Optimization of Cement Production: Maximizing Profits for Fauji Cement Company Limited under Resource and Environmental Constraints

Abstract

A long-time leader in the cement manufacturing industry, Fauji Cement Company Limited, headquartered in Rawalpindi, operates a cement plant in Fateh Jang, District Attock in the province of Punjab. The company produces a total of seven cement brands with an annual total production capacity of 3.6 million tons of cement. With the addition of Pamir Cement to the lineup, Fauji Cement now aims to determine the optimal production quantity of its top two selling cement brands i.e. Ordinary Portland Cement (OPC) and Pamir Cement, to maximize its total annual profits. The resources required to produce these brands of cement include Clinker, Gypsum, and Additive (Limestone). The composition of these resources for OPC cement is at least 90% Clinker and more than 5% Additive and 5% Gypsum each. The composition for Pamir Cement is 75% Clinker and no more than 20% Additive and 5% Gypsum each. Environmental Protection Agency (EPA) restricts FCCL to emit no more than 10,200 tons of CO2 per day for cement production. Total Carbon Emission per ton of Clinker = 0.921 Tons of CO2. As Pamir cement required 75% of clinker so it releases less amount of CO2 as a result we can produce these bags more in numbers to maximize overall profit of the company.