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The Application of Linear Programming for Profit

This research paper explores the application of linear programming (LP) to maximize profits in bakeries by optimizing production and resource allocation. It systematically defines linear objective functions and constraints to identify the most profitable product combinations while addressing challenges like ingredient availability and market demand. The findings highlight LP's effectiveness as a decision-making tool, providing actionable insights for bakeries to enhance profitability and operational efficiency.
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0% found this document useful (0 votes)
2 views

The Application of Linear Programming for Profit

This research paper explores the application of linear programming (LP) to maximize profits in bakeries by optimizing production and resource allocation. It systematically defines linear objective functions and constraints to identify the most profitable product combinations while addressing challenges like ingredient availability and market demand. The findings highlight LP's effectiveness as a decision-making tool, providing actionable insights for bakeries to enhance profitability and operational efficiency.
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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11 XI November 2023

https://doi.org/10.22214/ijraset.2023.56874
International Journal for Research in Applied Science & Engineering Technology (IJRASET)
ISSN: 2321-9653; IC Value: 45.98; SJ Impact Factor: 7.538
Volume 11 Issue XI Nov 2023- Available at www.ijraset.com

“The Application of Linear Programming for Profit


Maximization in a Bakery”
Meghana Singh P1, Dr. Anitha Jandhayala2
1
Student, BBA Department, PES University
2
Associate Professor, BBA Department, PES University

Abstract: This research paper examines how linear programming can be strategically applied to maximize profits in a bakery.
Considering the challenges faced by bakeries, such as varied product offerings and changing demand, the study investigates the
use of LPP techniques to optimize production and resource allocation. By systematically defining linear objective functions and
constraints, the research aims to pinpoint the most profitable combination of bakery products, taking into account factors like
ingredient availability, production capacities and market demands. Real world case studies and practical and practical examples
demonstrate how LPP assists decision makers in making informed choices, ultimately improving profitability while maintaining
operational efficiency. The findings provide practical insights into the effectiveness of LPP as a decision – making tool within the
dynamic and competitive landscape of the bakery industry.
Keywords: Linear Programming, Bakery, Profit Maximization, Operational Efficiency, Resource Allocation, Case Studies, Best
Practices.

I. INTRODUCTION
Businesses today aim to be lucrative and efficient in the fast-paced world of business. This is valid for companies across numerous
industries. In order to accomplish these objectives, a lot of firms have started using mathematical tools as a way to inform their
strategic decision-making. This study focuses on the particular field of bakery management and attempts to investigate the
application of a mathematical tool called linear programming (LP) to maximize earnings.
As vital members of the food chain, bakeries face a variety of complex issues, including controlling production costs, juggling
scarce resources, and responding to shifting consumer expectations. Systematic optimization becomes essential in this complex
operational environment. The purpose of this study is to provide insight into the ways in which bakeries might use linear
programming as a strategic strategy to address the unique problems they have while trying to maximize earnings.
The mathematical optimization methodology known as linear programming, which provides an organized approach to resource
allocation, is the central focus of this study. The primary purpose is to maximize or reduce a linear objective function while adhering
to a set of linear restrictions. Because of its simple mathematical language and ability to handle the complexities of decision-
making, bakers find Linear Programming to be appealing. For bakeries hoping to streamline their manufacturing procedures and, as
a result, increase their total profitability, it becomes an alluring and sensible option.
To sum up, this study delves deeply into the strategic application of linear programming in bakery management. The study is to
provide workable solutions that can transform how bakeries approach the objective of increasing profitability in a competitive and
dynamic market by recognizing the unique challenges faced by bakeries and utilizing the power of mathematical optimization.

A. Objectives
1) Investigate how Linear Programming can help optimize resource use in bakeries for higher profits.
2) Show how bakeries can use Linear Programming as a tool for decision-making, guiding choices that improve overall
profitability.

II. LITERATURE REVIEW


This research paper investigates how Linear Programming (LP) techniques can be strategically applied to maximize profits in a
bakery with a diverse product mix. By carefully defining linear objective functions and constraints, the study aims to pinpoint the
most profitable combination of bakery products and their respective production quantities. Real-world case studies and practical
examples are used to demonstrate the effectiveness of LP in assisting decision-makers to efficiently allocate resources, optimize the
product mix, and meet market demands.

