PROJECT REPORT

NUMERICAL METHODS FOR ENGINEER

COEB223
SEM 2 2015/2016
DATE OF SUBMISSION: FRIDAY, 29thJANUARY 2016

NAME

STUDENT ID

SECTION

ALIA NADZIRAH BT ROSLI

EP 094597

1B

KHAIRUNAFIQAH BT ABU HAIYAN

EP 093609

1B

MARIA SAIMIRA BT SAIMI

ME 094963

1A

NUR AFIQAH BT FAUZAN

ME 094983

1A

SITI AQILAH BT SAMSUDDIN

ME 094987

1A

LECTURER

MISS KUAN TZE MEI

GROUP NAME

EULER

TABLE OF CONTENT

CONTENT

Team Member

Introduction

Numerical Methods

Procedure

Result and Analysis

Conclusion

Reference

Appendices

PAGE

INTRODUCTION
This project has been given for us to apply the numerical method in
real world as we have been taught in class. Basically, the task given based
on real life situation where we work as a group in Diapers Company and
using the numerical method we learn, we have to fulfill the task to know
whether which production plan was the best for us to use to get the
maximum profit per month. The problem/task has been identified and we
come out with several footstep we take for solving this problem.

PROBLEM STATEMENT

As the task given, we as a group (EULER) is expected to be a team in

R&D department of a factory that manufacturers diaper. The project
demands for a good production plan for Diapers Company, the company had
already come out with the design of three different products which are
differentiated by the size. Each of the models requires different amount of
material to manufacture. However, there was several limitation that we have
to look out for this production :
i)
Limitation of funding
ii)
Maximize the profit
iii)
The pollution cannot exceed 3,500 per unit pollution

OBJECTIVES

Objective for this project is that we can produce a well-good production

plan with several information :
i)
ii)
iii)

Size of the production facilities

Amount of each type of diapers
The selling price of diapers and estimation on number of the diapers

iv)
v)
vi)

that can be sold

Estimation of revenue and net profit per month
Payback on machine investment
Minimize the pollution

LITERATURE VIEW

Numerical method is the study of computing materials data. The

numerical method is the method that designed for the constructive solution
of mathematical problems requiring particular numerical results. It is a
complete and unambiguous set of procedures for the solution of a problem
together with computable error estimates. This course provides students with
the basic algorithms in numerical methods which allow us to solve practical
engineering problems.
For this project, optimization was done using the Simplex method in
order to find the maximum number of production of diapers by substituting
the collection of data into the Excel Solver. From the calculation using
Simplex Method, it can be concluded that only the production of size L can be
produced. From the data of number of diaper production obtained, the
calculation on estimation of expenses and net profit per month including the
minimization of pollution can be done using the given equation in the project
description.
The determination of size and the number of worker was done by
considering the minimal pollution that will be generated. The number of
diaper per bundle and the price were set by referring to the market response
information. We estimate that 99.9% from the total bundle of diapers can be
sold suit the price allocated for the size. The payment on the machines
installment was estimated to be settled within 5 years.
Lastly, the net profit of five production lines was obtained with
maximum number of 20 workers for each production line.

PROCEDURE
In this project, our group must choose 3 different sizes of diapers which
give the highest profit. We must also consider several things like limitation of
the funding for one production line and the maximum profits that we can get.
Here are steps that we used to complete the calculation for all diapers:
1) Determination of size for diapers model
Three diapers model is selected by choosing the sizes of diapers which
are S, M, L, XL and XXL based on the lowest pollution that we
calculated and also based on the market response which their average
sales were above 90%.
2) Quantity of the worker and unit fabricated per month
In order to have good production plan, the high capacity of workers
need to be in consideration and also the units fabricated per month of
each diapers. The number of workers for production line is between 1520 workers. The working capacity is based on the ratio of the workers
to the maximum workers. We calculated the capacity and workers
needed by using the pollution equation and with that we can also
calculate the unit fabricated per month

3) Quantity per bundle and its price

Our diapers models quantity is determined by only one production
line. The selection on the numbers of diapers per bundle is considered
from estimation of 99.9% sold. From units fabricated per month that
have calculated, we can get to know how many bundles of diapers that
we can produced per month. From that, we can get the estimation of
sales based on the price per bundle of 99.9% sold. Some selections of
prices are chosen and only the one with the highest sale is selected.
4) Unit Material for each diaper
Some methods and calculation are made in finding the unit material for
each diaper: Simplex Method (Optimization) is used to solve the
problem.
5) Calculate Revenue, Expenses and Net Profit
For the revenue, some simple calculations are made with all the
information we get from above step. Revenue was calculated within
the production of diapers we can produce per month while the
expenses was calculate from all the item that we have to pay and net
profit was calculated by subtracting the revenue and expenses.

