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Nmo Fa 2 PDF

The document discusses the application of the Simplex Method for optimizing product mix in furniture manufacturing to maximize profit while adhering to constraints such as labor hours and raw materials. A case study illustrates the problem formulation, mathematical modeling, and the optimal solution, which results in producing 40 chairs and 20 tables for a maximum profit of ₹24,200. It highlights the benefits of efficient resource use, data-driven planning, and the potential for future enhancements in optimization techniques.

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shindearyan2000
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15 views13 pages

Nmo Fa 2 PDF

The document discusses the application of the Simplex Method for optimizing product mix in furniture manufacturing to maximize profit while adhering to constraints such as labor hours and raw materials. A case study illustrates the problem formulation, mathematical modeling, and the optimal solution, which results in producing 40 chairs and 20 tables for a maximum profit of ₹24,200. It highlights the benefits of efficient resource use, data-driven planning, and the potential for future enhancements in optimization techniques.

Uploaded by

shindearyan2000
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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PRODUCT MIX

OPTIMIZATION IN
MANUFACTURING USING
THE SIMPLEX METHOD
PRESENTED BY : ARYAN SHINDE(122B1G174)
ADITYA SHINDE (122B1G172)
KRUSHNA WANDHEKAR (122B1G201)
Introduction.
Optimization is a mathematical approach used to identify the best
possible solution to a problem by maximizing or minimizing an
objective function—such as profit, cost, efficiency, or performance
—while satisfying a set of constraints that reflect real-world
limitations like resource availability, time, or capacity.
.
It is a fundamental tool in decision-making across various
industries, including manufacturing, logistics, engineering, and
finance, where optimal allocation of limited resources is crucial. By
formulating problems in terms of decision variables, objective help
organizations improve productivity, reduce costs, and make data-
driven strategic choices.

Whether it's determining the ideal product mix in a factory or


designing energy-efficient systems, optimization provides a
structured and analytical way to arrive at the most effective
solutions.
Case Study
Overview
Industry: Furniture Manufacturing (Chairs & Tables)

Objective: Maximize profit by choosing the right product mix.

Constraints: Limited labor hours and raw materials.

Decision Variables: Number of chairs and tables to produce per week.


Problem Statement
A factory produces:
Chairs: Profit ₹300, requires 3 labour hours and 4 kg wood.
Tables: Profit ₹500, requires 5 labour hours and 3 kg wood.
Available weekly resources:
240 labor hours
240 kg wood
Determine how many chairs and tables to produce for maximum profit.
Mathematical Formulation
Let:
x: Number of chairs
y: Number of tables
Objective Function:
Maximize Profit: Z=300x+500y
Subject to Constraints:
Graphical Method – Feasible Region
Shade the feasible region where both constraints overlap
Identify vertices (corner points) of the feasible region.
Vertices of Interest (Feasible Points):
(0, 48): Only tables
(60, 0): Only chairs
Point of intersection between both constraint lines.

Simulation Output (Visuals in MATLAB)


Axes:
X-axis: Number of Chairs
Y-axis: Number of Tables
Annotations:
Constraint lines labeled
Feasible region shaded
Results and Graphs
Simplex Method – Key
Steps
Formulate the objective function and constraints in standard form.
Set up the initial simplex tableau with slack variables.
Identify entering variable (most negative in the objective row).
Identify leaving variable (minimum positive ratio of RHS to pivot column).
Perform pivot operations to update the tableau.
Repeat steps 3–5 until no negative values remain in the objective row.
Read solution from final tableau: basic variables from RHS, non-basic as zero.
Optimal Solution
After solving the linear programming model using the Simplex Method,
we obtain the optimal solution:
Chairs to produce (x): 40 units
Tables to produce (y): 20 units
Z=₹300(40)+₹500(20)=₹24,200

Maximum Profit (Z): ₹24,200


Interpretation & Benefits
The optimal mix of 40 chairs and 20 tables gives a maximum profit of ₹24,200.
All available labor and wood are fully utilized, ensuring no resource wastage.
The solution lies at a vertex of the feasible region, confirming it's the best possible
under the given constraints.
This mix is both feasible and implementable in real production.

Maximized Profitability: Best use of resources to achieve the highest profit.


Efficient Resource Use: No idle capacity, minimizing cost per unit.
Data-Driven Planning: Supports smart production decisions with quantifiable
results.
Scalable Model: Can adapt to include more products or constraints.
Strategic Flexibility: Enables quick response to changes in cost, demand, or
capacity.
Limitations & Assumptions
Key Assumptions: Limitations:
Constant profit per unit (no price Ignores inventory, storage, and machine
variation) downtime
Constant resource consumption per No consideration of market demand
product fluctuations
Infinite demand (all units produced will Limited to linear constraints and
be sold) objectives
Conclusion & Future Scope
Takeaways:
Linear Programming provides a structured way to make manufacturing decisions
The Simplex Method is a reliable algorithm for solving such problems
It ensures profit maximization and resource efficiency
Future Scope:
Introduce multi-objective optimization (e.g., profit vs. sustainability)
Use AI and machine learning to predict demand constraints
Apply to logistics, supply chain, and service industries
Thank you
very much!

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