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

Author

Listed:
  • Gera Workie Woubante
  • Abebaw Bizuneh Alemu
  • Senait Asmelash Gebrehiwot

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.

Suggested Citation

  • Gera Workie Woubante & Abebaw Bizuneh Alemu & Senait Asmelash Gebrehiwot, 2019. "Ensure optimum profit using linear programming a product-mix of textile manufacturing companies," International Journal of Mathematics in Operational Research, Inderscience Enterprises Ltd, vol. 14(3), pages 389-406.
    • Handle: RePEc:ids:ijmore:v:14:y:2019:i:3:p:389-406
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    Cited by:

    1. Indranil Bose & Aamir Hussain, 2020. "How to Enter Ethiopian Market: A Strategic Case Study," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 9(1), pages 1-11, March.

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