Kamdhenu Case
DECISION ANALYSIS
CASE STUDY
Kamdhenu Case
GROUP 5
Abhijeet Mahajan
Amit Vijay
Bishakha Majumdar
Gaurav Khatri
Sahil Sambyal
Sakshi Makkar
Vaibhav Rastogi
Introduction:
The Kamdhenu Dairy is a cooperative of the dairy farmers – located in Sanand, a small town in one of the western states of India. Set up with a goal to ensure a steady market and revenue for the small dairy farmers, the Kamdhenu Dairy supplies pasteurized milk to the State Government – in a fixed quantity (75000 litres/day), throughout the year. However, the production of milk has wide seasonal variations – with production of milk in winter being 250 % of that in summer. The additional milk is used for producing other milk products.
The problems before the KD are as follows: 1. Finding the optimum product mix. 2. Deciding if they should continue with the loss making products – cheese and baby food.
Question 1: Should Cheese be dropped from the product line ass suggested by Mr. Ramaswamy?
Answer: After the analysis, as is clearly visible from the value of the shadow price of the Cheese, it’s both positive and large than the values of other products. Hence, we should continue with the production of cheese. Microsoft Excel 14.0 Sensitivity Report | | | | | | Worksheet: [DA Kamdhenu.xlsx]Sheet2 | | | | | | Report Created: 8/26/2011 3:52:39 AM | | | | | | | | | | | | | | | | | | | | | | Variable Cells | | | | | | | | | Final | Reduced | Objective | Allowable | Allowable | | Cell | Name | Value | Cost | Coefficient | Increase | Decrease | | $B$18 | Solution x1 | 7.5957 | 0 | 503 | 407 | 55 | | $C$18 | Solution x2 | 0 | -55 | 448 | 55 | 1E+30 | | $D$18 | Solution x3 | 0 | -366 | 544 | 366 | 1E+30 | | $E$18 | Solution x4 | 0 | -555 | 355 | 555 | 1E+30 | | $F$18 | Solution x5 | 2.4743 | 0 | 910 | 923 | 45 | | $G$18 | Solution x6 | 0 | -165 | 745 | 165 | 1E+30 | | $H$18 | Solution x7 | 0 | -45 |
CASE STUDY
Kamdhenu Case
GROUP 5
Abhijeet Mahajan
Amit Vijay
Bishakha Majumdar
Gaurav Khatri
Sahil Sambyal
Sakshi Makkar
Vaibhav Rastogi
Introduction:
The Kamdhenu Dairy is a cooperative of the dairy farmers – located in Sanand, a small town in one of the western states of India. Set up with a goal to ensure a steady market and revenue for the small dairy farmers, the Kamdhenu Dairy supplies pasteurized milk to the State Government – in a fixed quantity (75000 litres/day), throughout the year. However, the production of milk has wide seasonal variations – with production of milk in winter being 250 % of that in summer. The additional milk is used for producing other milk products.
The problems before the KD are as follows: 1. Finding the optimum product mix. 2. Deciding if they should continue with the loss making products – cheese and baby food.
Question 1: Should Cheese be dropped from the product line ass suggested by Mr. Ramaswamy?
Answer: After the analysis, as is clearly visible from the value of the shadow price of the Cheese, it’s both positive and large than the values of other products. Hence, we should continue with the production of cheese. Microsoft Excel 14.0 Sensitivity Report | | | | | | Worksheet: [DA Kamdhenu.xlsx]Sheet2 | | | | | | Report Created: 8/26/2011 3:52:39 AM | | | | | | | | | | | | | | | | | | | | | | Variable Cells | | | | | | | | | Final | Reduced | Objective | Allowable | Allowable | | Cell | Name | Value | Cost | Coefficient | Increase | Decrease | | $B$18 | Solution x1 | 7.5957 | 0 | 503 | 407 | 55 | | $C$18 | Solution x2 | 0 | -55 | 448 | 55 | 1E+30 | | $D$18 | Solution x3 | 0 | -366 | 544 | 366 | 1E+30 | | $E$18 | Solution x4 | 0 | -555 | 355 | 555 | 1E+30 | | $F$18 | Solution x5 | 2.4743 | 0 | 910 | 923 | 45 | | $G$18 | Solution x6 | 0 | -165 | 745 | 165 | 1E+30 | | $H$18 | Solution x7 | 0 | -45 |