De La Salle University

Ramon V. del Rosario

College of Business

TEXTILE MILL SCHEDULING

In Partial Fulfillment of the
Course Requirements for
BUSLYTC K31
2nd Term, A.Y. 2016- 2017

Submitted by:
Chua, Chester R.
Feliciano, Karl Milton f.
Mateo, Katrina Aira G.
Molato, Sofia Cristi R.
Tan, Josef Collin A.

Submitted to:
Mr. John Elvin Lim

March 28, 2017

 I. Background of the Case

Scottsville Textile Mill is a manufacturing company that produces five types of

fabric created from their looms. The mill currently owns 38 looms: 8 are dobbie and 30
are regular. The dobbie looms are more versatile and can be used for all five fabrics
while the regular looms can produce only three.

Scottsville operates 24 hours a day and is scheduled for 30 days during the
coming month and the time required to change over from producing one fabric to
another is negligible and does not have to be considered. Scottsville is able to satisfy all
demand with either its own fabric or fabric purchased from another mill as they purchase
fabrics from other mills if they cannot produce it themselves.

II. Problem of the Case

The companys primary goal is to maximize their profit by identifying the best
production schedule and loom assignments for each fabric. They want to determine the
number of yards to be produced and the number of yards to be bought from another mill
to fulfill the demands of its customers. The demand for each fabric are given in yards,
and the selling price, variable cost, and purchase price are also stated in costs per yard.
Also given is the production rates of dobbie and regular looms per fabric.

III. Data Given

Table 9.16 MONTHLY DEMAND, SELLING PRICE, VARIABLE COST, AND PURCHASE SCOTTVILLE
TEXTILE MILL FABRICS
Selling Price Variable Cost Purchase Price
Fabric Demand (yards)
($/yard) ($/yard) ($/yard)
1 16,500 0.99 0.66 0.80
2 22,000 0.86 0.55 0.70
3 62,000 1.10 0.49 0.60
4 7,500 1.24 0.51 0.70
5 62,000 0.70 0.50 0.70

Table 9.17 LOOM PRODUCTION RATES FOR THE SCOTTSVILLE TEXTILE MILL
Loom Rate (yards/hour)
Fabric Dobbie Regular
1 4.63 -
2 4.63 -
3 5.23 5.23
4 5.23 5.23
5 4.17 4.17

IV. Descriptive Analysis

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 Fabric 3 and Fabric 5 both have the most demand of 62,000 yards each because the fabrics
might be of good quality. Fabric 4 has the lowest demand, since it has the highest selling price.

Fabric 4 has the highest selling price because its raw materials supply is limited.

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Fabric 1 has the highest variable cost because its production process costs more than the other
fabrics.

Fabric 1 has the highest purchase price because the production process costs more than the
other fabrics.

IV. Solution

Let: M1D = Yards of fabric 1 made of dobbie looms

M2D = Yards of fabric 2 made of dobbie looms

M3D = Yards of fabric 3 made of dobbie looms

M4D = Yards of fabric 4 made of dobbie looms

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 M5D = Yards of fabric 5 made of dobbie looms

M3R = Yards of fabric 3 made of regular looms

M4R = Yards of fabric 4 made of regular looms

M5R = Yards of fabric 5 made of regular looms

B1 = Yards of fabric 1 purchased

B2 = Yards of fabric 2 purchased

B3 = Yards of fabric 3 purchased

B4 = Yards of fabric 4 purchased

B5 = Yards of fabric 5 purchased

Table 5.1 - Profits from Manufactured Fabric

Fabric Selling price ($/yard) Variable cost ($/yard) Profit ($/yard)
1 0.99 0.66 0.33
2 0.86 0.55 0.31
3 1.10 0.49 0.61
4 1.24 0.51 0.73
5 0.70 0.50 0.20

Table 5.2 - Profits from Purchased Fabric:

Purchase price
Fabric Selling price ($/yard) Profit ($/yard)
($/yard)
1 0.99 0.80 0.19
2 0.86 0.70 0.16
3 1.10 0.60 0.50
4 1.24 0.70 0.54
5 0.70 0.70 0.00

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 Manufactured fabrics 1 to 5 earns more profit than purchased fabrics. The graph shows the
difference of the profit they earn per yard sold.

Table 5.3 - Production Time in Hours per Yard:

Fabric Dobbie (hours/yard) Regular (hours/yard)
1 1 4.63 = 0.21598 -
2 1 4.63 = 0.21598 -
3 1 5.23 = 0.19120 1 5.23 = 0.19120
4 1 5.23 = 0.19120 1 5.23 = 0.19120
5 1 4.17 = 0.23980 1 4.17 = 0.23980

Objective Functions:
Maximize profit, 0.61M3R + 0.73M4R + 0.20M5R + 0.33M1D + 0.31M2D + 0.61M3D + 0.73M4D +
0.20M5D + 0.19B1 + 0.16B2 + 0.50B3 + 0.54B4

Minimize cost, 0.49M3R + 0.51M4R + 0.50M5R + 0.66M1D + 0.55M2D + 0.49M3D + 0.51M4D + 0.50M5D
+ 0.80B1 + 0.70B2 + 0.60B3+ 0.70B4 + 0.70B5