ANALYSIS AND DISCUSSION

1) Determination of size for diapers model
We have two considerations for the size selection which are based on
pollution and market response. Below is the data for the calculation.
I) Based on pollution.
Size S

75%

Unit fabricated per

day
3000

80%

3200

600

85%

3400

637.5

90%

3600

675

Capacity

Pollution
562.5

95%
100%

3800

712.5

4000
750
Table 1.1: Calculation result of pollution for size S

Size M

75%

Unit fabricated per

day
3225

80%

3440

968

85%

3655

1028.5

90%

3870

1089

95%

4085

1149.5

Capacity

100%

Pollution
907.5

4300
1210
Table 1.2: Calculation result of pollution for size M

Size L

75%

Unit fabricated per

day
3375

80%

3600

1360

85%

3825

1445

90%

4050

1530

95%

4275

1615

Capacity

100%

Pollution
1275

4500
1700
Table 1.3: Calculation result of pollution for size L

Size XL

75%

Unit fabricated per

day
750

80%

800

640

85%

850

680

90%

900

720

95%

950

760

Capacity

100%

Pollution
600

1000
800
Table 1.4: Calculation result of pollution for size XL

Size XXL

75%

Unit fabricated per

day
562.5

80%

600

700

85%

637.5

743.75

90%

675

787.5

95%

712.5

831.25

Capacity

100%

Pollution
656.25

750
875
Table 1.5: Calculation result of pollution for size XXL

II) Based on market response.

Table 1.6: Market Response

Size

Average pollution

Average sale (above

99%)

787.5

1270.5

1785

XL

840

XXL

918.75

Table 1.7: Average pollution and sale for each size

As we take the average sale that was above 99% for us to get the most
selling model for us to produce maximum profit as the main consideration for
the size selection, there are 4 sizes that selected for the first stage; S, M, L
and XL. Because we also considered the pollution, we intend to choose the
model that produce less pollution, so we choose size XL instead of size M
because size XL produce less pollution than size M, also the average sale of
size M is just slightly higher than size XL but we got more profit with less
pollution. The comparison between these two considerations was recorded in
table 1.7. So for the final result, the size that selected was S, L, and XL.

2) Quantity of Worker and Unit Fabricated/Month

To determine the number of worker and the unit of fabricated per month,
we take a high consideration to minimize the pollution and maximize the
production. Thus, we calculate the units of pollution that produced in a day
when we consider the numbers of workers are from 15 to 20 workers using
pollution equation as below:

Pollution

capacity

17.5units
+(units fabricated /day pollution generated /diaper)
5

Work
er

Capaci
ty (%)

Si
ze

Units
Fabricated/
Day

Polluti
on /
Diaper

Pollution
Generated/
Day

Total
Pollution/
Day

15

75

16

80

17

85

18

90

19

95

20

100

S
L
XL
S
L
XL
S
L
XL
S
L
XL
S
L
XL
S
L
XL

3 000
3 375
750
3 200
3 600
800
3 400
3825
850
3 600
4 050
900
3 800
4 275
950
4 000
4 500
1 000

0.1
0.3
0.45
0.1
0.3
0.45
0.1
0.3
0.45
0.1
0.3
0.45
0.1
0.3
0.45
0.1
0.3
0.45

562.5
1 275
600
600
1 360
640
637.5
1 445
680
675
1 530
720
712.5
1 615
760
750
1 700
800

2 437.5

2 600

2 762.5

2 925

3 087.5

3 250

As the total pollution can be considerable for all number of worker, so

we decided to hire 20 workers with full capacity to maximize the units of
fabricated diapers per month in order to produce more profit for the payment
of fine for the pollution generated. For more confirmation, we try to make
new equation base on pollution equation and we come out with equation
below :
(x 17.5/(5 ))+(Unit Fabricated per day x Pollution generated by each unit diaper)3,500

x : percentage of capacity
As the capacity was associated with number of worker as equation below :
capacity=(number of worker /20)100

So we can get, the number of worker by this method also and the result we
get was 100% for capacity and it associated with 20 workers.

