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.

Competition among manufacturers in developing countries is remarkably vigorous today due to trade liberalization. Lean manufacturing, outsourcing, business partnership, optimization, etc. have become the key strategies to improve supply chain profitability. To improve quality and increase revenues, the company needs to minimize wastage of their resources by proper planning with their suppliers, distributors and retailers and by using optimization techniques for their resources. (Thakkar et al., 2008 and 2012). Uncertainties are affecting large and small/medium companies across the globe. It is observed that Micro, Small and Medium Enterprises (MSMEs) are more vulnerable to risks and uncertainties as compared to large enterprises as they have feeble control over critical supply chain issues. Multinational companies are outsourcing their business to India to exploit the situation of low cost manufacturing, unexplored markets and good quality IT solutions (Vijayvargy and Agarwal, 2013). On the one side, these practices are opening new opportunities for Indian enterprises, but on the other side, India's MSMEs are facing problems of finance, skill, supply chain, low productivity and quality. Kerstem et al. (2007) proposed a model considering the theoretical and practical aspect of supply chain issues using an empirical method. These models require modifications to make them suitable.

Supply Chain Management Journal, Optimization, Resources, Supply Chain, Linear Programming, Micro, Small and Medium Enterprises (MSMEs), Integer Linear Programming (ILP), Small-Scale Industries, Agro and Rural Industries (SSI and ARI), India’s MSME.