Optimization of Resources in Supply Chain by Linear Programming : A Case of India's MSME

In volatile market conditions, companies are struggling for survival and growth. Firms are adopting strategies like outsourcing, optimization of operations, partnership, just in time and inventory reduction to cut the cost to enhance market share. These strategies are improving supply chain efficiencies and effectiveness. Largescale industries are implementing the strategies at a satisfactory level, but Micro, Small and Medium Enterprises (MSMEs) are still struggling due to lack of industrial skill, visibility, financial support and control over business issues. Therefore, special attention is required to understand the problem of MSMEs and to develop strategies to manage business. The paper provides an idea about the optimization of one actor in supply chain. It also compares the present manufacturing scenario with future changes possible in this direction in small-scale industries (here tiffin manufacturing firm) through optimization of the production process of industry. Firstly, the current situation is analyzed using Integer Linear Programming (ILP) model and sensitivity analysis is done to track the changes. The paper presents an overview and guidance for MSMEs in the area of productivity improvement. It also presents a SWOT analysis of MSMEs