TITTLE OF THE PROPOSAL

APPLICATION OF LINEAR PROGRAMMING PROBLEMS

PROFIT MAXIMIZATION
(A case study of Zuma special Bread Dutse)
UNDER GRADUATE PROPOSAL
Department of Mathematics Federal University Dutse
By
Sam'an Dauda
FSC/MTH/19/2002
Project Supervisor
Mal. Kabir Ibrahim Garba
CONTENTS
• INTRODUCTION
• STATEMENT OF THE PROBLEM
• AIM AND OBJECTIVES
• SIGNIFICANCE OF THE STUDY
• SCOPE AND LIMITATION
• DEFINITION OF SOME BASIC TERMS
• LITERATURE REVIEW
• METHODOLOGY
• REFERENCE
INTRODUCTION
Linear programming is a mathematical concept that is used to find
the optimal solution of the linear function. This method uses simple
assumptions for optimizing the given function. The term linear
programming (LP) was coined by George Dentzig (1947) which refers
to problem in which both the objective function and constraints are
linear as published in Dantzig linear Programming and extension
(1963).
Linear programming has a huge real world application and it is used
to solve various types of problems, linear programming is used in
various industries, transportation industries, telecommunications
and others.
Linear programming determine the way to achieve best outcomes
such as maximum profit or minimum cost in a given mathematical
model as a linear equation.
STATEMENT OF THE
PROBLEM
Application of linear programming problem in profit
maximization. A case study of Zuma special Bread,
which are yet to adopt this model in their production
decision making to enable them to achieve profit
maximization objectives.
AIM AND OBJECTIVES OF
THE STUDY
• The aim of this research work is to formulate a
linear model that would suggest a viable product-
mix to ensure maximum profit for the Zuma special
Bread.
• OBJECTIVES OF THIS RESEARCH ARE:
- To model the problem as a linear programming
problem
- To analyse the combination of the Five sizes of
bread produced by the company that will yield
optimal profit for the company.
SCOPE AND LIMITATION OF
THE STUDY
This study would be restricted to the Application of
Linear programming problem in profit maximization.
A case study of Zuma special Bread.
Linear programming model will be developed and
solve to find the product-mix that will optimize
product of the Bread.
 DEFINITION OF SOME BASIC
TERMS
• LINEAR PROGRAMMING: Is a mathematical concept that is
used to find the optimal solution of the linear function.
• OBJECTIVE FUNCTION: Is prominently used to represent and
solve the optimization problems of linear programming. Is of
the form K=a1x1+a2x2+…………+anxn. Where K is the profit to
maximize.
• DECISION VARIABLES: These are the unknown variables to be
computed in the models. They represent choices that are
available to the decisions maker and are measured in terms of
inputs or outputs. And can be represented by unit power of
alphabets like X1,X2,X3 or X,Y and Z.
• CONSTRAINTS: Is a limit or restriction on the resources which
are to be allocated among various decision variables. These
resources may be production capacity, time, man power, space
or machinery. These Can be expressed as a linear equation (I.e
• OPTIMAL SOLUTION: The solution which gives the maximum
profit or minimum cost is the optimal solution.
• FEASIBLE SOLUTION: The solution which all constraints are
satisfied.
• FEASIBLE REGION: Is a collection of all feasible solutions.
• SLACK VARIABLE: This is a variable added to a constraints with
less or equal to ( 《 )sign which can be converted to equality by
adding a new variable which is non negative to the left hand side
of the inequality.
• SURPLUS VARIABLE: Is a variable with greater than or equal to
( 》 ) which can be converted into equality by reducing a new
variable which is non negative to the left hand side of the
inequality.
• PIVOT ELEMENT: This is the basic element that is
selected first in the simplex algorithm and is used
to invert the matrix.
• PROFIT MAXIMIZATION: A process that companies
undergo to determine the best output and price
levels in order to minimise its return. The company
will usually adjust influential factors such as
production costs, sales price and outputs levels as a
way of reaching its profit goals.
 LITERATURE REVIEW
Linear programming is a specific class of mathematical
problems, in which a linear function is maximize or
minimise subject to a given linear constraints. These
applications developed over a long period of time
following continuous improvement in the applications of
the technique in solving practical Business problems.
Linear programming was developed as a discipline in the
1940's, motivated initially by the need to solved complex
planning problems in war time operations. Its
development accelerate rapidly in the postwar period as
many industries found valuable uses for linear
programming.
