Page 223 -

DATA ENVELOPMENT ANALYSIS 203

The mill has two types of looms: dobbie and same time, determine how many metres of each
regular. The dobbie looms are more versatile and fabric must be purchased from another mill. Include
can be used for all five fabrics. The regular looms a discussion and analysis of the following items in
can produce only three of the fabrics. The mill has a your report.
total of 38 looms: 8 are dobbie and 30 are regular.
1 The final production schedule and loom
The rate of production for each fabric on each type
assignments for each fabric.
of loom is given in Table 4.19. The time required to
change over from producing one fabric to another is 2 The projected total contribution to profit.
negligible and does not have to be considered. 3 A discussion of the value of additional loom time
The Mill satisfies all demand with either its own (The mill is considering purchasing a ninth dobbie
fabric or fabric purchased from another mill. Fabrics loom. What is your estimate of the monthly profit
that cannot be woven at the Mill because of limited contribution of this additional loom? ).
loom capacity will be purchased from another mill. 4 A discussion of the objective coefficients ranges.
The purchase price of each fabric is also shown in
5 A discussion of how the objective of minimizing
Table 4.18.
total costs would provide a different model than
the objective of maximizing total profit
Managerial Report
contribution. (How would the interpretation of the
Develop a model that can be used to schedule objective coefficients ranges differ for these two
production for the Shimla Textile Mill, and at the models? ).

Table 4.18 Monthly Demand, Selling Price, Variable Cost and Purchase Price Data for
Shimla Textile Mill Fabrics
Selling Price Variable Cost Purchase Price
Fabric Demand (metres) (E/metre) (E/metre) (E/metre)

1 16 500 0.99 0.66 0.80
2 22 000 0.86 0.55 0.70
3 62 000 1.10 0.49 0.60
4 7 500 1.24 0.51 0.70
5 62 000 0.70 0.50 0.70

Table 4.19 Loom Production Rates for the Shimla Textile Mill
Loom Rate (metres/hour)

Fabric Dobbie Regular
1 4.63 —
2 4.63 —
3 5.23 5.23
4 5.23 5.23
5 4.17 4.17
Note: Fabrics 1 and 2 can be manufactured
only on the dobbie loom.

Copyright 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has
deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.