Optimization of the Production Capacity of a Manufacturing Company as Linear Programming Model

Abstract

Optimization of production capacity can be a major factor on
increasing production rates and reducing production cost. Most
industrial processes and products are not sufficiently utilized and the
use of simple, accessible mathematical technology opens that latent
capacity which is of significant value. The determination of the best
operational setting for the products or process is usually
accomplished through single-objective function optimization
routines. This work attempts to use an existing database obtained
from the records of a manufacturing company to optimize her
production capacity. Ten types of plastic products are produced in
the company that include medium mug, 350cl.container, big chamber
pot, small mug, flower bowl, big mug, fuji reggae container, 1-litre
container, paint container, food plate. A problem of this nature was
identified as a linear programming problem, formulated in
mathematical terms and solved using LINDO software. The solution
obtained revealed that to optimize the production activities of
Haskem Plastic Manufacturing Company (Nigeria) Limited, the
company should produce approximately 978 units of Flower bowl
and approximately 747 units of 1-litre container while other types
should be less produced since their values are turning to zero in
order to achieve a maximum monthly profit of #1704400.