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VYAS ,APOORV AGARWAL,AASTHA

POKHARNA, ANURAG

OPERATION RESEARCH
PROJECT
SCOTSVILLE TEXTILE MILL

Scottsville Textile Mill


Case Study:
The Scottsville Textile Mill produces five different fabrics. Each fabric can be woven on one or
more of the mills 38 looms. The sales departments 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
(yards)

Selling Price
($/yard)

16,500

0.99

Variable Cost
($/yard)
0.66

2
3
4
5

22,000
62,000
7,500
62,000

0.86
1.10
1.24
0.70

0.55
0.49
0.51
0.50

Dobbie
4.63
4.63
5.23
5.23
4.17

0.80
0.70
0.60
0.70
0.70

Loom Production Rates for the Scotsville Textile Mill


Fabric
1
2
3
4
5

Purchase Price
($/yard)

Regular
5.23
5.23
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?)

SolutionsVariable 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
1
2
3
4
5

Dobbie
1 / 4.63 =
1 / 4.63 =
1 / 5.23 =
1 / 5.23 =
1 / 4.17 =

0.215983
0.215983
0.191205
0.191205
0.239808

Regular
1 / 5.23 = 0.191205
1 / 5.23 = 0.191205
1 / 4.17 = 0.239808

Total no. of loom hours availableDobbie 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 Variable cost)
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-.50=0.20

When Purchased (Selling


Price Purchase Price)
0.99-0.80=0.19
0.86-0.70=0.16

1.10-0.60=0.50
1.24-0.70=0.54
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:
Infeasibilities:
Total solver iterations:
Elapsed runtime seconds:

62548.86
0.000000
6
0.03

Model Class:

LP

Total variables:
Nonlinear variables:
Integer variables:

13
0
0

Total constraints:
Nonlinear constraints:

8
0

Total nonzeros:
Nonlinear nonzeros:

33
0

Variable
X1
X2
X3
X4
X5
X6
X7
X8
X9
X10
X11
X12
X13
Row
1
2
3
4
5
6
7
8

Value
4666.667
22000.00
0.000000
0.000000
0.000000
27868.42
7500.000
62000.00
11833.33
0.000000
34131.58
0.000000
0.000000
Slack or Surplus
62548.86
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000

Reduced Cost
0.000000
0.000000
0.1379630E-01
0.1314815E-01
0.1660819E-01
0.000000
0.000000
0.000000
0.000000
0.1000000E-01
0.000000
0.8000000E-01
0.6105263E-01
Dual Price
1.000000
0.1900000
0.1700000
0.5000000
0.6200000
0.6105263E-01
0.6481481
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:

Variable
X1
X2
X3
X4
X5
X6
X7
X8
X9
X10
X11
X12
X13

Current
Allowable
Allowable
Coefficient
Increase
Decrease
0.3300000
0.1000000E-01 0.1494737E-01
0.3100000
INFINITY
0.1000000E-01
0.6100000
0.1379630E-01
INFINITY
0.7300000
0.1314815E-01
INFINITY
0.2000000
0.1660819E-01
INFINITY
0.6100000
0.1314815E-01 0.1100000
0.7300000
INFINITY
0.1314815E-01
0.2000000
INFINITY
0.1660819E-01
0.1900000
0.1494737E-01 0.1000000E-01
0.1600000
0.1000000E-01
INFINITY
0.5000000
0.1100000
0.1314815E-01
0.5400000
0.8000000E-01
INFINITY
0.000000
0.6105263E-01
INFINITY

Righthand Side Ranges:

Row
2
3
4
5
6
7
8

Current
RHS
16500.00
22000.00
62000.00
7500.000
62000.00
5760.000
21600.00

Allowable
Increase
INFINITY
4666.667
INFINITY
27868.42
22062.50
2556.000
6485.000

Allowable
Decrease
11833.33
11833.33
34131.58
7500.000
27020.83
1008.000
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.