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KAMDHENU(1)

# KAMDHENU(1)

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Published by: Anurag Chatarkar on Aug 27, 2011

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07/08/2013

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Case Analysis: “Kamdhenu Dairy”
Decision Analysis - IPGP1 Section BGroup 4
Group Members
AMARENDRA SAHOO PGP2011533BHAWNA GOKANI PGP2011595CHATARKAR ANURAG MAHADE PGP2011600C.LALRUATSANGA 2011FPM06RUPSA CHAKRAVARTY PGP2011837SAARANG K. MEHTA PGP2011841UTKARSH SINGH PGP2011923

Case Analysis – Kamdhenu Dairy (A)
Decision VariablesLet 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.Product Mix (Variables)
1FA Milk + Butter (x1)2FA Milk + Ghee (x2)3SMP + Butter (x3)4SMP + Ghee (x4)5WMP + Butter (x5)6WMP + Ghee (x6)7Baby Food + Butter (x7)8Baby Food + Ghee (x8)9Cheese + Butter (x9)10Cheese + Ghee (x10)11Std Milk + Butter (x11)12Std Milk + ghee (x12)
In this case our Objective is to
maximize the Contribution (Z)
as given in the tableZ = 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- ProductSince Ghee are produced from Butter churns we will have to convert the Ghee into Corresponding Butter Units so that constraint for Butter istaken into Consideration.
Question 2.aCase 1: Summer without contract
Table 2: Constraints are as given in the following table

ConstraintsLimitingvalues
F.A Milk 0Butter Constraint 10Total SMP 7.38Total WMP 5.09SMP (x3)*813 + SMP from (x4)*813 +WMP(x5)*1179 + WMP(x6)*1179<=6000 6000Ghee Constraints 2.5Butter + Ghee<10 10X7+X8<5.36(Baby Food) 5.36X9+X10<1.83(Cheese) 1.83Total raw milk 11.9

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