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    Operation Research Project: Scotsville Textile Mill

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    Soumyadip Roychowdhury
    The optimal production schedule for the Scottsville Textile Mill is to produce fabrics 1, 2, and 6 on dobbie and regular looms and purchase fabrics 9 and 11. This results in a projected total profit contribution of $62,548.86. Adding a ninth dobbie loom would increase profit by an estimated $1,466.56 per month. The objective coefficients' ranges indicate the ranges that the optimal solution would remain the same if the coefficients changed. The interpretation would differ for a cost minimization model versus a profit maximization model.

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    Operation Research Project: Scotsville Textile Mill

    Uploaded by

    Soumyadip Roychowdhury
    431 views7 pages
    The optimal production schedule for the Scottsville Textile Mill is to produce fabrics 1, 2, and 6 on dobbie and regular looms and purchase fabrics 9 and 11. This results in a projected total profit contribution of $62,548.86. Adding a ninth dobbie loom would increase profit by an estimated $1,466.56 per month. The objective coefficients' ranges indicate the ranges that the optimal solution would remain the same if the coefficients changed. The interpretation would differ for a cost minimization model versus a profit maximization model.

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    The optimal production schedule for the Scottsville Textile Mill is to produce fabrics 1, 2, and 6 on dobbie and regular looms and purchase fabrics 9 and 11. This results in a projected total profit contribution of $62,548.86. Adding a ninth dobbie loom would increase profit by an estimated $1,466.56 per month. The objective coefficients' ranges indicate the ranges that the optimal solution would remain the same if the coefficients changed. The interpretation would differ for a cost minimization model versus a profit maximization model.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    431 views7 pages

    Operation Research Project: Scotsville Textile Mill

    Uploaded by

    Soumyadip Roychowdhury
    The optimal production schedule for the Scottsville Textile Mill is to produce fabrics 1, 2, and 6 on dobbie and regular looms and purchase fabrics 9 and 11. This results in a projected total profit contribution of $62,548.86. Adding a ninth dobbie loom would increase profit by an estimated $1,466.56 per month. The objective coefficients' ranges indicate the ranges that the optimal solution would remain the same if the coefficients changed. The interpretation would differ for a cost minimization model versus a profit maximization model.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 7

    OPERATION RESEARCH

    PROJECT
    SCOTSVILLE TEXTILE MILL

    GROUP MEMBERS: SIDDHARTHA MODALA, AKSHAY VYAS ,APOORV


    AGARWAL,AASTHA POKHARNA, ANURAG
    Scottsville Textile Mill

    Case Study:
    The Scottsville Textile Mill produces five different fabrics. Each fabric can be woven on one
    or more of the mill’s 38 looms. The sales department’s forecast of demand for the next
    month is shown in Table 4.16, along with data on the selling price per yard, variable cost per
    yard, and purchase price per yard. The mill operates 24 hours a day and is scheduled for 30
    days during the coming month.
    The mill has two types of looms: dobbie and regular. The dobbie looms are more versatile and
    can be used for all 5 fabrics. The regular looms can produce only 3 of the fabrics. The mill has
    a total of 38 looms: 8 are dobbie and 30 are regular. The rate of production for each fabric on
    each type of loom is given in table 9.17. The time required to change over from producing
    one fabric to another is negligible and does not have to be considered.
    The Scottsville Textile Mill satisfies all demand with either its own fabric or fabric purchased
    from another mill. Fabrics that cannot be woven at the Scottsville Mill because of limited
    loom capacity will be purchased from another mill. The purchase price of each fabric is also
    shown in Table 9.16.

    Monthly Demand, Selling Price, Variable cost, and purchase price data for Scotsville
    Textile Mill Fabrics

    Fabric Demand Selling Price Variable Cost Purchase Price


    (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

    Loom Production Rates for the Scotsville Textile Mill

    Fabric Dobbie Regular


    1 4.63 -
    2 4.63 -
    3 5.23 5.23
    4 5.23 5.23
    5 4.17 4.17
    Managerial Report

    Develop a model that can be used to schedule production for the Scottsville Textile Mill, and
    at the same time, determine how many yards of each fabric must be purchased from another
    mill. Include a discussion and analysis of the following items in your report:
    1. The final production schedule and loom assignments for each fabric.
    2. The projected total contribution to profit.
    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?)
    4. A discussion of the objective coefficients’ ranges.
    5. A discussion of how the objective of minimizing total costs would provide a different model
    than the objective of maximizing total profit contribution. (How would the interpretation of
    the objective coefficients’ ranges differ for these two models?)

    Solutions-
    Variable for the Solution-

    X1: Yards of fabric 1 on dobbie loom


    X2: Yards of fabric 2 on dobbie loom
    X3: Yards of fabric 3 on dobbie loom
    X4: Yards of fabric 4 on dobbie loom
    X5: Yards of fabric 5 on dobbie loom
    X6: Yards of fabric 3 on regular loom
    X7: Yards of fabric 4 on regular loom
    X8: Yards of fabric 5 on regular loom
    X9: Yards of fabric 1 purchased
    X10: Yards of fabric 2 purchased
    X11: Yards of fabric 3 purchased
    X12: Yards of fabric 4 purchased
    X13: Yards of fabric 5 purchased

    Time taken for producing a yard-

    Fabric Dobbie Regular


    1 1 / 4.63 = 0.215983 -
    2 1 / 4.63 = 0.215983 -
    3 1 / 5.23 = 0.191205 1 / 5.23 = 0.191205
    4 1 / 5.23 = 0.191205 1 / 5.23 = 0.191205
    5 1 / 4.17 = 0.239808 1 / 4.17 = 0.239808
    Total no. of loom hours available-
    Dobbie Loom = 8 looms * 24 hrs per day * 30 days = 5760 hrs.
    Regular Loom = 30 looms * 24 hrs per day * 30 days = 21,600 hrs.

