Charles Tochukwu OKWOR

THE APPLICATION OF LINEAR PROGRAMMING IN PROFIT MAXIMIZATION IN A MANUFACTURING INDUSTRY: A CASE STUDY OF NADIA BAKERY COMPANY LIMITED, BENIN CITY

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Abstract
This paper demonstrates the use of linear programming methods as applicable in the manufacturing industry. Primary data was used for this study and were collected from the Quality Control of Nadia Bakery Company, Benin City, Nigeria, on the three types of bakery products which includes Family size bread, Sardine bread and Banana bread. Information on profit of the already produced products as well as quantity of each of the raw material held in stock per month for the production of each of the products were available in the records of the company. The analysis was carried out with an optimization software GAMS (General Algebraic Modeling System. Based on the profit of the products, the maximum profit that would accrue to the company given the optimal product mix was determined. The results showed that the company would attain optimal daily profit level of about #309,045 if she concentrates mainly on the unit production of Family sized bread 3.26, Sardine bread 1.89 units, Banana bread of 1.88 units. The research recommends that the company should produce within this optimal mix, review allocations of raw materials as they were many non-binding constraints and employ more resource on the binding constraints to improve the optimal value
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