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PLANNING PRODUCT MIX FOR PANCHTANTRA

PLANNING PRODUCT MIX FOR PANCHTANTRA CORP Group members :- (11) Khusboo Chinoy - Khusboo Prasad- (33)

CORP

PLANNING PRODUCT MIX FOR PANCHTANTRA CORP Group members :- (11) Khusboo Chinoy - Khusboo Prasad- (33)

Group members :-

(11)

Khusboo Chinoy - Khusboo Prasad-

(33)

 

Simi Mandalia

-

(39)

Avani Mehta

-

(40)

INTRODUCTION TO THE CASE

INTRODUCTION TO THE CASE Ganesh, Project Director for Kapadkunj Intensive Handloom Development (IHD) Project of the

Ganesh, Project Director for Kapadkunj Intensive

Handloom Development (IHD) Project of the

PANCHTANTRA Corporation, was preparing the production plan for his project for the next month.

  • Following information’s are available

regarding the project:

Two types of Handloom Product

  • 60 x 40 Lungis

  • 40 x 40 Shirtings

  • Ganesh expected 3000 loom days of production capacity

  • Has 480 Kgs of 60s Yarn and 2400 Kgs of

40s Yarn

  • Production capacity is not to be increased

from 11000 m of Lungis & 22000 m of

Shirting’s

  • Ganesh aimed at produce as much quantities of lungis as possible, this quantity is limited by sales manager instruction.(i.e. not more than 11000 meters.)

GANESH(PD FOR KAPADKUNJ IHD) PLAN

GANESH(PD FOR KAPADKUNJ IHD) PLAN  Aimed to produce as much as Lungis as possible 

Aimed to produce as much as Lungis as possible

  • Had allocated remaining Loom capacity for the production of Shirting

GANESH’S PLAN

GANESH’S PLAN So first by following Ganesh plan we get following quantity, Ganesh want to produce

So first by following Ganesh plan we get following quantity, Ganesh want to produce as much of lungis as possible so,

loom days

3000

40 yarn

2400k.g

2400x1000/60

=40000m

60 yarn

480k.g

480x1000/40

=12000m

max. qty.

11000m

But maximum 11000m can be produce So producing 11000m lungis we required) 2200 loom days. So remaining 800 loom days will allotted to shirting material production. So (800 x 12) 9600m of shirting material can be produced.

So here Ganesh produce Lungis = 11000m Shirting material = 9600m Profit = Rs. 15660

GANPATHY’S PLAN

GANPATHY’S PLAN By following Ganpathy plan we get following quantity, Ganpathy want to produce as much

By following Ganpathy plan we get following quantity, Ganpathy want to produce as much of shirting material as possible.

So we get following quantity

loom days

40s yarn

for production restriction(shirting)

3000

2400k.g

22000m

2400x1000/100

=24000m

But maximum 22000m can be produce

So producing 22000m of shirting material we required (22000x100/1000) 2200 k,g of 40 yarn material

So with remaining 200k.g of 40 yarn material we produce (200x1000/60) 3333.3m of

shirting materials.

So here Ganesh produce Lungis = 3333m Shirting material = 22000m Profit will be Rs. 16199.7 So by looking both plant we can say that Ganpathy plan is better than ganesh

plan because its gave more revenue.

Q.1) What product mix will maximize ganesh’s project profit?

Let assume, x1 = meters of production of lungis material

x2 = meters of production of shirting material

SO, objective function will be,

max Z = 0.9x1 + 0.6x2

Subject to following constraints,

1.) x1/5 + x2/12 <=3000 for loom days availability

2.) 0.06x1 + 0.1x2 <=2400

for 40s yarn

3.) 0.04x1 <=480

for 60s yarn

4.) x1 <=11000 for production restriction for lungis

5.) x2 <=22000

production restriction for shirting

So, by solving in Excel we get,

 

X1

x2

utilization

sign

r.h.s

loom days

0.2

0.083

3000

<=

3000

40s yarn

0.06

0.1

2400

<=

2400

60s yarn

0.04

0

268.4420772

<=

480

For production restriction

(lungis)

1

0

6711.051931

<=

11000

For production restriction

 

(shirting)

0

1

19973.36884

<=

22000

ob. Function

0.9

0.6

Value

6711.052

19973.37

Max z

18023.97

So, optimum product mix will be produce 6711m lungis and 19973m of shirting materials. And profit at optimum product mix will be

Rs.18023.97

By his previous plan profit was Rs. 15660

so we recommended Ganesh to follow optimum product mix quantity to

increase his plants profit.

