Application of Linear Programming Technique for Optimal Production in Profit Maximization

Abstract

In this paper, we are concerned with applying linear programming technique to determine optimum product mix of Gusau Sweet Factory Limited to maximize profit. Data on the quantity of major raw materials used in the production of the three different sweets: Toffee. Lollipop and Candy, cost and selling prices and the profit of each product were collected from the extract of the financial record of the company. The problem was formulated as a linear programming problem (LPP) and solved using the revised simplex algorithm. The results show that Toffee and lollipop should be produced daily for the company to realize an optimum profit.