 The founder of the subject are generally regarded as
George B. Dantzig who devised the "Simplex
method" in (1947). For planning the activities of the
USA Airforce connected with the problem of sending
supplies to the force. Afterwards, George Dantzig
suggested this approach for solving Business and
industrial problems using simplex method to solve
linear programming Problems.
 Vakilifard, et al, (2013) showed that the product-mix
problem can be used efficiently not only to determine
the optimal operational points but also to provide
information on how those optimal points could be
further increased through changing the constraints of
the optimization problem. Their results showed that
this information could be used to enhance production
by informing expansion plans in which management
identifies and take advantage of the capacity of under
utilise constraints and use them to expand the
capacity of over utilise or limiting constraints.
 Omorho et al (2018) studied the impact of Linear Programming
on profit Maximization in Production Firms for some selected
Firms in Delta State of Nigeria. On the basis of these statistical
analyses, it was discovered that there is a significant relationship
between the application of linear programming model,
profitability and that cost effective allocation of available
resources in an organization can be achieved through the
application of the concept of linear programming. Going by
these findings obtained, the study concludes that, linear
programming is an effective tool for the allocation of
organizational resources that can lead to profit maximization. It
is therefore recommended, that organizations should adopt the
concept of linear programming in production decision making in
order to achieve her profit maximization goals.
Later, Divya (2016) discussed simplex method and its application. He
explained that the simplex method has played a vital role during these many
years in many real world problems and still the simplex method is improving
in order to get the optimum solution.
He explained the cases in which simplex method can be used.
Adeoye et al. (2015) conducted a research on the application of linear
programming in block industry. The aim of the research was to maximize the
profit in the industry. Data were obtained from Iwa block industry in Ilorin
Township on two types of block, 6 inches and 9 inches, and linear
programming method was used to analyze the data. The optimum solution is
obtain at seventh iteration with X,; = 400 units (6 inches block), X2 = 450
units (9 inches block) and profit of #15,200. They recommended to any Block
industry to simply specialize on the production of either 6 inches or 9 inches
in order to minimize the total
cost and maximize the profit.
 Ibitoye, et al, (2015) empirically examined the impact of linear programming in
entrepreneur decision making process as an optimization technique for
maximizing profit with the available resources. Their work drew examples from a
fast food firm that encountered some challenges in the production of meat pie,
chicken pie and doughnut due to an increment in the price of raw materials. Their
results showed that they should discontinue the production of chicken pie and
doughnut and that they should concentrate with production of meat pie. Using
farm activities, Felix, et al (2013) developed a linear program that reflects choices
of selection that is feasible given a set of fixed farm constraints and maximizing
income while achieving other goals such as food security. Their result obtained
using linear programming is compared with the traditional methods. Their results
obtained using the linear programming model shows that they are more superior,
Joly (2012) reported that, optimization is a crucial science for high performance
refineries, its main purpose in the oil sector is to push production process or
operation towards the maximal profit until it reaches the limit at which any
further profitability increase depends on changes in the existing system.
METHODOLOGY
The linear programming method to be used in order
to maximize profit in this study is the Simplex
method. The simplex method can be use to solve
linear programming problems with two or more
decisions variables.
REFERENCES
• Adebiyi. S.0 Amote, B.B.. and Soile, 1. O. (2014). Linear optimization techniques
for product-Mix of paints production in Nigeria, AUDCE. 10(1), 181-190.
• Dantzig G. (1963). Linear Programming and Extension, Princeton University Press.
ISBN 781400884179.
• George Danzig (1947). The Danwzig simplex method for linear programming. IEE
Explore 2(1).
• Ibitoye, O., Atoyebi, K.0., Genevieve, K., and Kadiri, K., (2015), En:repreneur
Decision making process and application of linear programming technique.
European Journal of Business, Economics and Accountancy 5(3)., 1-5.
• Omorho, H O, and Ese, J. £ (2018). Impact of Linear Programming on Profi
Maxinuzation in Production Firms, A Survey of Sciected Firms in Delta State of
Nigena, (Pyrex Journal of Business and Finance Management Research) 44), 30-
37.
• Vakiliferd, W , Esmalifalak, H . and Behzad poor, M., (2013). Profit Optumzation
and Post Opumality Anslyns using Lincar Programming. World Jounal of Social
Scrences (2), 127-137.