Indian Institute of Management Indore

Spreadsheet Modelling (PGP Indore)

Group Assignment
Time: 75 Minutes PGP-1, Term-1
Total Pages: 04 Marks: 30

Instructions:
1. Create a workbook with following nomenclature “Section Name _Group Number”. For
example, Section G_Group 03. Follow the nomenclature strictly.
2. Solve each problem on a separate worksheet and name the worksheet like P1 and P2.
3. Write the group number and section on the first sheet (named as P1) of excel file.
4. Solve the questions in the workbook and write the answers in the workbook.
5. In case of any assumption write those clearly.

Jhakaas Fashion Lines

From Andheri office building in Mumbai, Munna Michael is looking at the swarms of
Mumbaikars fight their way through the streets full of OLA and UBER cabs and the sidewalks
littered with Batata Vada stands. On this extremely humid July day, he pays particular attention
to the attire worn by numerous women and wonders what they are going to select to wear in
the fall. His thoughts are not simply random reflections but are very significant to his business
as he is the founder and manager of Jhakaas Fashion Lines, an elite women fashion clothing
company.
Today is a very important day for Munna Michael as he has a meeting with Rano Dsouza,
the production manager, to decide about the next month’s production plan for the fall line.
Specifically, he must decide about the quantity of each clothing item he should produce
provided the plant’s production capacity, limited resources, and the prediction of the demand
given by the analytic division of the company. Accurate planning for the next month’s
production is very important to fall sales because the clothing items produced by Jhakass
Fashion Lines are going to be appeared in stores across the country during November and
women generally buy the majority of the fall fashions when they first appear in November.
He sits back on his cushy chair and looks at the numerous papers sprawling on his office
desk. His eyes goes through the clothing patterns designed almost four months ago, the lists of
material requirements for each clothing pattern, and the lists of prediction of the demand by
experts from the analytic division of the company for each clothing pattern decided on the basis
of customer survey at the recently concluded Fashion Chilly Show and Bindaas Human Show.

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He also remembers the hectic and sometimes terrible days of designing the fall line. He
presented those at fashion shows in New Delhi, Bangalore, and Kolkata. Finally, he paid his
team of five fashion designers a total of Rs. 860,000 for their work on his fall line. With the
cost of hiring charming models, hair stylists for those models, and make-up artists; sewing and
fitting clothes; building the set for fashion show; choreographing and rehearsing the models
for the show; and renting the venue hall, each of the three fashion shows cost an additional Rs.
900,000.
Munna Michael analyzes the clothing patterns and material requirements. His fall line
consists of both professional and casual fashions. He has decided the price for each clothing
item by considering the quality and cost of material used, the cost of labour and machining, the
demand for the item in the market, and the reputation and image of the Jhakaas Fashion Lines
brand name.
For the fall professional line, the following items are included:
Selling Labour and
Clothing Item Material Requirements Price (Rs.) Machine cost (Rs.)
per unit per unit
3 meters of wool
Tailored wool slacks 300 160
2 meters of acetate for lining
Kashmiri sweater 1.5 meters of Kashmiri 450 150
Silk Blouse 1.5 meters of silk 180 100
Silk Camisole 0.5 meter of silk 120 60
2 meters of rayon
Tailored mini skirt 270 120
1.5 meters of acetate for lining
2.5 meters of wool
Wooleen blazer 320 140
1.5 meters of acetate for lining

For the fall casual line, the following items are included:
Selling Price Labour and
Clothing Item Material Requirements (Rs.) per Machine cost (Rs.)
unit per unit
Velvet Pants 3 meters of velvet 350 175
2 meters of acetate for lining
Cotton sweater 1.5 meters of cotton 130 60
Cotton mini skirt 0.5 meters of cotton 75 40
Velvet shirt 1.5 meters of velvet 200 160
Button-down Blouse 1.5 meters of rayon 120 90

Munna Michael knows that for the next month, he has ordered following raw material
for the fall line. The prices (per meter) and the quantity (in meters) of the materials are listed
below:

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 Material Cost per meter (Rs.) Quantity ordered (in meters)
Wool 9.00 45,000
Acetate 1.5 28,000
Kashmiri 60.00 9,000
Silk 13.00 18,000
Rayon 2.25 30,000
Velvet 12.00 20,000
Cotton 2.50 30,000

Any of the above-mentioned material that is not used in production can be sent back to
the dealer for a full refund, but the dealer will not give the refund for scrap material (refund is
given only for those materials returned in an integer number of meters). In the fall line
production, both the silk blouse and cotton sweater leaves scrap material as given below:

Clothing Item Material required Material left as rectangular scrap

Silk Blouse 2 meters of silk 0.5 meter of silk
Cotton Sweater 2 meters of cotton 0.5 meter of cotton

Munna Michael is very intelligent businessman, so he has asked Rano Dsouza to use
the rectangular scrap of silk to produce a silk camisole and to use rectangular scrap of cotton
to produce a cotton miniskirt. Therefore, if a silk blouse is produced then also a silk camisole
is produced and if a cotton sweater is produced then a cotton miniskirt is also produced to
utilize the scrap. However, a silk camisole can be produced without producing a silk blouse
and a cotton miniskirt can be produced without producing a cotton sweater. The marketing
analytics division of Jhakaas Fashion Lines has predicted the demands for some of the items
as follows. Jhakaas Fashion Lines can produce less quantity than the predicted demand, and it
is not required to meet the demand.
Item Quantity
Velvet Pants 5,500
Velvet Shirts 6,000
Kashmiri sweater 4,000
Silk Blouse 12,000
Silk Camisole 15,000
Tailored wool slacks 7,000
Tailored mini skirt 2,800
Wooleen blazer 5,000

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 Munna Michael, from his experience, wants to fulfill at least 60% of the demand for
Tailored mini skirt and Wooleen blazer to retain the loyal customer base of Jhakaas Fashion
Lines and not to lose business in the future.

Problem-1
Formulate and solve a linear programming problem to maximize the Revenue of
Jhakaas Fashion Lines for the given production, resource, and demand constraints. (You can
assume that the quantity produced for each item by Jhakaas Fashion Lines will be sold)

Problem-2
After computing the quantity of each item produced to maximize the revenue, compute
the Net Profit of Jhakaas Fashion Lines. (You can assume that the clothing designs would be
used only for this year and refund by dealer is given only after the fall season)