Implementing Linear Programming in a Textile Unit: Some Problems and a Solution

Cotton textiles is a very important industry for India. It represents 20% of the industrial production, 11% of the total exports, and employs 20% of the total labor force in the industrial sector. In recent years, the gross profit margins of textile units have dwindled to 7% of sales. Since the industry is old, 1.4% of sales turnover (20% of gross profit) is being reinvested in modernization. To combat eroding profits a typical unit is now faced with the problem of controlling costs, improving contribution by defining a suitable product mix, and choosing the right areas for modernization and capacity expansion. In spite of widespread realization of the potential of using linear programming (LP) for product mix, there are hardly any textile units which use the LP on a continuing basis. In the developed countries it may be that most of the time a unit can make more than it can sell and the value of LP dwindles. In developing countries, demand is forever growing and outstrips supplies. There are crippling power shortages requiring that a production plan be made which uses limited production resources optimally. In this paper we discuss the impediments to the use of LP in textiles, and describe how a software package was designed to facilitate the LP formulation and its implementation in a textile mill.