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Optimal allocation of resources using sensitivity analysis in linear programming problem

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Abstract

Optimal allocation of resources using sensitivity analysis in linear programming problem. The study evaluated how the decision making process of bread producers can be influenced through optima allocation of raw materials and production of optimal quantities of product that will improve the profit margin of the companies. The study used the linear programming problem to model the data based on the materials involved in the production of three products and the average profit made from the process. The model solution was determined using the simplex algorithm method and it was revealed that in order to enhance maximum profit (N75,228.57) per 250kg of available flour, the manager should produce 2857 loaves of large loaves and 3286 pans of madiga and no medium sized bread should be made. In addition, the optimal resources to be allocated for the production process should be 250kg, 3.68kg, 30.5kg, 23.64kg, 1.78kg, 200ml and 0.71kg of flour, salt, yeast, sugar, preservative, flavor and EDC respectively. In essence, the production of bakeries can be optimized by adopting sensitivity analysis in linear programming in Nigeria...

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