Section 1 ; Group 2 FT 12113 Anuja Dash FT 12102 Abhay Bohra FT 12189 Pramod Ravi Shankar FT 12127 Harendra Singh

FT 12168 Tushar Arora FT 12104 Abhilash Mohapatra

Exhibit 1 Planning Product Mix at Panchtantra Corporation

No.
1. 2.

Parameter
Selling Price (Rs per metre) Variable costs: a) Wages paid to weavers (Rs per metre) b) Yarn cost (Rs per metre)

60 x 40 lungis
Rs 10.90 Rs 4.50 Rs 5.50 Rs 0.90 5 m. 60 gms 40 gms

40 x 40 shirting
Rs 6.60 Rs 1.50 Rs 4.50 Rs 0.60 12 m. 100 gms -

3. 4. 5.

Contribution (Rs per metre) Production rate: No. of metre per loom day Yarn consumption: (in gms per metre) a) 40s yarn b) 60s yarn

Paath Section1 Group2

3/23/2012

Proble 1 Formulation Lungis in Shirting in meters meters Objective Constraint Lungis Constraint Shirting Constraint avaiability Constraint avaiability Constraint capacity

Max salable
Max salable 40s yarn

0.9 1 0 0.06 0.04 0.2

0.6 0 1 0.1 0 0.08333 <= <= <= <= <=

3/23/2012

11000 22000 2400 480 3000

3

60s yarn
production

Paath Section1 Group2

As per constraint solution Lungis in meters =6711.052 Shirting in meters =19973.37 Profit= 18023.97 As per previous production Lungis in meters =11000 Shirting in meters =9600 Profit= 15660 So Difference in profit = 2363.97

Paath Section1 Group2

3/23/2012

Paath Section1 Group2

3/23/2012

Proble 2 Formulation Lungis in Shirting in meters meters Objective .9 0.3917 0 <= 11000 meters

Constraint Max salable Lungis 1 Constraint Max salable Shirting 0 Constraint 40s yarn avaiability .06 Constraint 60s yarn avaiability .04 Constraint production capacity .2 Constraint of minimum wage rate .4 Constraint Minimum Wage Constarint 4.5

1
.1 0 .083 -.2083 1.5

<=
<= <= <= >= >=

22000 meters
2400 kg 480 kg 3000 loom days 0 61500

Paath Section1 Group2

3/23/2012

As per wage condition solution Lungis in meters =8347.582 Shirting in meters =16029.92 Profit= 13791.74 As per previous production Lungis in meters =6711.052 Shirting in meters =19973.37 Profit= 18023.97 So decrease in profit = -4160 Rs Our production decision doesn't change

Paath Section1 Group2

3/23/2012

Paath Section1 Group2

3/23/2012

Proble 3 Formulation Lungis in Shirting in meters meters Objective Constraint Max salable Lungis Constraint Max salable Shirting Constraint 40s yarn avaiability Constraint 60s yarn avaiability Constraint production capacity Constraint of Cash Availability 0.9 1 0 0.06 0.04 0.2 10 0.3917 0 1 0.1 0 0.0833 6 <= <= <= <= <= <=
Paath Section1 Group2

11000 meters 22000 meters 2400 kg 480 kg 3000 loom days 150000
3/23/2012 9

As per constraint solution Lungis in meters =1800 Shirting in meters =22000 Profit= 14820 So we are going to produce more of Shirtings

Paath Section1 Group2

3/23/2012

10

Paath Section1 Group2

3/23/2012

11