Kamdhenu Dairy_B5 (2)

7/27/2019 Kamdhenu Dairy_B5 (2)

1/25

x1 x2 x3 x4 x5

Decision variables

FA Milk +

Butter

FA Milk +

Ghee SMP + Butter SMP + Ghee WMP + Butter

0 0 0 0 5.09

Objective Function

Coefficients 503 448 544 355 910

Constraints

Butter 0.062 0.048 0.992 0.756 0.606

Ghee 0 0.048 0 0.756 0

Milk powder 0 0 1 1 1.449901768

Baby food 0 0 0 0 0

Cheese 0 0 0 0 0

Raw Milk Supply-

Summer 1 1 1 1 1

FA Milk 1 1


2/25

x6 x7 x8 x9 x10 x11 x12

WMP + Ghee

Baby food +

Butter

Baby food +

Ghee

Cheese +

Butter

Cheese +

Ghee

Standardized

Milk + Butter

Standardized

Milk + Ghee

0 4.98 0 1.83 0 0 0

745 865 633 1833 1610 759 632

0.448 0.696 0.529 0.56 0.426 0.681 0.519

0.448 0 0.529 0 0.426 0 0.519

1.449901768 0 0 0 0 0 0

0 1 1 0 0 0 0

0 0 0 1 1 0 0

1 1 1 1 1 1 1


3/25

12293.99

RHS

7.57542


4/25

Decision variables

FA Milk +

Butter

FA Milk +

Ghee SMP + Butter SMP + Ghee

WMP +

Butter

Raw milk 3.903424879 0 0 0 5.09

Objective Function

Coefficients 503 448 544 355 910

Constraints

Butter 0.062 0.048 0.992 0.756 0.606

Ghee 0 0.048 0 0.756 0

Milk powder 0 0 1 1 1.449901768

Baby food 0 0 0 0 0

Cheese 0 0 0 0 0

Raw Milk Supply-Summer 1 1 1 1 1

FA Milk 1 1


5/25

WMP + Ghee

Baby food +

Butter

Baby food +

Ghee

Cheese +

Butter

Cheese +

Ghee

Standardized

Milk + Butter

Standardized

Milk + Ghee

0 5.36 0 1.83 0 2.816575121 0

745 865 633 1833 1610 759 632

0.448 0.696 0.529 0.56 0.426 0.681 0.519

0.448 0 0.529 0 0.426 0 0.519

1.449901768 0 0 0 0 0 0

0 1 1 0 0 0 0

0 0 0 1 1 0 0

1 1 1 1 1 1 1


6/25

16536

16723.89 16723

RHS

10


7/25

Decision variables

FA Milk +

Butter

FA Milk +


WMP +

Butter

7.595705894 0 0 0 2.474294106

Objective Function

Coefficients 503 448 544 355 910

Constraints

Butter 0.062 0.048 0.992 0.756 0.606

Ghee 0 0.048 0 0.756 0

Milk powder 0 0 1 1 1.449901768

Baby food 0 0 0 0 0

Cheese 0 0 0 0 0


FA Milk 1 1


8/25

WMP + Ghee

Baby food +

Butter

Baby food +

Ghee

Cheese +

Butter

Cheese +

Ghee

Standardized

Milk + Butter

Standardized

Milk + Ghee

0 0 0 1.83 0 0 0

745 865 633 1833 1610 759 632

0.448 0.696 0.529 0.56 0.426 0.681 0.519

0.448 0 0.529 0 0.426 0 0.519

1.449901768 0 0 0 0 0 0

0 1 1 0 0 0 0