Q.2) WHAT PRODUCT MIX WILL RECOMMENDED TO GAVE

MINIMUM WAGES TO WAIVER OF RS.61500?

Q.2) WHAT PRODUCT MIX WILL RECOMMENDED TO GAVE MINIMUM WAGES TO WAIVER OF RS.61500? Max Z
Q.2) WHAT PRODUCT MIX WILL RECOMMENDED TO GAVE MINIMUM WAGES TO WAIVER OF RS.61500? Max Z

Max Z = 0.9x1 + 0.6x2

Subject to following constraints,

1.) x1/5 + x2/12 <=3000 for loom days availability

2.) 0.06x1 + 0.1x2 <=2400

for 40s yarn

3.) 0.04x1 <=480

for 60s yarn

4.) x1 <=11000 for production restriction for lungis

5.) x2 <=22000

production restriction for shirting

6.) 4.5x1 + 1.5x2 >=61500 for waiver constraints

So, by solving in Excel we get

 

X1

X2

Utilization

Sign

RHS

Loom days

0.2

0.083

3000

<=

3000

40s yarn

0.06

0.1

2126.122

<=

2400

60s yarn

0.04

0

328.9796

<=

480

For production restriction (lungis)

1

0

8224.49

<=

11000

For production restriction (shirtings)

0

1

16326.53

<=

22000

Waiver wa es constraints

4 5

1 5

61500

<=

So, optimum product mix will be produce 8224.49m of lungis and 16326.53m of shirting materials. And profit at optimum product mix will be Rs.17197.96

x1= 8224.49

x2=16326.53

max Z=17197.96

Wages according to 1 st answer is (4.5 x 6711) + (1.5 x 19973) = Rs.60159 Wages according to 2 nd answer is (4.5 x8224.49) + (1.5 x16326.53) = Rs. 61500

So extra wages paid to the waivers is Rs.1341

Q.3) WHAT PRODUCT MIX RECOMMENDED IF NOT MORE THAN RS.1.50 LAKHS IS AVAILABLE FOR THE PROJECT?

Q.3) WHAT PRODUCT MIX RECOMMENDED IF NOT MORE THAN RS.1.50 LAKHS IS AVAILABLE FOR THE PROJECT?
Q.3) WHAT PRODUCT MIX RECOMMENDED IF NOT MORE THAN RS.1.50 LAKHS IS AVAILABLE FOR THE PROJECT?
Q.3) WHAT PRODUCT MIX RECOMMENDED IF NOT MORE THAN RS.1.50 LAKHS IS AVAILABLE FOR THE PROJECT?

max Z = 0.9x1 + 0.6x2

Subject to following constraints,

1.) x1/5 + x2/12 <=3000 for loom days availability

2.) 0.06x1 + 0.1x2 <=2400

for 40s yarn

3.) 0.04x1 <=480

for 60s yarn

4.) x1 <=11000 for production restriction for lungis

5.) x2 <=22000

production restriction for shirting

6.) 4.5x1 + 1.5x2 >=61500 for waiver constraints 7.) 10x1 + 6x2 <=150000 for money constraint

So, by solving in Excel we get

RHS

X1

X2

Utilization

Sign

Loom days

0.2

0.083

2753.333

<=

3000

40s yarn

0.06

0.1

1326.667

<=

2400

60s yarn

0.04

0

440

<=

480

For production restriction (lungis)

1

0

11000

<=

11000

For production restriction (shirtings)

0

1

6666.667

<=

22000

Waiver wages constraints

4.5

1.5

59500

<=

61500

Money constraints

10

6

150000

<=

150000

Ob. Function

0.9

0.6

Value

11000

6666.67

Max z.

13900

So, optimum product mix will be produce 11000m of lungis and 6667 of shirting materials. r

And

r

fit

t

tim

m

r

d

t mi

ill b

R

13900

ith m

n

tri

ti

n

THANK YOU

THANK YOU