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APPLICATION OF LINEAR PROGRAMMING IN A MANUFACTURING COMPANY IN

FEED MASTERS, KULENDE, KWARA STATE.

Article · September 2013

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 Researcher 2013;5(8) http://www.sciencepub.net/researcher

Application Of Linear Programming In A Manufacturing Company In Feed Masters, Kulende, Kwara State.
1 2
Balogun .O.S. Role .M.R., 3Akingbade .T.J. and 1Akinrefon .A.A.
1
Department of Statistics and Operations Research, Modibbo Adama University of Technology, P.M.B. 2076, Yola,
Adamawa State, Nigeria.
2
Department of Administration NSCDC, Kwara Command, No.5 Adelodun Street, G.R.A. , Ilorin, Kwara State,
Nigeria.
3
Department of Mathematical Sciences, Kogi State University, Anyigba, Kogi State, Nigeria.
[email protected], [email protected], [email protected]

Abstract: Many companies were and are still established to derive financial profit. In this regard the main aim of
such establishments is to maximize (optimize) profit. This research is on using Linear programming Technique to
derive the maximum profit from production of feeds produced by Feeds Maters Limited, Ilorin, Kwara State. Linear
Programming of the operations of the company was formulated and optimum results derived using Software that
employed Simplex method. The result shows that two particular feeds should be produced even when the company
should satisfy demands of the other - not - so profitable items in the surrounding of the company.
Balogun O. S. Role M. R., Akingbade T. J. and Akinrefon A. A. Application Of Linear Programming In A
Manufacturing Company In Feed Masters, Kulende, Kwara State. Researcher 2013;5(8):34-38]. (ISSN: 1553-
9865). http://www.sciencepub.net/researcher. 8

Keywords: Optimization, Linear programming, Objective function, Constraints.

1. Introduction The research is aimed at deciding how limited

Company managers are often faced with resources, raw materials of Feed Masters Limited,
decisions relating to the use of limited resources. Ilorin , Kwara State would be allocated to obtain the
These resources may include men, materials and maximum contribution to profit. It is also aimed at
money. In other sector, there are insufficient determining the products that contribute to such
resources available to do as many things as profit.
management would wish. The problem is based on The scope of the research is to use Linear
how to decide on which resources would be allocated Programming on some of the feeds produced by Feed
to obtain the best result, which may relate to profit or Masters Limited, Ilorin. The data on which this is
cost or both. Linear Programming is heavily used in based are quantity of raw materials available in stock,
Micro-Economics and Company Management such cost and selling prices and therefore the profit of each
as Planning, Production, Transportation, Technology product. The profit constitutes the objective function
and other issues. Although the modern management while raw materials available in stock are used as
issues are error changing, most companies would like constraints. If demands which must be met are to be
to maximize profits or minimize cost with limited available, such can be included in the constraints.
resources. Therefore, many issues can be The data is secondary data collected in the year 2007
characterized as Linear Programming Problems at the Feed Masters Limited, Ilorin, Kwara State.
(Sivarethinamohan, 2008). The Simplex method, also called Simple
A linear programming model can be formulated technique or Simplex Algorithm, was invented by
and solutions derived to determine the best course of George Dantzig, an American Mathematician, in
action within the constraint that exists. The model 1947. It is the basic workhorse for solving Linear
consists of the objective function and certain Programming Problems up till today. There have
constraints. For example, the objective of Feed been many refinements to the method, especially to
Masters Limited, Ilorin is to produce quality feeds take advantage of computer implementations, but the
needed by its customers, subject to the amount of essentials elements are still the same as they were
resources (raw materials) available to produce the when the method was introduced (Chinneck, 2000;
products needed by their respective customers who Gupta and Hira, 2006).
should also not violate Standard Organization of The Simplex method is a Pivot Algorithm that
Nigeria (SON). The problem then is on how to utilize transverses the through Feasible Basic Solutions
limited resources to the best advantage, to maximize while Objective Function is improving. The Simplex
profit and at the sometime selecting the products to method is, in practice, one of the most efficient
be produced out of the number of products algorithms but it is theoretically a finite algorithm
considered for production that will maximize profit. only for non-degenerate problems (Feiring, 1986).

