SMQ3043 - LINEAR PROGRAMMING

GROUP ASSIGNMENT 2 (PHASE 2)

DISCOVERING, EXPLORING AND IMPLEMENTATION OF LINEAR

PROGRAMMING APPROACHES IN SOLVING REAL-LIFE PROBLEMS AT SMALL
AND MEDIUM-SIZED ENTERPRISES

GROUP B1

LECTURER : DR. NURUL HUDA BINTI MOHAMED

No. NAME STUDENT ID

1. NUR SYAHIRAH BINTI MOHD SUKRI D20221102291

2. AFIQ NAJMI BIN AZRI D20221102310

3. NIK MUHAMMAD ALIF HAKIMI BIN NIK D20221102315

MOHD RAFAEE

4. MOHAMMAD DANIAL AMAN BIN RUSNI D20221102300

5. SUCI NURAISHAH BINTI MUHAMAD AZLAN D20221102304

6. MUHAMMAD HAZRUL AMIR BIN D20221102345

SHAMSUDIN

7. NUR FATIN NABILAH BINTI MOHD FAUZI D20221102325

8. MOHAMMAD ADFLIN HAITHAM BIN MOHD D20221102347

SUKRY
TABLE OF CONTENT

NO. CONTENT PAGE

1.0 LP SOLVER SOLUTION 2-3

2.0 OUTPUT SOLUTION 4-6

-​ 2.1 SENSITIVITY ANALYSIS DISCUSSION

3.0 SUMMARY IMPLEMENTATION 7-8

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1.0 USAGE OF LINEAR PROGRAMMING (LP) SOLVER

To solve the linear programming problem, We used Lindo System.

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From the given LP solution, in order to maximise Humaira design need to sell 6 pieces of Sport
Series jerseys, 0 pieces of Aurora jerseys and 0 pieces of Active Wave jerseys in order to get a
total revenue RM 300.00 weekly.

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2.0 OUTPUT SOLUTION

Variables

Variable Price Total Profit Weekly Profit

Sport series RM50 RM300

RM300.00
Aurora RM40 RM0

Active wave RM35 RM0

Constraint

Constraint Status Slack

Designing Not Binding 8

Sewing Binding 0

Packing Not Binding 4

2.1 SENSITIVITY ANALYSIS DISCUSSION

The change in unit revenues for Sport series, Aurora and Active Wave make a new objective
function in which all the objective coefficients are changed simultaneously.

1.​ Sport Series

∴ The current unit revenue for the Sport Series is RM50. It can increase without any
limit (infinity), but it cannot decrease by more than RM10, meaning that the minimum
allowable revenue is RM40.

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 2.​ Aurora
∴ The current unit revenue for the Aurora is RM40. It can increase by up to RM10 but
has no limit on how much it can decrease.

3.​ Active Wave

∴ The current unit revenue for the Active Wave is RM35. It can increase by up to RM15
but has no limit on how much it can decrease.

Variable Optimality Range Minimum Unit Current Unit Maximum Unit

Revenue (RM) Revenue (RM) Revenue (RM)

Sport Series − 10 ≤ 𝑑1 ≤ ∞ 40 50 ∞

Aurora ∞ ≤ 𝑑2 ≤ 10 ∞ 40 50

Active Wave ∞ ≤ 𝑑3 ≤ 15 ∞ 35 50

Constraint (Feasibility)

Row 2:

●​ Current RHS: 20
●​ Allowable Increase: Infinity
●​ Allowable Decrease: 8

∴The constraint can increase indefinitely without affecting feasibility. However, it can
decrease only up to 12 (20 - 8). The solution will become infeasible.

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Row 3:

●​ Current RHS: 18
●​ Allowable Increase: Infinity
●​ Allowable Decrease: 0

∴ The constraint can increase without limit, but it cannot decrease. Any reduction would
lead to infeasibility.

Row 4:

●​ Current RHS: 10
●​ Allowable Increase: Infinity
●​ Allowable Decrease: 4

∴ The constraint can increase indefinitely but can only decrease to 6 (10 - 4). A further
reduction would result in infeasibility.

Resource Dual price Feasibility Range Resource Amount (RM)

Constraints (RM)
Min Current Max

Sport Series 0 − 8 ≤ 𝐷1 ≤ ∞ 42 50 ∞

Aurora 0 0 ≤ 𝐷2 ≤ ∞ 40 40 ∞

Active Wave 0 − 4 ≤ 𝐷3 ≤ ∞ 31 35 ∞

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3.0 SUMMARY IMPLEMENTATION

Contribution of Linear Programming to the Study on Humaira Design SDN BHD

Linear programming (LP) offers a structured framework for solving complex optimization
problems, essential for a business like Humaira Design SDN BHD. This study highlights how LP
can be applied to optimize the company’s operations, ensuring efficient resource allocation,
production planning, and profitability while considering constraints such as production time,
product mix, and profitability goals.

One significant contribution of LP in this context is guiding the optimal allocation of production
time. Humaira Design specializes in producing three jersey products: Sport Series, Aurora, and
Active Wave, each with different production requirements and revenue contributions. For
example, the Sport Series requires 2 hours of designing, 3 hours of sewing, and 1 hour of
packing, generating RM50 per unit. In contrast, Aurora requires less time per stage, with revenue
of RM40 per unit, while Active Wave offers RM35 per unit. Given the limited weekly
production times of 20 hours for designing, 18 hours for sewing, and 10 hours for packing, LP
provides a mathematical model to determine the optimal product mix to maximize revenue
within these constraints.

In addition to time allocation, LP contributes significantly to production planning. The company

has a weekly target of producing exactly six units across all products. By incorporating this
constraint into the LP model, the study ensures that the solution aligns with operational goals
while balancing production time limits. This avoids scenarios of overproduction or
underproduction, which could either exceed the available resources or fail to meet customer
demand.

Another major contribution of LP to this study is its ability to maximize weekly revenue. With
revenue margins varying across the three products, the LP model identifies the optimal mix of
products that yields the highest profit while meeting all constraints. For instance, it might

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prioritize the production of high-revenue items like Sport Series jerseys while ensuring that the
total production quota is met without exceeding the available production time for any stage.

Furthermore, LP supports strategic decision-making by analyzing various scenarios. For

example, if the demand for one product increases or production times change due to equipment
upgrades, LP models can be recalibrated to evaluate the impact on revenue and resource
utilization. This adaptability allows the company to respond to dynamic market conditions
effectively.

Overall, the application of LP in this study demonstrates its ability to provide data-driven
solutions to operational challenges faced by Humaira Design. By optimizing the product mix,
time allocation, and profit, LP enhances the company’s efficiency and profitability, showcasing
its broader relevance in addressing complex business problems. This study serves as a valuable
example for other SMEs in similar industries, emphasizing the importance of mathematical
optimization in achieving business success.