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.