©IJRASET: All Rights are Reserved | SJ Impact Factor 7.538 | ISRA Journal Impact Factor 7.894 | 1749
International Journal for Research in Applied Science & Engineering Technology (IJRASET)
ISSN: 2321-9653; IC Value: 45.98; SJ Impact Factor: 7.538
Volume 11 Issue XI Nov 2023- Available at www.ijraset.com

The findings contribute practical insights into the application of LP in bakery management, emphasizing its role in improving
economic outcomes through well-informed decision-making and resource allocation. (Kayode Olakunle Oluwaseyi, Atsegameh
Elizabeth, Omole Ezekiel Olaoluwa, 2020)
This research paper delves into the use of Linear Programming (LP) to enhance decision-making in the transportation of bakery
products. The study systematically formulates linear objective functions and constraints to optimize logistical processes within the
bakery's supply chain. By applying LP techniques, the paper aims to identify the most effective routes and quantities for transporting
bakery goods, considering critical factors like delivery times, transportation expenses, and storage capacities. Real-world case
studies and practical applications are utilized to demonstrate how LP assists decision-makers in refining product transportation,
ultimately contributing to increased efficiency and cost-effectiveness in the distribution network of the bakery industry. (Muhammad
Abid, Muhammad Saqlain, 2023)
This research paper investigates the use of the Simplex Method to maximize profits in a bakery store. The study systematically
employs the Simplex Method, a mathematical optimization technique, to identify the best combination of bakery products and
pricing strategies for achieving the highest profitability. By creating linear programming models and considering various constraints,
the paper aims to offer decision-makers in the bakery industry a structured approach to refine their product offerings and pricing
schemes. Practical case studies and real-world examples are presented to illustrate how the Simplex Method effectively guides
decision-makers in making informed choices that contribute to overall profitability in a bakery store context. (Mohd Syafarudy Abu,
Lim Eng Aik, Tan Wee Choon, Norazman Arbin, 2022)
This research paper delves into the pursuit of profit maximization in a bakery through the efficient allocation of raw materials. The
study systematically explores methods to optimize the allocation of raw materials, employing practical techniques. Utilizing linear
programming models and considering various constraints, the research aims to pinpoint the most effective way to allocate raw
materials, thereby improving production efficiency and maximizing profits. The integration of real-world case studies and practical
examples illustrates how optimal raw material allocation contributes to streamlined bakery operations and ultimately leads to
improved economic outcomes. The findings offer practical insights for decision-makers in the bakery industry seeking to boost
profitability through strategic resource allocation. (Laxmi Saoji, Sapna Bhat, Hitesh Manghnani, Somya Pathak, 2020)
This research paper examines how a Linear Programming Model approach is employed for profit optimization in a product mix
company. The study systematically explores the application of linear programming models to identify the most profitable
combination of products. By formulating linear objective functions and considering various constraints, the research aims to offer
decision-makers in product mix companies a structured method to improve their overall economic outcomes. Practical case studies
and real-world examples are presented in the paper to illustrate how the Linear Programming Model approach guides decision-
makers effectively, aiding them in making informed choices that contribute to profit optimization within the context of a product
mix company. (Garba M. K., Banjoko A. W., Yahya W. B., Gatta N. F., 2020)
This research study explores the use of optimization approaches to enhance bread production operations. The study's main goal is to
use mathematical techniques to improve and optimize several production cycle components. It methodically examines and improves
the bakery's scheduling, resource allocation, and general operational effectiveness. Finding practical methods to increase output
while lowering expenses and wasting resources is the goal of the research. The study offers insightful information about how
optimization techniques can be strategically used to improve production processes in bakery operations, resulting in increased
productivity and efficiency. It does this by combining real-world case studies and practical implementations. (Naik Mahesh
Sudhakar Dr., Desai Kruti, Lad Janhavi, Surve Vaishnavi, Bhatia Drishti, 2021)
This study looks into the real-world use of linear programming (LP) to optimize the product mix in order to maximize profits and
minimize expenses. In order to determine the most beneficial combination of products, the study methodically develops linear
objective functions and constraints using LP techniques and mathematical modelling. The study shows how LP can be a useful tool
for decision-makers to more effectively allocate resources, optimize manufacturing processes, and enhance overall economic results
through case studies and real-world applications. The results provide important insights into the dual function of LP and show how
adaptable it is as a tool for making decisions for companies looking to reduce costs and maximize profits at the same time when
deciding on a product mix. (Ruby Chanda, Vanishree Pabalkar, Sudeepa Gupta, 2022)
This study looks into the use of linear programming (LP) approaches to increase revenue. Using mathematical modelling and LP
approaches, the study methodically creates linear objective functions and constraints to find the best set of variables to achieve
maximum profitability. The article demonstrates how LP works well to help decision-makers strategically manage resources,
optimize processes, and achieve better economic results through case studies and real-world examples.

