A Model to Determine Optimal Composition of Production to Obtain Maximum Profit & Reduce Overhead Costs by Linear Programming

Ali Hamdollahzadeh and Kamran Firouzabadi

Modern Applied Science, 2016, vol. 10, issue 10, 289

Abstract: There are many factors which put emphasize on the importance of developing pharmaceutical industry such as human health, reduced rate of using medicines, improve healthcare to global level, influence of pharmaceutical industry on exchange market, creating job and etc. Growing improvements in production systems, appearance of mechanized systems and dynamic commercial markets have highlighted the requirements of planning. This study aims to provide a model for defining the optimal composition of production in Sobhan Darou Pharmaceutical Company to obtain maximum profits and reduce overhead costs by linear programming. Lingo application is applied to reach mentioned goals. The results showed that a mathematical planning model can be used to determine minimum of total costs and inventory control strategy. Using linear programming we can take into account all perceptible and imperceptible factors to have a choice, while output models only consider quantitative values. Another advantage of leaner programming is that it can calculate production weight and rate with a systematic method which increases the efficiency and helps to have a proper choice.Â

Date: 2016
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