Case StudyProfit Maximization for Puff ShoesIntroductionCompany BackgroundPuff Shoes is a small business which falls under MSME or Micro, Small and Medium Enterprises and deals with production of shoes under its own brand “Puff” and as a third party. party supplies manufacturers for other leading brands through outsourcing of manufacturing to major shoe brands. Its turnover is around INR 2.78 Cr. Since commencing its operations in 1996, Puff Shoes has grown impressively to become a renowned footwear manufacturer in the Delhi (India) region, where the factory and office are located. Puff Shoes is accredited for processing orders from international shoe brands such as Nike and Fila. It specializes in the manufacturing of sports shoes (runners) and sneakers. Although they initially only produced 4 sizes of shoes (i.e. sizes 4, 5, 6 and 7), since 2001 Puff Shoes also began manufacturing shoes in sizes 8, 9, 10 and 11. Factory Information Number of Employees: 10-15 (on contract basis) Number of Machines: 3 Contract Manufacturing: Buyer's Tag Offered Location: Delhi Suppliers: All over India Sellers: All over India IndiaProduct InformationAs mentioned earlier, although the factory had started with the production of only 4 sizes of shoes, it was currently manufacturing 8 sizes ranging from size 4 to 11. Shoe sizes were broadly classified under two headings: small size and large size. The “Small” size range encompassed shoes ranging from 4 to 7, i.e. sizes 4, 5, 6 and 7. while the “Large” size range included the rest, i.e. i.e. sizes 8, 9, 10 and 11. The shoes created for these two size ranges had their own price differentials and...... middle of paper.... ..consolidated table, it is turns out that Sports Design shoes are expected to be more profitable at Rs 29 lacs than Sneekers, which stood at Rs 21 lacs. From the consolidated table, it is evident that size 11 is expected to be more profitable than other sizes with a profit of around Rs 10 lacs. With the proposed schedule, each month's demand can be met. As of December 2014, demand can be met even if machine 3 is not used to its full capacity. Total profits for the year 2014 are expected to exceed half a crore. The total demand for the year 2014 is expected to be around 5 lakhs. It turns out that the profit/shoe is expected to be Rs. capacity and maximum number of working hours per day..