, downtime, or shortages in reagents
slowing down testing.
 Workforce Limitations:
o Shortages of trained healthcare workers, lab technicians, and
support staff.
 o Burnout and absenteeism among frontline workers due to high
workloads.
 Backlog Management:
o Handling backlogs efficiently while ensuring new swabs are
processed without delays.
o Avoiding over-reliance on overload capacities, which may lead to
quality issues.

3. Technological Challenges
 Data Collection and Integration:
o Ensuring accurate and real-time data on swab collections, lab
capacities, and test results.
o Lack of centralized systems to integrate data from different regions
and labs.
 Optimization Tools:
o Implementing robust optimization algorithms to allocate swabs
efficiently.
o Training personnel to use tools like Excel Solver, Python models, or
other software.
 Monitoring and Feedback:
o Building dashboards for real-time monitoring of swab allocation,
testing progress, and backlogs.
o Collecting feedback to improve future allocation strategies.

4. Coordination and Communication Challenges

 Inter-Departmental Coordination:
o Aligning efforts between public health, transport, and administrative
departments.
o Avoiding delays caused by bureaucratic processes or
miscommunication.
 Stakeholder Management:
o Managing relationships with private labs and transport contractors.

o Negotiating fair testing and transportation costs.

 Public Communication:
o Ensuring timely communication of testing results to individuals and
communities.
 o Addressing misinformation or distrust among the public about
testing strategies.

5. Social and Ethical Challenges

 Equitable Access:
o Ensuring fair allocation of resources across urban, rural, and remote
areas.
o Avoiding bias in resource distribution that favors wealthier or more
connected regions.
 Community Resistance:
o Resistance from communities due to fear of testing, stigma, or
distrust in authorities.
o Educating the public about the importance of testing and
addressing cultural barriers.
 Prioritization Decisions:
o Deciding which populations to prioritize for testing, such as high-risk
groups or essential workers.
o Balancing public health goals with resource constraints.

6. Strategic Challenges
 Scaling Up Operations:
o Expanding the pilot project to a statewide rollout requires increased
resources and coordination.
o Ensuring scalability while maintaining efficiency and minimizing
costs.
 Policy and Compliance:
o Ensuring compliance with state and national health regulations.

o Adapting strategies to policy changes or new public health

guidelines.
 Risk Management:
o Preparing for unforeseen challenges such as surges in infections or
disruptions in logistics.
o Building contingency plans to handle emergencies or spikes in
testing demand.

7. Quality Assurance Challenges

  Testing Accuracy:
o Maintaining high accuracy and reliability in testing results.

o Ensuring private labs meet the same quality standards as

government labs.
 Turnaround Times:
o Reducing delays in test result processing and reporting to support
timely decision-making.

Recommendations to Overcome Challenges

1. Enhance Infrastructure:
o Invest in transport infrastructure and regional labs to reduce travel
times and costs.
2. Strengthen Workforce:
o Train additional lab technicians and support staff to handle
increased workloads.
3. Leverage Technology:
o Implement centralized data systems and dashboards for real-time
tracking and decision-making.
o Use advanced optimization models to allocate resources effectively.

4. Promote Collaboration:
o Foster partnerships with private labs, local governments, and
community organizations.
o Ensure transparent communication and engagement with
stakeholders.
5. Plan for Equity:
o Allocate resources based on need, ensuring underserved areas
receive adequate attention.
6. Monitor and Adapt:
o Continuously monitor performance metrics and adjust strategies
based on feedback.
 5. What are the managerial implications of the
suggested swab allocation plan and its
implementation? Comment on the usefulness of
optimization models in such situations.

1. Strategic Resource Utilization

 Efficient Allocation of Resources:
o Ensures that swabs are allocated based on lab capacities and
geographic proximity, minimizing waste and delays.
o Optimizes the use of government labs (lower cost) and private labs
(higher capacity) to meet testing goals within budget constraints.
 Cost Management:
o By prioritizing cost-efficient allocations, the plan helps adhere to the
₹18 million daily budget.
o Reduces penalties for unallocated swabs and minimizes
transportation expenses through distance-based constraints.
2. Enhanced Operational Planning
 Backlog Control:
o Proactively addresses lab backlogs daily or weekly, avoiding
operational bottlenecks.
o Maintains smooth workflows across labs, reducing stress on
personnel and resources.
 Dynamic Decision-Making:
o Adapts to daily fluctuations in swab collection (e.g., 10% daily
growth), ensuring flexibility in testing operations.
o Allows for strategic use of overload capacities to handle surges in
swab collection.
3. Improved Service Delivery
 Equity in Resource Allocation:
o Ensures fair distribution of resources across districts, including rural
and underserved areas.
o Builds public trust by prioritizing testing needs without bias.

