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Simplex Method Case Study

The document outlines a profit maximization strategy for 'Bhavya Graphics', a small printing business. By analyzing product profitability and constraints related to time and raw materials, the optimal production plan suggests focusing on T-Shirts and Mugs, resulting in a maximum profit of ₹5,500. The Simplex Method is recommended to efficiently allocate resources and enhance production planning.

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vedsheth4
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6 views7 pages

Simplex Method Case Study

The document outlines a profit maximization strategy for 'Bhavya Graphics', a small printing business. By analyzing product profitability and constraints related to time and raw materials, the optimal production plan suggests focusing on T-Shirts and Mugs, resulting in a maximum profit of ₹5,500. The Simplex Method is recommended to efficiently allocate resources and enhance production planning.

Uploaded by

vedsheth4
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Profit Idea for "Bhavya Graphics"

1. Introduction
I visited "Bhavya Graphics", a printing and customization
shop. It is a small business that sells customized products like
T-shirts, Mugs, and Keychains.

2. Data Collection
I asked the owner simple questions to collect the data.

Q1: Me: "Which are your top 3 selling products?"


Owner: "My top 3 products are:
1. T-Shirt (x₁)
2. Mug (x₂)
3. Keychain (x₃)

Q2: Me: "How much profit do you make on one unit?"


Owner: "After deducting material cost:

1
• T-Shirt: Profit is ₹50.
• Mug: Profit is ₹35.
• Keychain: Profit is ₹15."

Q3: Me: "Why don’t you only produce T-Shirts since they
give highest profit?"
Owner: "I cannot. I have two main problems (constraints):
1. Working Time Limit:
I work from 6 PM to 12 PM only.
So I have 6 hours = 360 minutes.
2. Raw Material Limit (Ink RGB):
I have limited RGB ink for printing."

Q4: Me: "How much time and ink does each product
require?"
Owner: "Here is the list:
• T-Shirt: 1 minute, 4 units ink
• Mug: 4 minutes, 2 units ink
• Keychain: 1 minute, 1 unit ink"
Total Ink Available = 400 units

2
Decision Variables:
• x₁ = Number of T-Shirts
• x₂ = Number of Mugs
• x₃ = Number of Keychains

Objective (Maximize Profit):


Max Z = 50x₁ + 35x₂ + 15x₃

Constraints (Limits):
1. Time Limit:
1x₁ + 4x₂ + 1x₃ ≤ 360
2. Ink Limit:
4x₁ + 2x₂ + 1x₃ ≤ 400
3. Positive Logic:
x₁, x₂, x₃ ≥ 0

We convert the ≤ inequalities into equations by adding slack


variables (s1, s2, s3) with a coefficient of 0 in the objective
function.
Objective Function:
Max Z = 50x1 + 35x2 + 15x3 + 0s1 + 0s2 + 0s3

3
Constraints:
1x1 + 4x2 + 1x3 + 1s1 = 360
2x1 + 3x2 + 1x3 + 1s2 = 300
4x1 + 2x2 + 1x3 + 1s3 = 400

The solution is optimal because all Cj − Zj ≤ 0.


x1 = 75
x2 = 50
x3 = 0
• T-Shirts (x1): Make 75 Units
• Mugs (x2): Make 50 Units
• Keychains (x3): Make 0 Units

4
• Profit from T-Shirts: 75 × 50 = ₹3,750
• Profit from Mugs: 50 × 35 = ₹1,750
• Profit from Keychains: 0

Maximum Profit (Z) = 5,500


Note: Since the Cj − Zj value for the non-basic variable x3 is
exactly 0, this indicates the existence of an alternative
optimal solution.

Solved by solver

5
6
By applying the Simplex Method, Bhavya Graphics can
maximize profit by focusing mainly on T-Shirts and Mugs
while avoiding production of Keychains under the given
constraints.

This method helps the business owner utilize limited


resources such as time and materials efficiently and supports
better production planning and decision-making.

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