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Optimisation of Product Mix in Apparel Industry

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Sawan Achary

This document discusses optimizing product mix in the apparel industry using linear programming. It presents a case study of Company X, which produces five men's clothing items. The objective is to determine the optimal production quantities of each item to maximize total profit, given constraints on available resources like fabrics, labor hours, and machine times. Equations are set up as a linear program to model this problem, with decision variables for production quantities of each item and constraints for not exceeding available resource levels. The optimal solution will provide the product mix that generates the highest total profit within the resource constraints.

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Optimisation of Product Mix in Apparel Industry

Uploaded by

Sawan Achary
62 views13 pages
This document discusses optimizing product mix in the apparel industry using linear programming. It presents a case study of Company X, which produces five men's clothing items. The objective is to determine the optimal production quantities of each item to maximize total profit, given constraints on available resources like fabrics, labor hours, and machine times. Equations are set up as a linear program to model this problem, with decision variables for production quantities of each item and constraints for not exceeding available resource levels. The optimal solution will provide the product mix that generates the highest total profit within the resource constraints.

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Organizational behaviour

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OR_GROUP-4

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This document discusses optimizing product mix in the apparel industry using linear programming. It presents a case study of Company X, which produces five men's clothing items. The objective is to determine the optimal production quantities of each item to maximize total profit, given constraints on available resources like fabrics, labor hours, and machine times. Equations are set up as a linear program to model this problem, with decision variables for production quantities of each item and constraints for not exceeding available resource levels. The optimal solution will provide the product mix that generates the highest total profit within the resource constraints.

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© All Rights Reserved
Download as PPTX, PDF, TXT or read online from Scribd
Download as pptx, pdf, or txt
62 views13 pages

Optimisation of Product Mix in Apparel Industry

Uploaded by

Sawan Achary
This document discusses optimizing product mix in the apparel industry using linear programming. It presents a case study of Company X, which produces five men's clothing items. The objective is to determine the optimal production quantities of each item to maximize total profit, given constraints on available resources like fabrics, labor hours, and machine times. Equations are set up as a linear program to model this problem, with decision variables for production quantities of each item and constraints for not exceeding available resource levels. The optimal solution will provide the product mix that generates the highest total profit within the resource constraints.

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OPTIMISATION OF PRODUCT

MIX IN APPAREL INDUSTRY


SUBMITTED BY :-

[GROUP – 4]

RAJ LAXMI [UM18109]


SAWAN ACHARY [UM181190]
ASEEM KALSI [UM18081]
NAVEEN RAJGARIYA [UM18099]
ABHILASH PANIGRAHI [UM18071]
CONTEXT

■ Like many other sector, apparel industry often faces operational challenges, that
can lead to low production outputs.
■ It is often, confronted with inefficient utilization of resources that makes it difficult to
ensure the optimal product mix for maximum profit, which would also fulfil customer
needs.
■ Thus, apparel manufacturing companies must adopt operations research
techniques to enhance best resource utilization that would result in optimal product
mix and total profit.
PROBLEM DEFINITION
Apparel manufacturing firms profit mainly depends on the proper allocation and usage
of available production time, material, and labor resources. Apparel manufacturing firm
profit is significantly affected by the cost of resources and resource utilization. Thus, the
linear programming problem (LPP) technique will be used to determine the product mix
that will maximize the total profit at a specified time
■ The case Company X produces for men wear: Polo shirt, basic T-shirt, mock neck T-
shirt, short pants, and singlet.
■ In line with this, the objective of the study is to suggest linear programming as a
decision tool to determine the optimal product mix for maximum profit with available
resources in the apparel sector.
■ Seven constraints (fabrics, thread, labor, overheads, cutting, sewing, and finishing
time) and five customer orders for T-shirt products have been identified.
■ The issue addressed here is to determine the product mix for optimal profit with
available resources, using the linear programming technique.
AVAILABLE DATA
PRODUCT RESOURCE USED PER UNIT OF PRODUCTS
FABRICS THREAD LABOUR OVERHEADS CUTTING SEWING FINISHING
POLO T-SHIRTS 315 230 11.6 30.6 1.8 22.7 2
BASIC T-SHIRTS 200 110 5 19.1 1.1 5.4 1.3
MOCK NECK T- 195 140 6.3 20.1 1.7 10.4 1.9
SHIRTS
SINGLETS 180 100 4.15 16.5 1.1 4.5 1.3
SHORT PANTS 280 200 7.5 37.5 2.6 20.1 2.6

RESOURCES DEMAND & PROFIT EARNED


RESOURCE MEASUREMENT HELD VALUE CONSUMPTIO POLO BASIC MOCK SINGLET SHORT
TYPE UNIT N VALUE T-SHIRT T-SHIRT NECK PANTS
T-
FABRICS KG 38665 20526.871 SHIRTS
THREADS Meter 26638120 132887
LABOUR INR 1009008 590765 DEMAND 15886 23916 13319 25667 12864
OVERHEADS INR 4979414 2116525 PROFIT 4.22 3.62 3.43 3.10 6.75
CUTTING h 5770 2320.42 PER
UNIT
SEWING h 44505 16705.7
FINISHING h 6195 2583
PROBLEM FORMULATION
■ To set up the model, the first level decision variables on the volume of products to be produced were set.
– X1 = number of Polo T-shirts
X2 = number of basic T-shirts
X3 = number of mock neck T-shirts
X4 = number of singlets
X5 = number of short pants
Z = Total Profit produced during the month

Now, the linear programming model, maximizing the total profit is:
Maximize Z (Birr Profit) = 5.25X1 + 4.82X2 + 4.85X3 + 3.2X4 + 6.75X5
subject to
315x1 + 200x2 + 195x3 + 180x4 + 280x5 ≤ 38,665,000 (Fabric)
230x1 + 110x2 + 140x3 + 100x4 + 200x5 ≤ 26,638,120 (Thread)
12.5x1, +5.5 x2 + 6.3x3 + 4.25x4 + 7.5x5 ≤ 1,009,008 (Labor)
31x1 + 19.1x2 + 20.1x3 + 37.5x4 + 20.1x5 ≤ 4,979,414 (Over heads)
1.8x1 + 1.1x2 + 1.7x3 + 1.1x4 + 2.6x5 ≤ 346,200 (Cutting time)
22.7x1 + 5.4x2 + 10.4x3 + 4.5x4 + 40.1x5 ≤ 2,670,300 (Sewing time)
2x1 + 1.3x2 + 1.9x3 + 1.3x4 + 2.6x5 ≤ 371,700 (Finishing time)
x1≥ 15000; x2 ≥ 35800; x3 ≥ 13500; x4 ≥ 12500; x5 ≥ 16100 (Customer orders)
The problem is converted into
canonical form by adding slack
variables ‘s’ as appropriate

Negative value of (Zj-Cj) is -6.75 &


its column index is 5.So the
entering variable is X5.
Minimum ratio is 66591.0224 & its
row index is 6.So the leaving basis
variable is S6

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