©IJRASET: All Rights are Reserved | SJ Impact Factor 7.538 | ISRA Journal Impact Factor 7.894 | 1750
International Journal for Research in Applied Science & Engineering Technology (IJRASET)
ISSN: 2321-9653; IC Value: 45.98; SJ Impact Factor: 7.538
Volume 11 Issue XI Nov 2023- Available at www.ijraset.com

Our knowledge of LP as a useful tool for companies looking to maximize profits through well-informed decision-making and
efficient resource allocation is improved by the findings. (Umar, 2021)
This research paper investigates the use of Linear Programming (LP) for profit maximization. The study systematically explores
how LP, a mathematical optimization technique, is utilized to determine the most effective allocation of resources and decisions that
result in maximum profitability. By formulating linear objective functions and considering various constraints, the research aims to
offer decision-makers in various fields a structured method to improve overall economic outcomes. Real-world case studies and
practical examples are included in the paper to illustrate how the application of LP contributes to informed decision-making and
strategic resource allocation, ultimately leading to profit maximization. (Oyekan Ezekiel A., Temisan Gabriel O., 2019)
This research paper investigates the achievement of an optimal mix of raw materials in Tehinnah Cakes and Craft using Linear
Programming (LP). The study systematically explores the practical application of LP to determine the most efficient combination of
raw materials, aiming to improve production efficiency and reduce costs. By formulating linear objective functions and considering
specific constraints relevant to Tehinnah Cakes and Craft, the research aims to provide valuable insights for decision-makers in the
bakery industry. Real-world case studies and practical examples are incorporated into the paper to highlight how optimizing the raw
materials mix contributes to a more streamlined bakery operation and better economic outcomes for Tehinnah Cakes and Craft. The
findings offer actionable recommendations for decision-makers seeking to enhance operational efficiency and profitability through
strategic raw material allocation. (Egharevba, Aimuamwosa Julia, Ojekudo Nathaniel Akpofure, 2021)
This research paper investigates how the Simplex Method is applied for profit maximization in Baker's Cottage. The study
systematically uses the Simplex Method, a mathematical optimization technique, to find the best combination of bakery products
and pricing strategies that result in maximum profitability. By creating linear programming models and considering various
constraints, the research aims to offer decision-makers at Baker's Cottage a structured method to improve their overall economic
outcomes. Practical case studies and real-world examples are included in the paper to illustrate how the Simplex Method effectively
guides decision-makers, helping them make informed choices that contribute to profit maximization within a bakery setting like
Baker's Cottage. (Nur Zafira Mohd Azman, Nurul Akmal Mohamed, Nurul Farihan Mohamed, Muzirah Musa , 2022)
This study presents a Linear Programming (LP) model optimized for the product mix of a Small Medium Enterprise (SME)
company with the goal of maximizing profits. The research methodically creates linear objective functions and restrictions in order
to strategically identify the best possible product and production quantity combinations that will ultimately yield the maximum
profitability. The research attempts to provide SMEs with a useful decision-making tool, easing resource allocation, production
planning, and satisfying market expectations by utilizing mathematical modelling and LP methodologies. The study offers insightful
information about the viability of LP in small- and medium-sized enterprise (SME) settings through the analysis of real-world case
studies and useful applications, demonstrating its efficacy in enhancing profit results through well-informed and optimized product
mix strategies. (Safwa Mohd Baki, Jack Kie Cheng, 2021)
This research paper focuses on how Linear Programming (LP) can strategically enhance the utilization of raw materials in the bread
baking industry in Nigeria. It addresses the challenges related to variable resource availability and market demands by
systematically exploring how LP techniques can efficiently allocate raw materials, thereby optimizing production processes and
maximizing efficiency within the baking sector. The study aims to provide practical insights for decision-makers in Nigeria's bread
baking industry by formulating tailored linear objective functions and constraints. Real-world case studies and practical examples
are utilized to demonstrate how LP aids informed decision-making, ensuring the optimal use of raw materials amidst the dynamic
nature of the industry in Nigeria. The findings offer valuable insights into the effective application of LP for resource optimization
in the unique context of the Nigerian bread baking industry. (Amanawa, 2022)
This research paper explores the practical use of Linear Programming (LP) to optimize cake production in a bakery. The study
systematically investigates how LP, a mathematical optimization method, is applied to improve bakery efficiency by determining the
best allocation of resources and decisions for enhanced cake production processes. By creating linear objective functions and
considering specific constraints applicable to bakery operations, the research aims to provide practical insights for decision-makers
in the baking industry. Real-world case studies and practical examples are included in the paper to illustrate how the application of
LP supports informed decision-making and strategic resource allocation, leading to increased efficiency in cake production and
improved overall bakery operations. The findings present actionable recommendations for decision-makers aiming to boost
productivity and streamline operations through the practical application of linear programming techniques. (Phanindra. G, Anitha
Jandhyala, 2023)

