Kamdhenu Dairy Case free essay sample

Case Analysis: â€Å"Kamdhenu Dairy† Decision Analysis I PGP1 Section B Group 4 Group Members AMARENDRA SAHOO PGP2011533 BHAWNA GOKANI PGP2011595 CHATARKAR ANURAG MAHADE PGP2011600 C. LALRUATSANGA 2011FPM06 RUPSA CHAKRAVARTY PGP2011837 SAARANG K. MEHTA PGP2011841 UTKARSH SINGH PGP2011923 Case Analysis – Kamdhenu Dairy (A) Decision Variables Let x1, x2, x3, x4, x5, x6, x7, x8, x9, x10, x11, x12 be the 12 combinations of Main and By-Products as given in the table. Table 1: Decision Variables Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 Product Mix (Variables) FA Milk + Butter (x1) FA Milk + Ghee (x2) SMP + Butter (x3) SMP + Ghee (x4) WMP + Butter (x5) WMP + Ghee (x6) Baby Food + Butter (x7) Baby Food + Ghee (x8) Cheese + Butter (x9) Cheese + Ghee (x10) Std Milk + Butter (x11) Std Milk + ghee (x12) In this case our Objective is to maximize the Contribution (Z) as given in the table Z = Total Revenue – Total Direct Cost Total Direct Cost = Milk Cost + Processing and Packaging Cost Total Revenue = Revenue from Main Product + Revenue from By- product Revenue from Main Product = Revenue per unit Main Product (from Exhibit 3) * Quantity of Main Product Revenue from By-Product = Revenue per unit By-Product * Quantity of By- Product Since Ghee are produced from Butter churns we will have to convert the Ghee into Corresponding Butter Units so that constraint for Butter is taken into Consideration. We will write a custom essay sample on Kamdhenu Dairy Case or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Question 2. a Case 1: Summer without contract Table 2: Constraints are as given in the following table Constraints Limiting values F. A Milk Butter Constraint Total SMP Total WMP SMP (x3)*813 + SMP from (x4)*813 +WMP (x5)*1179 + WMP(x6)*1179