# Kamdhenu Dairy Case

Topics: Milk, Butter, BMW Sports Activity Series Pages: 1 (274 words) Published: August 27, 2011
Case Analysis: “Kamdhenu Dairy”
Decision Analysis - I PGP1 Section B Group 4

Group Members
AMARENDRA SAHOO PGP2011533 BHAWNA GOKANI PGP2011595 CHATARKAR ANURAG MAHADE PGP2011600 C.LALRUATSANGA 2011FPM06 RUPSA CHAKRAVARTY PGP2011837 SAARANG K. MEHTA PGP2011841 UTKARSH SINGH PGP2011923

Case Analysis – Kamdhenu Dairy (A)
Decision Variables Let 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. 1 2 3 4 5 6 7 8 9 10 11 12 Product Mix (Variables) FA Milk + Butter (x1) FA Milk + Ghee (x2) SMP + Butter (x3) SMP + Ghee (x4) WMP + Butter (x5) WMP + Ghee (x6) Baby Food + Butter (x7) Baby Food + Ghee (x8) Cheese + Butter (x9) Cheese + Ghee (x10) Std Milk + Butter (x11) Std Milk + ghee (x12)

In this case our Objective is to maximize the Contribution (Z) as given in the table Z = 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- Product Since Ghee are produced from Butter churns we will have to convert the Ghee into Corresponding Butter Units so that constraint for Butter is taken into Consideration. Question 2.a Case 1: Summer without contract

Table 2: Constraints are as given in the following table
Constraints Limiting values F.A Milk Butter Constraint Total SMP Total WMP SMP (x3)*813 + SMP from (x4)*813 +WMP (x5)*1179 + WMP(x6)*1179