3) Quantity per Bundle and Its Price

The selection on the numbers of diapers per bundle is considered from
possible percentage of 99.9 % diaper sold for each size of diaper. The prices

for each numbers of diapers per bundle are set by considering the market
response with estimation that 99.9% of the total product will be sold in
market.

Size

XL

Unit fabricated/month

120,000

Diapers/
Bundle

No of
bundle /
month

Price
(RM)

Sale
(RM)

24

5,000

20

99,995

36

3,333

27

89,901

48

2,500

31

77,422.
50

24

5,625

25

140,47
5

48

2,812

36

101,12
4

36

833

32

26,264

135,000

30,000

Thus, for the numbers of diapers per bundle and the price set for a bundle
for each size are selected based on the highest sale that can be produced
regarding to the estimation of 99.9% diaper sold. The selected number of
diapers per bundle and the price per bundle for each size has been
highlighted as above.

MATERIAL/ SIZE

L
3.28894

XL
1.483

AMOUNT

Non-Woven Material

S
3.74

Elastic Material

2.78334

2.47414

1.11333

15000

20000

2.7833

2.4741

1.1133

15000

Pulp

4.63334

4.11854

1.85333

25000

Glue

2.2167

Tissue

1.9704

8.8667

12000

4) Unit Material for each diaper

Table 4.1 : Average of each material for every size
For material part, we make ratio of each material for every size. The
total amounts of each material have been divided with (3 x 1 month). Then
to find the ratio, we divided the answer before with total amount of diapers
produced per month. After that, we recorded the result in table 4.1. The
equation use was :
( )/(3 30 ) u =
unit material/diaper
To resolve this problem, we use Optimization (Simplex Method) for us to
know the production of each size. The equation was formed according to
table above :

R = 0.83x + 1.04y + 0.89z is subjected to

4

3.7

x+

3.2889

y+

1.48

z <= 20000

2.78334 x +

2.47414 y +

1.11333 z <= 15000

2.78334 x +

2.47414 y +

1.11333 z <= 15000

4.63334 x +

4.11854 y +

1.85333 z <= 25000

2.21674 x +

1.97044 y +

8.86674 z <= 12000

As for the result, the data was recorded in table 3.2 below :
SIZE
PRODUCTION
(UNIT)

XL

60,630,558

Table 4.2 : The result gained from Simplex Method

As we observed the data gained, the only size that can produce was
size L with production of 60,630,558 units per month. From this method, we
also can estimate the revenue value that can we get from this production
plan. The revenue estimation that we get from this method was RM
63,055,780.11. This value then multiply with the sold percentage of diapers
to know the exact revenue value that should we get according to the sale
data in market response table. In the end, the final value that we get for
revenue estimation was RM 62,992,724.33.
After we get the total number of production (which is production of size
L), we can calculate the number of material used per month in this
production plan. The data was calculated and recorded in table 3.3 below :
Material

Total of Number Used

Price (RM)

Non-Woven Material

19,941

199,410.00

Elastic Material

15,000

225,000.00

Tissue

15,000

150,000.00

Pulp

24,970

624,250.00

Glue

11,947

59,735.00

TOTAL (RM)

1,258,395.00

Table 3.3 : Total number material used and its price

For total number of each material used, we can determine the price for each
material that we have to pay per month. The table above (table 3.3) also
included the price that we have to pay for each material and total amount of
material that we have to pay for a month was RM 1,258,395.00

5) Revenue , Expenses and Net Profit

For revenue, we calculated based on the result we get from the Simplex
method previously. It seems that the only model we can produce was size L,
so the revenue was counted for production of size L base on equation below :

. = 0/ /
Through this equation, it was calculate that we can produce 2,526,250
bundle per month. This value then will multiply with its price (RM25) and
99.9% sold. After that, we will get the revenue per month which is RM
63,093,675.00 per month.
Besides that, we will calculate the expenses of production to get the
net profit from this production. The expenses has 3 major things to consider
which was :

Production line (payback by installment for 5 years)

Workers salary per month
Clean up for pollution per month
Total price of material

The data calculated was recorded in table 5.1 below :

EXPENSES
Production Line
Workers Salary
Clean up payment
Price of material
TOTAL

AMOUNT (RM)
166,666.67
150,000.00
5,100,000.00
1,258,395.00
6,675,061.67

After that we can calculate our net profit per month by subtracting the
revenue with expenses as the following equation :
net profit=rev enueexpenses

Finally, the net profit per month we got for this production plan was RM
56,418,613.33 per month.
SAMPLE CALCULATION

