A Hybrid FLP-AHP Approach for Optimal Product Mix in Pulp and Paper Industry

Meenu Singh, Millie Pant

Abstract: Pulp and Paper Industries (PPI) manufactures a wide range of papers based on three different GSM (Grams/sq. meter). i.e., lower GSM, middle GSM and higher GSM. In order to maximize the profit, the PPI must efficiently utilize its available resources thereby producing optimal units of three different GSMs. Such problems lie under the category of product mix problems and forms an important part of production planning for every process industry like paper mill. In the present study, this problem is represented as a Fuzzy Linear Programming (FLP) model, to include the inherent vagueness and uncertainties. The solutions obtained through FLP are further refined with the help of AHP (Analytical Hierarchy Process) to determine the most profitable solution. Results indicate that ranking results obtained by integrating AHP into FLP may help in providing a better guidance to the Decision Maker (DM) for determining an optimal product mix.