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 Researcher 2013;5(8) http://www.sciencepub.net/researcher

To derive solutions from the LP formulated using the In standard form (Canonical form), it is
Simplex method, the objective function and the r
constraints must be standardized. Maximize Z   C j X j
The characteristics of the standard form are: j 1
(i) All the constraints are expressed in the Subject to
form of equations except the non- r
negativity constraints which remain a ij X j  Si  bi , i  1, 2,3,...., m
inequalities ( 0) . j 1

(ii ) The right-hand-side of each

constraint equation is non-negative. X j  0, j  1, 2, 3,...., n
(iii ) All the decision variables are non- Si  0, i  1, 2, 3,...., m
negative. Any vector X satisfying the constraints of the
(iv ) The Objective function is of Linear Programming Problems is called Feasible
maximization or minimization type. Solution of the problem (Fogiel, 1996; Schulze,
Before attempting to obtain the 1998; Chinneck, 2000).
solution of the linear programming 1.1 Algorithm to solve linear
problem, it must be expressed in programming problem:
the standard form is then expressed in (i ) See that all bis are positive, if a constraint has
the “the table form” or “matrix form”
as given below: negative bi multiply it by 1 to make bi
r positive.
Maximize Z   C j X j (ii ) Convert all the inequalities by the addition of
j 1
slack or by subtraction of surplus variable as the
Subject to case may be.
r (iii ) Find the starting Basic Feasible Solution.
a
j 1
ij X j  bi , (bi  0), i  1, 2,3,..., m (iv ) Construct the Simplex table as follows:
X j  0, j  1, 2,3,..., m

Basic Ej X1 X2 X 3 .... Xn y1 y2 ... ym Xb

Variable

y1 0 a11 a12 a13 ... a1m 1 0 0 b1

y2 0 a21 a22 a23 ... a2m 0 1 0 b2

y3 0 a31 a32 a33 ... a3m 0 0 1 bm

Zj Z1 Z2 Z3 Z4 0 0 0 Z  Z0

Ej E1 E2 E3 E4 0 0 0

. . . . . . . .
bj  Zj  Ej X1 X 2 X 3 ... X n y1 y2 ... ym

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 Researcher 2013;5(8) http://www.sciencepub.net/researcher

(v) Testing for optimality of Basic Feasible

New row = Former element in old rows 
Solution by computing Z j  E j . If (intersection element in the old row) 
Z j  E j  0, the solution is optimal; (Corresponding element of replacing row).
(viii) Test of this new Basic Feasible Solution for
otherwise, we proceed to the next step.
(vi ) To improve on the Basic Feasible Solution, we optimality as (6) it is not optimal; repeat the
find the basic matrix. The variable that process till optimal solution is obtained. This
was implemented by the software
corresponds to the most negative of Z j  E j is
Management Scientist Version 6.0.
the INCOMING VECTOR while the variable
bi Table 1: Quantity of raw materials available in stock
that corresponds to the minimum ratio for for month
aij
Raw Materials Quantity Available per month (kg)
a particular j , and aij  0, i  1, 2, 3,..., m Maize 20000
is the OUTGOING VECTOR. G.N.C 15000
Soya Beans 25000
( vii ) The key element or the pivot element is Lime Stone 10000
determined by considering the intersection Bone 14000
between the arrows that corresponds to both Wheat Offal 15500
incoming and outgoing vectors. The key Maize Offal 15500
element is used to generate the next table. In the Fish Offal 8000
next table, pivot element is replaced by UNITY, Lysine 1000
while all other elements of the pivot column are Methionine 1000
replaced by zero. To calculate the new values Salt 8000
for all other elements in the remaining rows of Layer Premix 2000
that first column, we use the relation. Broiler Premix 75
Chick Premix 75

Table 2: Quantity of raw materials needed to produce a unit each product

PRODUCT
Raw Material Chick Mash (kg) Layer Mash (kg) Grower Mash Broiler Starter Broiler Finisher
(kg) Mash (kg) Mash (kg)
Maize 11 11 8 11 10
G.N.C 3 3 2 5 3.5
Soya Beans 4.5 3 8 5 4.5
Lime Stone 0 2 0.5 0 0
Bone 1 0.5 0.5 1.5 0.5
Wheat Offal 5 6.5 4 1.6 5
Maize Offal 0 0 2.5 0 0
Fish Offal 0.5 0.5 0 1 1
Lysine 0.05 0.05 0.05 0.03 0.03
Methionie 0.05 0.05 0.05 0.03 0.03
Salt 0.07 0.075 0.075 0.07 0.07
Layer Premix 0 0.075 0 0 0
Broiler Premix 0 0 0 0.07 0.07
Chick Premix 0.07 0 0.075 0 0

Table 3: Average Cost and Selling of a crate of each product

Product Average Cost price(₦) Average Selling price(₦) Profit(₦)
Chick Mash 966.55 1300 333.45
Layer Mash 898.88 1200 301.12
Grower Mash 697.63 1000 302.37
Broiler Starter Mash 1142.35 1350 207.65
Broiler Finisher Mash 1013.75 1325 311.25

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 Researcher 2013;5(8) http://www.sciencepub.net/researcher

