Linear Optimization Techniques for Product-Mix of Paints Production in Nigeria
Many paint producers in Nigeria do not lend themselves to flexible production process which is important for them to manage the use of resources for effective optimal production. These goals can be achieved through the application of optimization models in their resources allocation and utilisati...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Danubius University
2014-02-01
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| Series: | Acta Universitatis Danubius: Oeconomica |
| Subjects: | |
| Online Access: | http://journals.univ-danubius.ro/index.php/oeconomica/article/view/2018/2067 |
| Summary: | Many paint producers in Nigeria do not lend themselves to flexible production process
which is important for them to manage the use of resources for effective optimal production. These
goals can be achieved through the application of optimization models in their resources allocation and
utilisation. This research focuses on linear optimization for achieving product- mix optimization in
terms of the product identification and the right quantity in paint production in Nigeria for better
profit and optimum firm performance. The computational experiments in this research contains data
and information on the units item costs, unit contribution margin, maximum resources capacity,
individual products absorption rate and other constraints that are particular to each of the five
products produced in the company employed as case study. In data analysis, linear programming
model was employed with the aid LINDO 11 software to analyse the data. The result has showed that
only two out of the five products under consideration are profitable. It also revealed the rate to which
the company needs to reduce cost incurred on the three other products before making them profitable
for production. |
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| ISSN: | 2065-0175 2067-340X |