Maximizing profit for the company and
Minimize transportation cost
Aunshehe Nawazi Course In charge:
MCS(1st Semester) Dr. Syed Jamal Hussain
Seat # 03
Course# 507
MAIN OBJECTIVE OF PROBLEM:
Main objective of the problem is to maximize profit of the company, that produces milk made products and minimize shipping cost of these products to supply at different stores in the city. The main objective is achieve by using linear programming optimization methods.
EXACT PROBLEM DEFINITION:
A company produces milk made products such as, Cream, Skim milk, Full Cream Milk, butter and ghee. The company uses 3000000 liters of milk monthly for producing milk made goods. From 3000000 liters of milk company uses 25% of milk for producing cream and skim milk, 25% for producing Full Cream milk, 25% for producing butter and 25% for ghee. According to company policies, company produces only 500 gram pack of cream, 1 liter pack of skim milk, 1 liter pack of full cream milk, 500 gram pack of butter and 1 liter pack of ghee.
750000 liters of milk is 25% of 3000000 liters. From 750000 liters 30% of milk use to extract cream and remaining 70% sales as skim milk. Company gets approximately 37500 liters of cream 60,000 liters of skim milk. From this company may produce at most 75000 packs of cream and at most 525000 packs of skim milk.
From 750000 liters of milk no more than 750000 packs of Full Cream Milk are produced. And from 750000 liters of milk company get 187500 gram of butter, the company cannot produce more than 375000 packs of butter.
Company gets approximately 150000 liters of ghee of which company cannot produce more than 150000 packs of ghee.