1.2 Model Formulation

Maximize Z  333.45 X 1  301.12 X 2  302.37 X 3  207.65 X 4  311.25 X 5
Subject to
11X 1  11X 2  8 X 3  11X 4  10 X 5  20000
3 X 1  3 X 2  2 X 3  5 X 4  3.5 X 5  15000
4.5 X 1  3 X 2  8 X 3  5 X 4  4.5 X 5  25000
2 X 1  0.5 X 5  10000
X 1  0.5 X 2  0.5 X 3  1.5 X 4  0.5 X 5  14000
5 X 1  6.5 X 2  4 X 3  1.6 X 4  5 X 5  15500
2.5 X 3 15000
0.5 X 1  0.5 X 2  X 4  X 5  8000
0.05 X 1  0.05 X 2  0.05 X 3  0.03 X 4  0.03 X 5  1000
0.05 X 1  0.05 X 2  0.05 X 3  0.03 X 4  0.03 X 5  1000
0.07 X 1  0.075 X 2  0.075 X 3  0.07 X 4  0.07 X 5  8000
0.075 X 2  2000
0.07 X 4  0.07 X 5  75
0.07 X 4  0.075 X 5  75
For X i  0, i  1, 2, 3,...,5

Now, introducing the slack variable to convert inequalities to equations, it gives:

Maximize Z  333.45 X 1  301.12 X 2  302.37 X 3  207.65 X 4  311.25 X 5
Subject to
11X 1  11X 2  8 X 3  11X 4  10 X 5  X 6  20000
3 X 1  3 X 2  2 X 3  5 X 4  3.5 X 5  X 7  15000
4.5 X 1  3 X 2  8 X 3  5 X 4  4.5 X 5  X 8  25000
2 X 1  0.5 X 5  X 9  10000
X 1  0.5 X 2  0.5 X 3  1.5 X 4  0.5 X 5  X 10  14000
5 X 1  6.5 X 2  4 X 3  1.6 X 4  5 X 5  X 11  15500
2.5 X 3  X 12  15000
0.5 X 1  0.5 X 2  X 4  X 5  X 13  8000
0.05 X 1  0.05 X 2  0.05 X 3  0.03 X 4  0.03 X 5  X 14  1000
0.05 X 1  0.05 X 2  0.05 X 3  0.03 X 4  0.03 X 5  X 15  1000
0.07 X 1  0.075 X 2  0.075 X 3  0.07 X 4  0.07 X 5  X 16  8000
0.075 X 2  X 17  2000
0.07 X 4  0.07 X 5  X 18  75
0.07 X 4  0.075 X 5  X 19  75
For X i  0, i  1, 2,...,19

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 Researcher 2013;5(8) http://www.sciencepub.net/researcher

Where, more of 25kg of Layer mash, 25kg of Grower mash

X1 = 25kg of Chick mash and 25kg of Broiler finisher mash in order to satisfy
X2 = 25kg of Layers mash their customers. Also, more of 25kg of Layer mash,
X3 = 25kg of Growers mash 25kg of Grower mash and 25kg of Broiler finisher
X4 = 25kg of Broiler starter mash mash should be produced in order to attain maximum
X5 = 25kg of Broiler finisher mash profit because they contribute mostly to the profit
earned.
2. Analysis and Result
Optimal Solution Correspondence to:
Objective function value = 668,367.36 Balogun Oluwafemi Samson
Variables Value c/o Department of Statistics and Operations
X1 0.000 Research, Modibbo Adama University of
X2 181.818 Technology, P.M.B. 2076, Yola, Adamawa State.
X3 1000.000 Nigeria
X4 0.000 Telephone: +2348035217339
X5 1000.000 Emails: [email protected]

References
The Management Scientist Version 6.0 gives:
1. Chinneck, .J.W. Practical Optimization, A
Z  668,367 X 2  182, X 3  1000 and X 5  1000 Gentle introduction; 2000.
2. www.sce.carleton.ca/faculty/chinneck/po.html
3. Interpretation of Result 3. Feiring, B.R. Linear Programming: An
Based on the data collected the optimum Introduction; Sage Publications Inc., USA, 1986.
results derived from the model indicate that three 4. Fogiel, .M. Operations Research Problems
products should be produced 25kg of Layers mash, Solver; Research and Education Association;
25kg of Grower mash and 25kg of Broiler finisher Piscataway, New Jersey, 1996.
mash. Their production quantities should be 182, 5. Gupta, .P.K. and Hira, .D.S. Operations
1000 and 1000 units respectively. This will produce a Research; Rajendra Ravindra Printers Ltd., New
maximum profit of ₦668,367. Delhi, 2006.
6. Schulze, .M.A. Linear Programming for
4. Conclusion Optimization; Perspective Scientific Instruments
Based on the analysis carried out in this Inc., USA, 1998.
research and the result shown, Feed Master Limited, 7. Sivarethinamohan, .R. Operations Research; Tata
Ilorin should produce 25kg of Chick mash, 25kg of McGraw Hill Publishing Co. Ltd., New Delhi,
Layer mash, 25kg of Grower mash, 25kg of Broiler 2008.
starter mash and 25kg of Broiler finisher mash but

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