©IJRASET: All Rights are Reserved | SJ Impact Factor 7.538 | ISRA Journal Impact Factor 7.894 | 1751
International Journal for Research in Applied Science & Engineering Technology (IJRASET)
ISSN: 2321-9653; IC Value: 45.98; SJ Impact Factor: 7.538
Volume 11 Issue XI Nov 2023- Available at www.ijraset.com

This research paper explores the use of Linear Programming Problem (LPP) for profit maximization in the context of bakery
products. The study systematically investigates how LPP, a mathematical optimization method, is employed to determine the best
combination of bakery products, pricing strategies, and resource allocation to achieve maximum profitability. By formulating linear
objective functions and considering various constraints relevant to bakery operations, the research aims to provide decision-makers
in the bakery industry with a structured approach to improve their economic outcomes. Real-world case studies and practical
examples are incorporated into the paper to illustrate how the application of LPP supports informed decision-making and strategic
resource allocation, ultimately leading to profit maximization for bakery products. The findings present practical insights for
decision-makers aiming to optimize their product mix and pricing strategies through the practical application of linear programming
techniques. (Pawan B V, Anitha Jandhyala, 2023)

III. RESEARCH METHODOLOGY


The company owner is the source of the quantitative data used in this project. We obtained data directly from the firm owner. The
information obtained by contacting the warehouse manager is regarded as primary data. The primary motivation behind gathering
this data is scientific inquiry.

Constraints Breads (x) Cookies (y) Availability


Labor Hours 3 2 80
Oven Capacity 2 4 80
Raw Materials 2 3 100
Demand 1 1 40
Profit 50 40

The main objective is to increase revenue by optimizing the sales of breads (x) and cookies (y).

Constraint 1: Labor Hours


3x + 2y ≤ 80
This constraint ensures that the time spent on making both breads (x) and cookies (y) combined does not surpass the available 80
hours of labor.

Constraint 2: Oven Capacity


2x + 4y ≤ 80
This constraint ensures that the total baking time for both breads (x) and cookies (y) combined does not exceed the available oven
capacity, set at 80 units of time.

Constraint 3: Raw Material


2x + 3y ≤ 100
This constraint ensures that the total use of ingredients for both breads (x) and cookies (y) does not go beyond the given amount of
100 units. It reflects the available quantity of essential ingredients needed for production.

Constraint 4: Market Demand


x + y ≤ 40
This constraint puts a cap on the overall production, making sure it does not go beyond the total demand in the market. Here, the
combined production of breads (x) and cookies (y) should not surpass 40 units, aligning with the market's overall expectations and
needs.

1) Decision Variables
Let the quantity of breads to be produced in a day be x
Let the quantity of cookies to be produced in a day be y

©IJRASET: All Rights are Reserved | SJ Impact Factor 7.538 | ISRA Journal Impact Factor 7.894 | 1752
International Journal for Research in Applied Science & Engineering Technology (IJRASET)
ISSN: 2321-9653; IC Value: 45.98; SJ Impact Factor: 7.538
Volume 11 Issue XI Nov 2023- Available at www.ijraset.com

2) Inequalities
3x + 2y ≤ 80
2x + 4y ≤ 80
2x + 3y ≤ 100
x + y ≤ 40

3) Objective Function
Maximum Z = 50x + 40y
The LPP for above data is,
Max Z = 50x + 40y
Subject to, 3x + 2y ≤ 80
2x + 4y ≤ 80
2x + 3y ≤ 100
x + y ≤ 40
x, y ≥ 0

IV. ANALYSIS AND INTERPRETATION


We are using the simplex method and the graphical way to analyze the data. A visual depiction is provided by the graphical method,
and a computer approach for a comprehensive examination is provided by the simplex method.

C1 3 2 ≤ 80
C2 2 4 ≤ 80
C3 2 3 ≤ 100
C4 1 1 ≤ 40

C1 C2
0 27 0 40
40 0 20 0
C3 C4
0 50 0 40
34 0 40 0

A 20
B 10

50 40
0 0 0
27 0 1350
0 20 800
20 10 1400

©IJRASET: All Rights are Reserved | SJ Impact Factor 7.538 | ISRA Journal Impact Factor 7.894 | 1753
International Journal for Research in Applied Science & Engineering Technology (IJRASET)
ISSN: 2321-9653; IC Value: 45.98; SJ Impact Factor: 7.538
Volume 11 Issue XI Nov 2023- Available at www.ijraset.com

