Optimal product quantity linear programming model for profit maximization in plastic small medium manufacturing firms
Department of Industrial and Production Engineering, Nnamdi Azikiwe University, Awka, Nigeria
Research Article
World Journal of Advanced Research and Reviews, 2024, 22(01), 850–856
Article DOI: 10.30574/wjarr.2024.22.1.1164
Publication history:
Received on 06 March 2024; revised on 15 April 2024; accepted on 18 April 2024
Abstract:
Planning production and maximizing profits can be difficult tasks for small and medium-sized manufacturing businesses (SMEs). Owing to their difficulties implementing the newest and most advanced Industry 4.0 technologies, small and medium-sized enterprises (SMEs) generally depend more on expert guidance. Thus this study focuses on the development of a Linear programming model for determining the optimum quantities of product in order to maximize profit profits in manufacturing Small medium enterprises. Data spanning over a period of forty five months was obtained from a manufacturing small and medium-sized enterprise. An optimization was developed in the study to determine the optimal product quantity for profit maximization. Based on the developed model and its optimization, it was determined that the optimal production quantity for the plastic factory to be 12000cups resulting in a maximum profit of N456000. This optimization approach provides valuable insights for the plastic factory’s production planning.
Keywords:
Linear programming; Linear optimization; Manufacturing SME; Optimal product quantity; Plastic industry
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