Dr. V. D. Prasada Rao
Dr. V. Ramachandra Raju
Dr. K. V. Subbaiah
Prof. P. V. Kumar Raju
Abstract
The main thrust of this work is to determine the best product mix in a paper industry by using Branch and Bound (B&B) paradigm of Integer Programming. The objective in conducting this case study is to earn higher profits for the same work and resources. The company is producing mainly two kinds of paper, viz., medium GSM (Grams per Square Metre) paper and higher GSM paper. This product mix problem can be formulated as a Linear Programming Problem (LPP) and solved by simplex method. But in the present case an integer solution is apt. If the solution obtained by LPP is rounded off, then there will be the violation of some of the problem constraints. So the problem is solved by B&B paradigm of Integer Programming. The company at present makes a profit of about Rs 3.3 lakhs/day. By adopting the proposed optimization methodology, the company makes a profit of Rs 4.76 lakhs/day, i.e., there is an increase in profit of about 30%.
Keywords- Product mix, Branch and bound paradigm, Integer programming.