Abstract
Linear Programming is one of the optimization techniques in finding solutions to managerial decisions making. Linear Programming is a widely used mathematical modelling technique designed to help managers in planning and decisions making relative to resource allocation. This study applied linear programming technique to decision making problem in university of Benin Bakery, Benin city, Edo state, Nigeria, and intended to determine the quantity of Bread that the firm should produce in a day to maximize profit, subject to constraints in the production process. Data on quantity of major raw material used in production of large, medium and small size bread per day were collected from the extract of the financial record of the bakery. The problem was formulated in mathematical term and solved using computer software known as Linear Programming Solver (LIPS). The solution obtained from a single iteration showed that 667 units of extra- large bread should be produced daily for the firm to achieve a maximum daily profit of #100,000. It is therefore recommended that the firm should concentrate more on production of extra- large bread to obtain maximum profit of #100,000 per day.
Highlights
Decision making in today’s social and business environment has become a complex task
The main purpose of this study is to demonstrate the pragmatic use of linear programming methods in a manufacturing firm, and to effectively estimate which of the organization’s products should be given more attention or produce more in other to maximize profit
This study has been able to analyses the current activity of bread production in Uniben Bakery adopting Linear Programming Technique
Summary
Decision making in today’s social and business environment has become a complex task. The decision maker often attempts to attain a set of multiple objectives in an environment of conflicting interests, incomplete information, limited resources, and limited analytic ability ([11]). Materials, labour, competitive pressures, energy consumption and so many different viewpoint greatly increase the difficulty of managerial decision – making. Knowledge and technology are changing rapidly, the new problems with little or no precedents continually rise ([12]). To effectively address the problem of optimization of the limited resources in this advancing global age, decision makers cannot afford to make decision by applying their personal experiences, guess work or intuition, because the consequences of wrong decisions are serious and costly. Entering the wrong markets, producing the wrong products, providing inappropriate services will have bad consequence on the organizations ([6])
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