 Timely Testing:
o Reduces delays in processing and reporting test results, supporting
public health goals.
4. Stakeholder Coordination
  Interdepartmental Collaboration:
o Requires synchronized efforts between public health, transport, and
administration teams.
o Encourages partnerships with private labs to augment testing
capacities.
 Public Communication:
o Involves transparent communication about the rationale behind
allocations, reducing mistrust or resistance.
5. Scalability
 The pilot project serves as a template for scaling up to a statewide
strategy.
 Optimization models enable managers to replicate and adjust plans for
varying swab collection rates, budgets, and regional demands.

Usefulness of Optimization Models in Swab Allocation

Optimization models are invaluable in addressing the complexities of resource
allocation, especially in dynamic and constrained environments like public health
initiatives. Their benefits include:
1. Objective and Data-Driven Decision-Making
 Maximization of Outputs:
o Optimization models identify the most efficient allocation of swabs
to maximize testing within given constraints (e.g., budget, lab
capacities).
 Scenario Analysis:
o Models can simulate different scenarios (e.g., budget increases,
capacity changes) to guide strategic decisions.
2. Handling Complexity
 Multiple Constraints:
o Optimization models can simultaneously consider constraints like
lab capacities, transportation costs, daily collection growth, and
backlogs.
 Dynamic Adjustments:
o They adapt to real-time changes in inputs, ensuring allocations
remain relevant despite variability in swab collection or lab
availability.
3. Cost Efficiency
 Minimization of Costs:
 o Models help identify cost-effective allocations by prioritizing nearby
labs and minimizing expensive out-of-district transfers.
 Reduced Penalties:
o By maximizing the number of swabs processed, models minimize
unallocated swabs, reducing penalties for delayed testing.
4. Improved Operational Efficiency
 Balanced Utilization:
o Ensures labs operate within capacity, preventing underutilization or
overloading.
 Optimal Transport Planning:
o Allocates swabs to minimize travel distances and costs, ensuring
timely transfers.
5. Equity and Fairness
 Models allocate resources equitably based on needs, supporting public
health goals and reducing disparities in testing access.

Challenges and Managerial Considerations for Optimization Models

While optimization models are powerful, their success depends on managerial
oversight and appropriate implementation:
Challenges:
1. Data Quality and Availability:
o Models require accurate, real-time data on swab collections, lab
capacities, distances, and costs.
o Incomplete or outdated data can lead to suboptimal allocations.

2. Complexity in Execution:
o Implementing and solving large optimization problems requires
skilled personnel and computational resources.
3. Resistance to Change:
o Stakeholders may resist decisions made by models if they are not
adequately involved or informed.
4. Over-Reliance on Models:
o Models are tools to assist decision-making but may oversimplify
real-world complexities (e.g., unpredictable disruptions).
Managerial Considerations:
1. Integrate Human Judgment:
 o Use optimization models as decision-support tools, combining their
outputs with managerial expertise.
2. Regular Monitoring and Feedback:
o Continuously monitor outcomes to ensure the model aligns with
real-world needs and adapt parameters as necessary.
3. Training and Capacity Building:
o Train staff in interpreting and implementing model outputs
effectively.
4. Transparency:
o Communicate the model’s methodology and rationale to
stakeholders to build trust and acceptance.
Conclusion
Optimization models are highly effective in designing a cost-efficient, equitable,
and scalable swab allocation strategy. They enable data-driven decision-making,
maximize resource utilization, and enhance service delivery. However, their
implementation must be supported by accurate data, stakeholder collaboration,
and managerial oversight to ensure success.
Managers like Ahuja can leverage these models not just for the pilot project but
as a foundation for broader public health initiatives, ensuring adaptability and
efficiency in dynamic environments.