Ensure optimum profit using linear programming a product-mix of textile manufacturing companies

Gera Workie Woubante, Abebaw Bizuneh Alemu and Senait Asmelash Gebrehiwot

International Journal of Mathematics in Operational Research, 2019, vol. 14, issue 3, 389-406

Abstract: An optimum profit is to be guaranteed for a rapidly changing manufacturing situation when the best product mix is produced. The product mix determination problem involves determining the optimal level of different products given a set of capacity limitations. This paper addresses a tool linear programming in operations research for determining the optimal allocation of limited resources in order to maximise profit. Fortunately, having well-formulated model, solution software package Excel Solver helps to determine the best combination of available resources. This paper considers a textile industrial unit in Ethiopia as a case study. In this company, the data gathered was used to estimate the parameters of the linear programming model. The findings of the study show that the profit of the company can be improved by 11.8% (= (66850232.79 − 59793841.91 / 59793841.91)) if linear programming technique is used. This can be considered as a remarkable profit improvement. In addition, actual resource utilization can be significantly improved by adopting linear programming method.

Keywords: excel solver; linear programming; optimal profit; product mix; textile manufacturing. (search for similar items in EconPapers)
Date: 2019
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