Mangalmay Journal of Management & Technology
  • Year: 2012
  • Volume: 6
  • Issue: 2

A study of profit maximisation of private and public sector cotton textile spinning mills in A. P. through linear programming technique

  • Author:
  • P. Niranjan Reddy1, D. Srinivasulu Reddy2, B. Bhagavan Reddy3
  • Total Page Count: 18
  • Page Number: 42 to 59

1Dept. of Management Studies, Rayalaseema Institute of Information & Management Sciences, Tirupati-517501

2Research Scholar, Dept. of ECE, JNTU, Ananthapur -515002

3HOD of Commerce, Sri Venkateswara University, Tirupati -517502

Online published on 13 February, 2013.

Abstract

The Cotton textile industry meets varied needs of public in the country. This industry produces such goods which meet the requirements of public. On the other hand, it has to produce the output at minimum cost so as to serve the consumers better and survive in the present day competitive world. In view of this, the sample spinning mills should employ resources to produce the given output at the least cost. The linear programming technique suggests that the select private sector cotton textile spinning mill should produce 27sK, 38sK, 40sC and 64sC. Similarly, the public sector cotton textile spinning mill should produce 42sK and 60sK only. The duality analysis infers that it should reduce unused working hours whose shadow prices are zero before shortage is experienced. The sensitivity analysis shows either by increasing or reducing the profit contribution of basic variables within the levels, maximum profit contribution cannot be changed. The select spinning mills should choose the optimal product mix by following the simplex method of Linear Programming Technique.