VBK Fibreo Tech Pvt. Ltd: product mix dilemma

Abstract

Subject area Operations Research and Operation Management. Study level/applicability Undergraduate/MBA/Postgraduate. Learning outcomes The case depicts an opportunity for students to be exposed to optimization techniques using linear programming (LP). This case intends to: generate the LP model (identification of objective function and constraints); apply MS-Excel solver to arrive at an optimal solution; analyse manufacturing scenarios; and plan decision dependencies. Case overview/synopsis VBK Fibreo Tech Industries was a manufacturer of fibre reinforced plastic (FRP) products for industrial and domestic applications. Despite being a new entrant, it managed to exhibit great performance and attract a loyal base of customers. This case brings to light the problem that the company was facing that is demand exceeding capacity. The protagonist of the case Madhav, the Production Manager, was tasked to solve the problem of “product mix”. He was in a dilemma on how to fulfill customer orders while minimizing losses for his company. He knew that while losses were inevitable in the current scenario, they could be minimized with appropriate planning. Students are expected to use data and facts from the case and exhibit to formulate LP, by identifying the objective function and the constraints. They are also encouraged to use MS-Excel solver to find the optimal product mix and understand the decision dependencies. Complexity academic level This case can be used to teach LP in an undergraduate/postgraduate-level course on operations research. Students are exposed to the creation of a mathematical model for optimization and along with devising the implementation plan. Supplementary materials Teaching notes are available for educators only. Subject code CSS 9: Operations and logistics.