BME

LINEAR PROGRAMMING MODEL

Case Study No2 Production Planning
M/S Godrej Pvt Ltd. produces three types of bookcases namely STANDARD, NARROW, WIDE,
which it sells to large office supply companies.
Production of each bookcase requires two machine operations, trimming and shaping, followed by
assembly which includes inspection & packaging.
All three types of bookcases require 0.4 hours of assembly time, but machine operations trimming &
shaping requires different processing time, as shown in the table below:

Standard Narrow Wide
Trimmer 0.2 0.4 0.6
Shaper 0.6 0.2 0.5
Assembly 0.4 0.4 0.4

Each machine is available for 150 hours per month and assembly department has the capacity of 600
hours. Each bookcase contribution to profit is given below:

Standard Narrow Wide
Profit 8 6 10

Draw a spreadsheet model to decide optimal production quantities for M/S Godrej Pvt. Ltd.
Solution:
Model Formulation:
Identify Objective:
Maximize profit from the three types of products. (Should not have any doubt about it)

Identify Decision Variables:
1. Number of Standard Bookcases to produce? ( Call it Y1)
2. Number of Narrow Bookcases to produce? ( Call it Y2)
3. Number of Wide Bookcases to produce? ( Call it Y3)
Let us put it down in excel array form
Standard Narrow Wide
Number to Produce Y1 Y2 Y3

Identify Constraints by names:
1. Trimmer machine is available in a month for 150 hours
2. Shaper machine is available in a month for 150 hours
3. Assembly department can provide efforts for 600 hours
(All values for a month)


Write Objective Function in algebric form:
Maximize 8 * Y1 + 6 * Y2 + 10 * Y3
( Profit from Standard + Profit from Narrow + Profit from Wide)
Write Constraints in algebric form:
1. Trimmer time 0.2 * Y1+ 0.4 * Y2 + 0.6 * Y3 <= 150 hours
( This is sumproduct of Y1,Y2,Y3(DV) with 0.2, 0.4, 0.6 trimmer times)
2. Shaper time 0.6 * Y1+ 0.2 * Y2 + 0.5 * Y3 <= 150 hours
( This is sumproduct of Y1,Y2,Y3(DV) with 0.6, 0.2, 0.5 shaper times)
3. Assembly time 0.4 * Y1+ 0.4 * Y2 + 0.4 * Y3 <= 600 hours
( This is sumproduct of Y1,Y2,Y3(DV) with 0.4, 0.4, 0.4 assembly times)
4. Values of Y1, Y2 and Y3 must be integers.( why think?)
You should now be able to extrapolate this algebraic model to spreadsheet.
Make sure you do it yourself without any bodys help.