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Profit Maximization in a Product Mix Bakery Using Linear Programming Technique

Received: 10 May 2019     Accepted: 13 January 2020     Published: 6 March 2020
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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.

Published in Journal of Investment and Management (Volume 9, Issue 1)
DOI 10.11648/j.jim.20200901.14
Page(s) 27-30
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Linear Programming, Optimization Problem, Simplex Method, Linear Programming Solver

References
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[4] Balogun, O., Jolayemi, E., Akingbade, T., & Muazu. (2012). Use Linear Programming for Optimal Production In A Production Line In Coca-cola Bottling Company, Ilorin. International Journal of Engineering Research and Application, 2 (5), 2004-2007.
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[7] Fagoyinbo, I., Akinbo, R., & Ajibode, I. (2011). Maximisation of Profits In Manufacturing Industries Using Linear Programming Technique. Meditteranean Journal of Social Science, 7 (3), 97-105.
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[9] Hazar, J., & Render, J. (2004). Operation Management: Process and Value Chain. New Jersey: Prentice Hall.
[10] Kourosh, R., Farhang, K., & Reza, J. (2013). Using Linear Programming In Solving The Problem of Services Company's Cost. Singaporean Journal of Business Economics and Management, 4 (2), 93-104.
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[13] Yahya, W. (2004). Determination of Optimum Product Mix at Minimum Raw Material Cost Using Linear Programming. Nigeria Journal of Pure and Applied Sciences, 19 (2), 1712-1721. ******
[14] Raimi O. A, & Adedayo, O. C. (2017). Application of linear programming techniques on bread production optimization in Rufus Giwa Polytechnic Ondo State. American Journal of Operations Management and Information Systems, 2 (1), 32 – 36.
[15] Ibitoye O, Atoyebi K. O., Genevieve K., & Kadiri K. (2015). Entrepreneur decision making process and application of linear programming techniques. European Journal of Business, Economics and Accounting, 3 (5), 1 – 5.
[16] Adebiyi S. O., Amole B. B., & Soils I. O. (2014). Linear Optimization techniques for production mix of paints production in Nigeria. AUDCE, 10 (1), 181 – 190.
[17] Oladejo, N. K, Abolarinwa, A, Salary, S. O & Lukman, A, F. (2019). Optimization principle and its application in optimizing landmark university bakery production using linear programming. International Journal of Civil Engineering and Technology, 10 (2), 183 – 190.
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  • APA Style

    Kayode Olakunle Oluwaseyi, Atsegameh Elizabeth, Omole Ezekiel Olaoluwa. (2020). Profit Maximization in a Product Mix Bakery Using Linear Programming Technique. Journal of Investment and Management, 9(1), 27-30. https://doi.org/10.11648/j.jim.20200901.14

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    ACS Style

    Kayode Olakunle Oluwaseyi; Atsegameh Elizabeth; Omole Ezekiel Olaoluwa. Profit Maximization in a Product Mix Bakery Using Linear Programming Technique. J. Invest. Manag. 2020, 9(1), 27-30. doi: 10.11648/j.jim.20200901.14

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    AMA Style

    Kayode Olakunle Oluwaseyi, Atsegameh Elizabeth, Omole Ezekiel Olaoluwa. Profit Maximization in a Product Mix Bakery Using Linear Programming Technique. J Invest Manag. 2020;9(1):27-30. doi: 10.11648/j.jim.20200901.14

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  • @article{10.11648/j.jim.20200901.14,
      author = {Kayode Olakunle Oluwaseyi and Atsegameh Elizabeth and Omole Ezekiel Olaoluwa},
      title = {Profit Maximization in a Product Mix Bakery Using Linear Programming Technique},
      journal = {Journal of Investment and Management},
      volume = {9},
      number = {1},
      pages = {27-30},
      doi = {10.11648/j.jim.20200901.14},
      url = {https://doi.org/10.11648/j.jim.20200901.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20200901.14},
      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.},
     year = {2020}
    }
    

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    T1  - Profit Maximization in a Product Mix Bakery Using Linear Programming Technique
    AU  - Kayode Olakunle Oluwaseyi
    AU  - Atsegameh Elizabeth
    AU  - Omole Ezekiel Olaoluwa
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    N1  - https://doi.org/10.11648/j.jim.20200901.14
    DO  - 10.11648/j.jim.20200901.14
    T2  - Journal of Investment and Management
    JF  - Journal of Investment and Management
    JO  - Journal of Investment and Management
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    UR  - https://doi.org/10.11648/j.jim.20200901.14
    AB  - 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.
    VL  - 9
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    ER  - 

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Author Information
  • Department of Business Administration, University of Benin, Benin City, Nigeria

  • Department of Business Administration, University of Benin, Benin City, Nigeria

  • Department of Mathematics & Statistics, Joseph Ayo Babalola University, Ikeji-Arakeji, Osun State, Nigeria

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