Pollution for size L with 75% capacity

(75 17.55unit )+( 3375 0.3 units) =1275unit of pollution

Average pollution for size L

1275+1360+ 1445+ 1530+1615+1700
=1785
6

Total pollution per day for 3 size with 75% capacity

562.5+1275+600= 2437.5

Capacity by pollution equation

[( x 17.5/(5 ))+( 4000 x 0.1)]+[(x 17.5 /(5 ))+( 4500 x 0.3)]+[(x 17.5 /(5 ))+(1000 x 0.45)]350

=1.08 100% (20 worker)

Number of bundle per month with one production line and its selling
price for size S
120,000
=5,000 bundle
24
5,000 99.9 RM 20=RM 99,995

Ratio for unit material for non-woven material (size L)

20000
4
675000=3.2922
3 x 30

Material price for non-woven material

19,941units RM 10=RM 199,410

Revenue
. = / /le
= 60630558/24
= 2,526,273 bundle
No of bundle (SOLD) = No of bundle x %sold
= 2,526,273 x 99.9 %
= 2,523,747(estimation)

Sale = No of bundle (SOLD) x selling price

= 2,523,724 x RM25
= RM 63,093,675.00 per month

Production Line expenses

Total = RM 2,000,000 x 5 = RM10,000,000
Payback ( installment for 5 years ; 60 month) = 10,000,00/60
= ,.

Workers Salary
Total = 20 worker x 5 production line x RM1500 =

RM15,000

Clean up expenses for size L

Units of Pollution =

+ ( 4500 0.3 )=1700 unit

(100 % 17.5
5 )

Clean up = 1700 unit x RM 20 x 5 production line x 30 day= RM

5,100,000

Net Profit
net profit=

63,093,675 - 6,675,061.67 = RM 56,418,613.33

Percentage error of revenue

|63,093,67562,992,724.33|
63,093,675

100 =0.16

Based on the selected 20 people numbers of workers with full

capacity, 5 production line can produce 600,000 units of size S, 675,000
units of size L and 150,000 units of size XL per month. From this value of
unit fabrication per month, we can set the selling price for each diapers and
the estimation number of diapers that can be sold per month by considering
only one production line. The price for every bundle of each sizes and the

unit of diapers per bundle are set based on the estimation that 99.9% of the
total bundle can be sold with the selected price and unit of diapers per
bundle. Thus, we have allocated that the price for size S is RM 20 per
bundle, RM 25 per bundle for size L and RM 32 per bundle for size XL. Based
on the information of units of fabricate produced per month , the number of
diapers in a bundle, and the possible percentage of diaper sold, we can
estimate the number of diapers that can be sold for a month by considering
only one production line. The estimation on number of diapers that can be
sold in a month are 5,000 bundles of size S, 5625 bundles of size L, and 833
bundles of size XL.
The estimation on expenses regarding to the payback for the machine
installment in 5 years, working salary, payment of material to supplier and
fine of pollution for L diaper are totally sum up by RM 6,675,061.67. From
the profit cost of RM 63,093,675.00 of L diaper marketing, the net profit
obtained is estimated to be RM 56,418,613.33 per month.
After we observed all the information we get, the only model that we
can produce was size L with 60630558 units per month as we do the
Optimization (Simplex Method) on material. From that method also, we also
get the revenue estimation for our product. So the true error was calculated
to know how many percent the real value with estimation value by using
formula :

True value numerical value|

100
True value

The percentage error we get was 0.16% and it was slightly error so it was
acceptable.

CONCLUSION
The project was conducted to propose a good production plan to
maximize the profit and minimizing the pollution at the same time. All
calculation, assumption and calculation have been made to obtain the
highest profit with the given restriction referring to the information attached.
From the Simplex Method , it can be concluded that only size L
production can be marketed with the estimation that the company will gain

the profit cost of RM 63,093,675.00 per month for five production line.
Considering the expenses due to the payback for the machine installment in
5 years, working salary, payment of material to supplier and fine of pollution
for L diaper, the company will gain a net profit of RM 56,418,613.33 per
month.
As a conclusion, the objective of the project is achieved with only a
slightly percentage error of 0.16% between estimation and calculation value
for expenses so it was accepted.

REFERRENCE

Chapter 4. Constrained Optimization: Simplex Method.

http://www.computerworld.com/article/2487503/businessintelligence/how-to-solve-optimization-problems-with-excel-andsolver.html