OPTIMIZATION OF A PRODUCT MIX IN A PAPER MILL – A CASE STUDY

Abstract

The main thrust of the study is to determine the best product mix in M/s Delta Paper Mills, Vendra by using
one of the Optimization Techniques i.e. Linear Programming Problem. The company is producing mainly three kinds of
papers based on GSM (Grams/sq. meter) namely lower GSM, medium GSM and Higher GSM. Presently the company is
accepting orders at random, without any specific regard to the above aspect of optimization. The reason for carrying out
this analysis is that the company would get lesser returns for the same work if it does not adhere to any systematic
procedure, which is the case now. The objective of carrying out the case study is to make higher profits for the same
work and from the same resources; further to reduce the unnecessary wastage of time & materials. About 80% of the net
profit of the company is from the medium GSM Paper and most of the remaining from lower GSM Paper. The best
product mix is determined using Linear Programming Problem (LPP) and estimated that the total profit of the company
is increased by 30%.