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    Panchtantra

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    JD_04
    The document discusses planning the product mix at Panchtantra Corporation. It provides constraints on loom capacity, yarn availability, and sales targets for lunges and shirting. The objective is to maximize total profit (Z) within these constraints. Initially, the optimal solution is found to be 6667 meters of lunges and 20000 meters of shirting, for a profit of Rs. 18000. Additional constraints are then added for wages and total costs. The final optimal solution maximizing profit within all constraints is 1800 meters of lunges and 22000 meters of shirting, for a profit of Rs. 14820.

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    Panchtantra

    Uploaded by

    JD_04
    3K views4 pages
    The document discusses planning the product mix at Panchtantra Corporation. It provides constraints on loom capacity, yarn availability, and sales targets for lunges and shirting. The objective is to maximize total profit (Z) within these constraints. Initially, the optimal solution is found to be 6667 meters of lunges and 20000 meters of shirting, for a profit of Rs. 18000. Additional constraints are then added for wages and total costs. The final optimal solution maximizing profit within all constraints is 1800 meters of lunges and 22000 meters of shirting, for a profit of Rs. 14820.

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    The document discusses planning the product mix at Panchtantra Corporation. It provides constraints on loom capacity, yarn availability, and sales targets for lunges and shirting. The objective is to maximize total profit (Z) within these constraints. Initially, the optimal solution is found to be 6667 meters of lunges and 20000 meters of shirting, for a profit of Rs. 18000. Additional constraints are then added for wages and total costs. The final optimal solution maximizing profit within all constraints is 1800 meters of lunges and 22000 meters of shirting, for a profit of Rs. 14820.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    3K views4 pages

    Panchtantra

    Uploaded by

    JD_04
    The document discusses planning the product mix at Panchtantra Corporation. It provides constraints on loom capacity, yarn availability, and sales targets for lunges and shirting. The objective is to maximize total profit (Z) within these constraints. Initially, the optimal solution is found to be 6667 meters of lunges and 20000 meters of shirting, for a profit of Rs. 18000. Additional constraints are then added for wages and total costs. The final optimal solution maximizing profit within all constraints is 1800 meters of lunges and 22000 meters of shirting, for a profit of Rs. 14820.

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    PLANNING THE PRODUCT MIX AT PANCHTANTRA

    CORPORATION

    GIVEN:-
    THE TWO TYPES OF PRODUCTS BEING PRODUCED: 60*40 LUNGIS & 40*40
    SHIRTING
    THE QUANTITY OF PRODUCTS BEING PRODUCED DEPENDS UPON:-
    1. LOOM CAPACITY (3000 LOOM DAYS)
    2. AVAILABILITY OF 40 YARN(2400 KGS) & 60 YARN(480 KGS)
    3. SALES (11000m OF LUNGI & 22000m OF SHIRTING)

    DATA REQUIRED AS PER THE GIVEN TABLE:-

    LUNGI SHIRTIN
    G
    VARIABLE COST:-WAGES(\M) 4.50 1.50
    YARN COST(\M) 5.50 4.50
    CONTRIBUTION(\M) 0.90 0.60
    PRODUCTION RATE(NO OF METRE PER LOOM 5 12
    DAY)
    YARN CONSUMPTION(IN GMS/M)
    A) 40S YARN 60 100
    B) 60S YARN
    40
    SOLN:
    LET THE DECISION VARIABLES BE;
    X1= TOTAL NO OF METRES OF LUNGIS
    X2= TOTAL NO OF METRES OF SHIRTING
    Z=TOTAL PROFIT AT THE END OF THE MONTH
    THE OBJECTIVE EQUATION WILL BE:-

    Z=0.90X1+0.60X2
    SUBJECT TO THE FOLLOWING CONSTRAINTS:-
    1. 0<=X1<=11000
    2. 0<=X2<=22000
    3. 0.2X1+0.0833X2<=3000
    4. 0.06X1+0.1X2<=2400
    5. 0.04X1<=480
    ON SOLVING THE FOLLOWING EQUATIONS, FOR THE MAMIMUM VALUES OF
    “Z” WE HAVE:-
    X1= 6667, X2=20000, Z=Rs. 18000.

    IN THE PREVIOUS CASE WE HAVE X1=11000(THE MAXIMUM LIMIT)


    SO, PUTTING THE VALUE OF X1 IN CONSTRAINT 3, WE HAVE:-
    3. 0.2*11000+0.0833X2<=3000
    implies, X2<=9600
    ON SOLVING WITH THE NEW CRITERIA WE HAVE:-
    Z=Rs. 15660.
    (i) SO THE INCREASE IN PROFITS: Rs. 2340.
    (ii) NOW, THE DAILY WAGES OF WEAVERS MUST BE: Rs. 20.50
    SO THE ADDITIONAL CONSTRAINT BECOMES:
    (4.5X1+1.5X2) / (0.2X1+0.0833X2)>=20.50
    implies, 0.4X1-0.21X2>=20.50
    ON SOLVING THE FOLLOWING EQUATIONS, WE HAVE:-
    Z= Rs. 17090, X1=8350, X2=15960.
    WAGES EXPENSES IN PREVIOUS CASE: 4.5*6667+1.5*20000=Rs.
    60001.50
    WAGES EXPENSES IN THIS CASE: 4.5*8350+1.5*15960=Rs. 61515
    EXTRA REMUNERATION PAID IN WAGES=Rs. 1513.50

    (iii) AGAIN, IT HAS BEEN MENTIONED THAT, THE TOTAL COST MUST
    NOT EXCEED 1.50 LAKHS.
    SO THE CONSTRAINT BECOMES:
    (4.50+5.50)X1+(1.50+4.50)X2<=150000
    implies, 10X1+6X2<=150000
    ON SOLVING THE FOLLOWING EQUATIONS, WE HAVE:-
    X1= 1800, X2=22000, Z=Rs. 14820.

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