Government Silk Filature, Chikkahalli Case Analysis

By Group D2Ajay Kumar Verma

Anusha JohnRuchi Gupta

Sagar SaxenaSumit Agarwala

Assumptions

Chikkahalli do not purchase Grade C or D cocoons. Cocoons are procured only from 3+2 markets. For all the months except June and July the

purchase of Grade A cocoons is 30% of the total purchase.

For June and July the purchase of Grade A cocoons is 5% of the total purchase.

The forecasted price for 1989-1990 is used as the selling price for the silk

For 28/32 denier silk price, we have taken the average of 28/30 and 30/32.

The annual procurement of 129730 kgs is uniformly distributed over all the months.

Linear Programming

Objective FunctionMaximization of Profit

Constraints Availability of Grade A cocoon Availability of Grade B cocoon Basin hours available for 13/15 denier silk Basin hours available for other denier silk Purchase of cocoon over the year Quantity of Grade A cocoon procured from

Vijayapura, Siddalagatta, Ramanagaran is used for producing 13/15 denier silk