Essay about Profit Mazimization for Puff Shoes

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Case Study

Profit Maximization
Puff Shoes

Company Background
Puff shoes is a small enterprise which comes under the MSMEs or the Micro, Small and Medium Enterprises and deals with footwear production under its own ‘Puff’ brand and as third party manufacturers for other prominent brands through the outsourcing of manufacturing by major footwear brands. It has a turnover of about INR 2.78 Cr. Since the commencement of Operations in 1996, Puff shoes has progressed impressively to becoming a reputed footwear manufacturer in the Delhi(India) region where the factory and office are located. Puff shoes is accredited with having processed orders of international footwear brands such as Nike and Fila. It specializes …show more content…

Executive Summary

Main objective of this case study is to optimize the functioning of the Puff Shoes manufacturing unit with the objective of maximizing profit through the optimal order and resource allocation to the three production units (machines) while ensuring that the demand is met in a timely manner.

The scope of the case study is limited to the manufacturing unit of Puff Shoes in Delhi which contains 3 machines for the production of footwear of various sizes.
Problem Description: It is focused on the aspect of creating a model that would allow for the optimal allocation of resources to each of the 3 machines in order to maximize profit in the long run. The model also hopes to ensure that maximum order deadlines are met in a timely yet profitable manner without compromising on the quality of the product.
Tool Used :-Excel Solver is used for modeling Linear Programming Problem and solving them Data Analysis

The following data was collected from the company:

Number of machines = 3

NOTE: In this case study, I have named the machines Machine 1, Machine 2 and Machine 3, where Machine 1 has the highest capacity, followed by Machine 2 and Machine 3.

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