    Calculation of profit / contribution per yard –

    Fabric When Manufactured (Selling Price – When Purchased (Selling Price –


    Variable cost) Purchase Price)
    1 0.99-0.66=0.33 0.99-0.80=0.19
    2 0.86-0.55=0.31 0.86-0.70=0.16
    3 1.10-0.49=0.61 1.10-0.60=0.50
    4 1.24-0.51=0.73 1.24-0.70=0.54
    5 0.70-.50=0.20 0.70-.70=0

    Max. Z = 0.33x1 + 0.31x2 + 0.61x3 + 0.73x4 + 0.20x5 + 0.61x6 + 0.73x7 + 0.20x8 + 0.19x9 + 0.16x10
    + 0.50x11 + 0.54x12 + 0.00x13
    Subject to,
    Constraint1: X1+X9=16500 (demand for fabric 1)
    Constraint2: X2+X10=22000 (demand for fabric 2)
    Constraint3: X3+X6+X11=62000 (demand for fabric 3)
    Constraint4: X4+X7+X12=7500 (demand for fabric 4)
    Constraint5: X5+X8+X13=62000 (demand for fabric 5)

    Constraint6: Available Dobbie Loom Hrs.: 0.216X1+0.216X2+0.191X3+0.19X4+0.24X5 ≤ 5760


    Constraint7: Available Regular Loom Hrs.: 0.19X6+0.19X7+0.24X8 ≤ 21600

    Where,
    X1, X2, X3, X4, X5, X6, X7, X8, X9, X10, X11, X12, X13 ≥ 0
    LINGO OUTPUT

    Global optimal solution found.


    Objective value: 62548.86
    Infeasibilities: 0.000000
    Total solver iterations: 6
    Elapsed runtime seconds: 0.03

    Model Class: LP

    Total variables: 13
    Nonlinear variables: 0
    Integer variables: 0

    Total constraints: 8
    Nonlinear constraints: 0

    Total nonzeros: 33
    Nonlinear nonzeros: 0

    Variable Value Reduced Cost


    X1 4666.667 0.000000
    X2 22000.00 0.000000
    X3 0.000000 0.1379630E-01
    X4 0.000000 0.1314815E-01
    X5 0.000000 0.1660819E-01
    X6 27868.42 0.000000
    X7 7500.000 0.000000
    X8 62000.00 0.000000
    X9 11833.33 0.000000
    X10 0.000000 0.1000000E-01
    X11 34131.58 0.000000
    X12 0.000000 0.8000000E-01
    X13 0.000000 0.6105263E-01

    Row Slack or Surplus Dual Price


    1 62548.86 1.000000
    2 0.000000 0.1900000
    3 0.000000 0.1700000
    4 0.000000 0.5000000
    5 0.000000 0.6200000
    6 0.000000 0.6105263E-01
    7 0.000000 0.6481481
    8 0.000000 0.5789474
    Ans. 1

    X1=4666.667, X2=22000, X3=0000, X4=0000, X5=0000, X6=27868, X7=7500, X8=62000,


    X9=11833, X10=0000, X11=34131, X12=0000, X13=0000

    Ans. 2

    Optimal solution = 62,548.86

    Ans. 3
    If a new loom is added the total no. of working hours will be increased by 1 * 24 hrs. * 30 days
    = 720 hrs. the new total no. of hours is = 5760+720 = 6,480 hrs. The range is (4756, 8316).
    Since the new number of hours is within the range the optimal solution is same. So the new
    objective function is 62548.86+.648*(6480-5760)=63015.42

    Ans.4

    Ranges in which the basis is unchanged:

    Objective Coefficient Ranges:

    Current Allowable Allowable


    Variable Coefficient Increase Decrease
    X1 0.3300000 0.1000000E-01 0.1494737E-01
    X2 0.3100000 INFINITY 0.1000000E-01
    X3 0.6100000 0.1379630E-01 INFINITY
    X4 0.7300000 0.1314815E-01 INFINITY
    X5 0.2000000 0.1660819E-01 INFINITY
    X6 0.6100000 0.1314815E-01 0.1100000
    X7 0.7300000 INFINITY 0.1314815E-01
    X8 0.2000000 INFINITY 0.1660819E-01
    X9 0.1900000 0.1494737E-01 0.1000000E-01
    X10 0.1600000 0.1000000E-01 INFINITY
    X11 0.5000000 0.1100000 0.1314815E-01
    X12 0.5400000 0.8000000E-01 INFINITY
    X13 0.000000 0.6105263E-01 INFINITY
    Righthand Side Ranges:

    Current Allowable Allowable


    Row RHS Increase Decrease
    2 16500.00 INFINITY 11833.33
    3 22000.00 4666.667 11833.33
    4 62000.00 INFINITY 34131.58
    5 7500.000 27868.42 7500.000
    6 62000.00 22062.50 27020.83
    7 5760.000 2556.000 1008.000
    8 21600.00 6485.000 5295.000

    Ans.5

    The optimal solution will be same as the profit is with in the range. For max profit coefficient
    means profit contribution.
    For min cost, we assume that the cost per unit is fixed.when the cost is in the range the
    optimal solution will be same.Coefficient means cost per unit
    For both max profit and min cost their mean production schedule is the difference between
    them,which is the meaning of coefficient.

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