VARIABLES x y
VALUES 20 10
COEFFICIENT 50 40

CONSTRAINTS x y LHS RHS


C1 3 2 80 ≤ 80
C2 2 4 80 ≤ 80
C3 2 3 70 ≤ 100
C4 1 1 30 ≤ 40

MAX 1400

45

40

35

30

25

20

15

10

0
0 10 20 30 40 50 60

We found the ideal values for x and y that maximize revenues while meeting all constraints by using both the solver approach and
graphical analysis. The best option in this scenario is x = 20 and y = 10, which results in a maximum profit of 1400. By determining
the best production numbers for bread and cookies, ensuring that there are enough ingredients, and satisfying minimal demand
requirements—all while reducing capacity and demand constraints—the bakery owner maximizes profit.

V. CONCLUSION
In conclusion, this research emphasizes the strategic use of linear programming techniques to maximize profits in the challenging
environment of bakery operations. It addresses the complexities arising from diverse product offerings and fluctuating demand,
showcasing how Linear Programming Problem (LPP) methodologies effectively optimize production and resource allocation. The
systematic formulation of linear objective functions and constraints helps decision-makers pinpoint the most profitable combination
of bakery products, considering crucial factors like ingredient availability, production capacities, and market demands. The real-
world case studies and practical examples provided underscore the tangible impact of LPP in facilitating informed decision-making.

©IJRASET: All Rights are Reserved | SJ Impact Factor 7.538 | ISRA Journal Impact Factor 7.894 | 1754
International Journal for Research in Applied Science & Engineering Technology (IJRASET)
ISSN: 2321-9653; IC Value: 45.98; SJ Impact Factor: 7.538
Volume 11 Issue XI Nov 2023- Available at www.ijraset.com

In essence, the findings highlight the practicality and effectiveness of LPP as a valuable decision-making tool, offering insights that
can significantly enhance profitability while ensuring operational efficiency in the dynamic and competitive bakery industry.

REFERENCES
[1] Kayode Olakunle Oluwaseyi, Atsegameh Elizabeth, Omole Ezekiel Olaoluwa. (2020). Profit Maximization in a Product Mix Bakery Using Linear
Programming Technique.
[2] Muhammad Abid, Muhammad Saqlain. (2021). Decision-Making for the Bakery Product Transportation using Linear Programming.
[3] Mohd Syafarudy Abu, Lim Eng Aik, Tan Wee Choon, Norazman Arbin. (2022). Simplex Method for Profit Maximization in Bakery Store.
[4] Laxmi Saoji, Sapna Bhat, Hitesh Manghnani, Somya Pathak. (2020). Profit Maximization in Bakery by Optimal Allocation of Raw Materials.
[5] Garba M. K., Banjoko A. W., Yahya W. B., Gatta N. F. (2020). On the Use of Linear Programming Model Approach in Profit Optimization of a Product Mix
Company.
[6] Naik Mahesh Sudhakar Dr., Desai Kruti, Lad Janhavi, Surve Vaishnavi, Bhatia Drishti. (2021). Enhancing the production in processin a bakery using
optimization techniques.
[7] Ruby Chanda, Vanishree Pabalkar, Sudeepa Gupta. (2022). A Study on Application of Linear Programming on Product Mix for Profit Maximization and Cost
Optimization.
[8] Umar, H. (2021). Profit Maximization using Linear Programming Technique.
[9] Oyekan Ezekiel A., Temisan Gabriel O. (2019). Application of Linear Programming to Profit Maximization.
[10] Egharevba, Aimuamwosa Julia, Ojekudo Nathaniel Akpofure. (2021). Optimal Raw Materials Mix through Linear Programming in Tehinnah Cakes and Craft.
[11] Nur Zafira Mohd Azman, Nurul Akmal Mohamed, Nurul Farihan Mohamed, Muzirah Musa . (2022). Application Of The Simplex Method On Profit
Maximization In Baker's Cottage.
[12] Safwa Mohd Baki, Jack Kie Cheng. (2021). A Linear Programming Model for Product Mix Profit Maximization in A Small Medium Enterprise Company.
[13] Amanawa, D. E. (2022). Linear Programming Utilization and Optimization of Raw Materials in Bread Baking Industry in Nigeria.
[14] Phanindra. G, Anitha Jandhyala. (2023). Optimizing cake production: a real-world application of linear programming for bakery efficiency.
[15] Pawan B V, Anitha Jandhyala. (2023). Profit Maximization For Bakery Products using Linear Programming Problem (LPP).

©IJRASET: All Rights are Reserved | SJ Impact Factor 7.538 | ISRA Journal Impact Factor 7.894 | 1755

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