Regular Hours Available Per Month:

30 looms 30 days 24hrs/day = 21,600

Dobbie Hours Available Per Month:

8 looms 30 days 24hrs/day = 5,760

Regular Looms Constraints:

0.1912M3R + 0.1912M4R + 0.2398M5R 21600

Dobbie Looms Constraints:

0.21598M1D + 0.21598M2D + 0.1912M3D + 0.1912M4d + 0.2398M5D 5760

Demand Constraints:
M1D+B1 = 16500

M2D+B2 = 22000

M3R+M3D+B3 = 62000

M4R+M4D+B4 = 7500

M5R+M5D+B5 = 62000

1. The final production schedule and loom assignments for each fabric.

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Table 6. 1 - Final Production/Purchase Schedule (Yards)
Fabric Dobbie Looms Regular Looms Purchased
1 4,669 0 11,831
2 22,000 0 0
3 0 27,711 34,289
4 0 7,500 0
5 0 62,000 0

2. The projected total contribution to profit.

0.61(27,711) + 0.73(7,500) + 0.20(62,000) + 0.33(4,669) + 0.31(22,000) + 0.61(0) + 0.73(0) +

0.20(0) + 0.19(11,831) + 0.16(0) + 0.50(34,289) + 0.54(0) = $62,531.92

3. A discussion of the value of additional loom time. (The mill is considering purchasing a ninth
dobbie loom. What is your estimate of the monthly profit contribution of this additional loom?)

Table 6.2 - Sensitivity Analysis of Constraints

Shadow Constraint
Name Final Value Lower Limit Upper Limit
Price R.H. Side
Constraint 1 21,600 0.57531 16,301.60 21,600 28,156
Constraint 2 5,760 0.64821 4,751.55 5,760 8,315.23
Constraint 3 16,500 0.19000 4,669.13 16,500 No Upper Limit
Constraint 4 22,000 0.17000 10,169.13 22,000 26,669.13
Constraint 5 62,000 0.50000 27,711.29 62,000 No Upper Limit
Constraint 6 7,500 0.62000 0.000000 7,500 35,211.29
Constraint 7 62,000 0.6204 34,660.55 62,000 84,095.07

Dobbie Hours Available (9 dobbie looms)

9 looms 30 days 24 hours = 6,480

Additional dobbie hours available:

6,480 - 5,760 = 720

Increase in Total Profit Contribution from Additional Dobbie Loom:

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 720 0.64821 = $466.7112

Total Monthly Profit Contribution from Additional Dobbie Loom:

$62,531.92 + $466.7112 = $62,998.6312

4. A discussion of the objective coefficients ranges.

The objective coefficient ranges are the ranges of values over which the coefficients in
the objective function may vary for both models but the optimal solution would remain the same
since the demand for fabrics is fixed. In other words, in table 6.3, the objective coefficient may
decrease up to the given values in the lower limit and increase up to the given values in the
upper limit and the current optimal solution would remain the optimal.

Table 6.3 - Objective Coefficient Ranges

Objective
Cell Lower Limit Upper Limit
Coefficient
M3R 0.50000 0.61 0.62394
M4R 0.71606 0.73 No Upper Limit
M5R 0.18252 0.2 No Upper Limit
M1D 0.31426 0.33 0.34000
M2D 0.30000 0.31 No Upper Limit
M3D No Lower Limit 0.61 0.62394
M4D No Lower Limit 0.73 0.74394
M5D No Lower Limit 0.2 0.21748
B1 0.18000 0.19 0.20574
B2 No Lower Limit 0.16 0.17000
B3 0.48606 0.5 0.61000
B4 No Lower Limit 0.54 0.62000
B5 No Lower Limit 0 0.06204

V. Analysis and Recommendation

Based on the computations solved, in order to acquire the maximum profit possible
given the demand and the mills current capacity, Scottsville Textile Mill must produce the
following: 4,669 yards using the Dobbie Loom, 0 yards using the Regular Loom, and purchase
11,831 yards for the Fabric 1, 22,000 yards using the Dobbie Loom, 0 yards using the Regular
Loom, and purchase 0 yards for the Fabric 2, 0 yards using the Dobbie Loom, 27,711 yards
using the Regular Loom, and purchase 34,289 yards for Fabric 3, 0 yards using the Dobbie
Loom, 7,500 yards using the Regular Loom, and purchase 0 yards for Fabric 4, and lastly 0
yards using the Dobbie Loom, 62,000 using the Regular Loom, and purchase 0 yards for Fabric
5. This would be the production schedule for the incoming month to meet the demand while still
gaining the maximum profit. The recommendation is to follow the production schedule acquired
from the computation.

It was also computed that if the mill is to purchase another Dobbie Loom, the maximum
profit attainable would also increase. With 8 Dobbie Looms, the maximum profit of the company
is $62,531.92. However, with an additional Dobbie loom, totalling to 9 Dobbie Looms all in all,
the maximum profit is increased by $466.7112 making it $62,998.63. With 10 Dobbie Looms,

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there would be an increase of $4,696.37 making it $67,695. Therefore, by adding more Dobbie
Looms, there would be more profit. It is recommended that if the mill gains more retained
earnings, it should allocate it to purchase more looms, specifically Dobbie Looms.