OPERATIONS

•SUBMITTED BY
RESEARCH
•GUNJAN SHARMA – 19F522
PROJECT: PROFIT
MAXIMIZATION FOR •PRAVISH KHARE – 19F541
MANDEEP •SIMRIN CHERIAN – 19F552
MARBLES USING •RAJIT GHOSH – 19F542
LINEAR •ASHWIN PILLAI – 19F561
PROGRAMMING
 What is LP?

-Linear programming (LP) can be defined as the problem of maximizing or minimizing a linear
function subject to linear constraints. The constraints may be equalities or inequalities.
-Linear programming problems are an important class of optimization problems, that helps to find
the feasible region and optimize the solution in order to have the highest or lowest value of the
function.
-Linear programming is the method of considering different inequalities relevant to a situation and
calculating the best value that is required to be obtained in those conditions.
-Components of Linear Programming are:
-Decision variables, Constraints, Data and Objective Function.
 PROBLEM STATEMENT

Mandeep Marbles has to decide:

• How many of each product it has to sell in order to maximize profits among its 3
products?
• How much variation can be brought into the price in order to increase profits from the
existing profit?
• What will the effect be if they increase or decrease the available resources(cost)?
 OBJECTIVE FUNCTION

• Maximisation of Profits
• Mandeep Marbles acquires raw stones, transforms them into finished products.
• Products – Italian marble, Granite, Plain marble
• Processes involved - Cutting them into different shapes
• Expenditure involved - Labor, Raw materials
 DECISION VARIABLES

• Number of finished Italian Marble slabs

• Number of finished Granite Slabs
• Number of finished Plain Marble Slabs
 CONSTRAINTS

• Cost of Stone Per Unit has to be less than or equal to 100000

• Labour Cost Per Hour has to be less than or equal to 55000
• River Sand has to be less than or equal to 20000
• Cement has to be less than or equal to 30000

-The constraint is the availability of these resources.

ANSWER REPORT ANALYSIS
 INTERPRETATION

• First thing to note here, we have got some value as slack for cement constraint, from
which we can interpret that it is not a binding constraint, which means it is not
contributing in our optimal solution of the objective function.
SENSITIVITY ANALYSIS
 INTERPRETATION

• We can see that reduced cost is zero for all three of its products, which means there is no
need for him to make any changes in the profit margin in selling price of its finished
products.
• Allowable increase or allowable decrease: Here the owner can increase the profit margin
for Italian margin up to Rs. 488, if he decides to go above the limit, the optimal solution
will get changed and the new range of allowable values will be given back in the solution.
 INTERPRETATION

• Shadow price, which basically means how much the final value will be impacted for one
unit change in the right side of constraints.
• In this case if we increase the total budget available for River sand by 1 unit means from
Rs. 1,00,000 to Rs. 1,00,001 we can see that the final value will increase by Rs. 1.57
 Conclusion

During this whole process of applying LP to his data, various findings were deduced which
can be very helpful to the owner to maximize his profits and have an optimum use of its raw
materials and its other constraints. It will allow the decision maker to make a decision
regarding the usage and inventory management of its raw materials and if he should hire
more labour or not to increase his productivity to achieve his aim of maximizing the profits.