0 0 0 1 1 0 0

1 1 1 1 1 1 1


9/25

9426.638

RHS

2.995156


10/25

Decision variables

FA Milk +

Butter

FA Milk +


WMP +

Butter

7.595705894 0 0 0 5.09

Objective Function

Coefficients 503 448 544 355 910

Constraints

Butter 0.062 0.048 0.992 0.756 0.606

Ghee 0 0.048 0 0.756 0

Milk powder 0 0 1 1 1.449901768

Baby food 0 0 0 0 0

Cheese 0 0 0 0 0


FA Milk 1 1


11/25

WMP + Ghee

Baby food +

Butter

Baby food +

Ghee

Cheese +

Butter

Cheese +

Ghee

Standardized

Milk + Butter

Standardized

Milk + Ghee

0 4.484294106 0 1.83 0 0 0

745 865 633 1833 1610 759 632

0.448 0.696 0.529 0.56 0.426 0.681 0.519

0.448 0 0.529 0 0.426 0 0.519

1.449901768 0 0 0 0 0 0

0 1 1 0 0 0 0

0 0 0 1 1 0 0

1 1 1 1 1 1 1


12/25

15685.84

RHS

7.701342


13/25

Units of milk allocated to

produce FA Milk + Butter


produce WMP + Butter


produce Cheese + Butter

7.595705894 2.474294106 1.83


produce FA Milk + Butter


produce WMP + Butter


produce Baby food + Butter

7.595705894 5.09 4.484294106

Cheese should not be dropped from the product line since it is one of the profitable items both i

Profits difference Actual commitment

difference in summer 2867.352299 75000

difference in winter 1038.048765

winter

real supply 3.903424879

in litres 38542.41725

less by 36457.58275

penalty 2916.60662 losspenalty is greater than the excess profit earned in winter ,therfore should not commit 75000 litre

It should commit 38542.41725

commiting 3.903424879 units of FA milk in the summer as well

loss in contribution 1413.039806

penalty 3083.39338

zero commitment can also wor

Removing butter churning and powder drying capacity(exhibit

Before

summer without Contractual O 12293.99

winter without Contractual Obli 16723.89

summer with Contractual Oblig 9426.638

winter with Contractual Obligat 15685.84447

Ideal allocation during Summer

Ideal allocation during Winter

Also the shadow price of FA Milk is negative in summers and zero in winters. Hence, Kamdhenu


14/25


produce Cheese + Butter

1.83

summers and winters.

summer

real suppl 0

in litres 0

less by 75000

1878.557855 penalty 6000 loss 3132.648penalty is greater than the excess profit earned insummer ,therfore

summer c 0

,Table 1)

After difference

12518.09 224.1

18979.09 2255.2 1578.167

9426.637701 0 134.5287

15887.6377 201.7932

iary would be better off not


15/25

should not commit 75000 litres


16/25

x1 x2 x3 x4 x5 x6 x7 x8

Decision

variables

FA Milk +

Butter

FA Milk +

Ghee

SMP +

Butter

SMP +

Ghee

WMP +

Butter

WMP +

Ghee

Baby

food +

Butter

Baby

food +

Ghee

3.903425 0 0 0 5.09 0 1.076575 0

Objective

Function

Coefficien

ts 503 448 544 355 910 745 865 633

Constraints

Butter 0.062 0.048 0.992 0.756 0.606 0.448 0.696 0.529

Ghee 0 0.048 0 0.756 0 0.448 0 0.529

Milk powd 0 0 1 1 1.449902 1.449902 0 0

Baby food 0 0 0 0 0 0 1 1

Cheese 0 0 0 0 0 0 0 0

Raw Milk

Supply-

Summer 1 1 1 1 1 1 1 1

FA Milk 1 1


17/25

x9 x10 x11 x12

Cheese +

Butter

Cheese +

Ghee

Standardi

zed Milk +

Butter

Standardi

zed Milk

+ Ghee

1.83 0 0 0

1833 1610 759 632 10880.95

RHS

0.56 0.426 0.681 0.519 5.100649


18/25

x1 x2 x3 x4 x5 x6 x7 x8

Decision

variables

FA Milk +

Butter

FA Milk +

Ghee

SMP +

Butter

SMP +

Ghee

WMP +

Butter

WMP +

Ghee

Baby

food +

Butter

Baby

food +

Ghee

0 0 0 0 10.07 0 0 0

Objective

Function

Coefficien

ts 503 448 544 355 910 745 865 633

Constraints

Butter 0.062 0.048 0.992 0.756 0.606 0.448 0.696 0.529

Ghee 0 0.048 0 0.756 0 0.448 0 0.529

Milk powd 0 0 1 1 1.449902 1.449902 0 0

Baby food 0 0 0 0 0 0 1 1

Cheese 0 0 0 0 0 0 0 0

Raw Milk

Supply-

Summer 1 1 1 1 1 1 1 1

FA Milk 1 1


19/25

x9 x10 x11 x12

Cheese +

Butter

Cheese +

Ghee

Standardi

zed Milk +

Butter

Standardi

zed Milk

+ Ghee

1.83 0 0 0

1833 1610 759 632 12518.09

RHS

0.56 0.426 0.681 0.519 7.12722


20/25

Decision

variables

FA Milk +

Butter

FA Milk +

Ghee

SMP +

Butter

SMP +

Ghee

WMP +

Butter

WMP +

Ghee

Baby

food +

Butter

Baby

food +

Ghee

Raw milk 0 0 0 0 17.17 0 0 0

Objective

Function

Coefficien

ts 503 448 544 355 910 745 865 633

Constraints

Butter 0.062 0.048 0.992 0.756 0.606 0.448 0.696 0.529

Ghee 0 0.048 0 0.756 0 0.448 0 0.529

Milk powd 0 0 1 1 1.449902 1.449902 0 0

Baby food 0 0 0 0 0 0 1 1

Cheese 0 0 0 0 0 0 0 0

Raw Milk

Supply-

Summer 1 1 1 1 1 1 1 1

FA Milk 1 1


21/25

Cheese +

Butter

Cheese +

Ghee

Standardi

zed Milk +

Butter

Standardi

zed Milk

+ Ghee

1.83 0 0 0

16536

1833 1610 759 632 18979.09 16723

RHS

0.56 0.426 0.681 0.519 11.42982


22/25

Decision

variables

FA Milk +

Butter

FA Milk +

Ghee

SMP +

Butter

SMP +

Ghee

WMP +

Butter

WMP +

Ghee

Baby

food +

Butter

Baby

food +

Ghee

7.595706 0 0 0 2.474294 0 0 0

Objective

Function

Coefficien

ts 503 448 544 355 910 745 865 633

Constraints

Butter 0.062 0.048 0.992 0.756 0.606 0.448 0.696 0.529

Ghee 0 0.048 0 0.756 0 0.448 0 0.529

Milk powd 0 0 1 1 1.449902 1.449902 0 0

Baby food 0 0 0 0 0 0 1 1

Cheese 0 0 0 0 0 0 0 0

Raw Milk

Supply-

Summer 1 1 1 1 1 1 1 1

FA Milk 1 1


23/25

Cheese +

Butter

Cheese +

Ghee

Standardi

zed Milk +

Butter

Standardi

zed Milk

+ Ghee

1.83 0 0 0

1833 1610 759 632 9426.638

RHS

0.56 0.426 0.681 0.519 2.995156


24/25

Decision

variables

FA Milk +

Butter

FA Milk +

Ghee

SMP +

Butter

SMP +

Ghee

WMP +

Butter

WMP +

Ghee

Baby

food +

Butter

Baby

food +

Ghee

7.595706 0 0 0 9.574294 0 0 0

Objective

Function

Coefficien

ts 503 448 544 355 910 745 865 633

Constraints

Butter 0.062 0.048 0.992 0.756 0.606 0.448 0.696 0.529

Ghee 0 0.048 0 0.756 0 0.448 0 0.529

Milk powd 0 0 1 1 1.449902 1.449902 0 0

Baby food 0 0 0 0 0 0 1 1

Cheese 0 0 0 0 0 0 0 0

Raw Milk

Supply-

Summer 1 1 1 1 1 1 1 1

FA Milk 1 1


25/25

Cheese +

Butter

Cheese +

Ghee

Standardi

zed Milk +

Butter

Standardi

zed Milk

+ Ghee

1.83 0 0 0

1833 1610 759 632 15887.64

RHS

0.56 0.426 0.681 0.519 7.297756

Kamdhenu Dairy_B5 (2)

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