Profit maximisation in food industry (Simbisa Brands) using linear programming
Munjeri, Conscience M.
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This work utilized the concept of Simplex algorithm; an aspect of linear programing to allocate raw materials to competing variables (small hake, regular hake and large) in Fish Inn for the purpose of profit maximization. The objectives of this research project were, to identify the resource requirements for each product, to identify other resource capital required, formulation of an LP model that will help to maximize profits and to find the optimal solution for the developed model. Primary and secondary data for the period January 2018 to June 2018 was used, and collected using interviews and reports generated from GAAP. TORA software was used to run data. The analysis was carried out and the result showed that 150 units of small hake, 0 unit of regular hake and 0 unit of large hake should be produced respectively in order to make a profit of $76.5 per batch of production and four or more batches are expected to be produced per day. From the analysis, it was observed that small hake, contribute objectively to the profit. Hence, more of small hake is needed to be produced and sold in order to maximize the profit. From the results I obtained I recommend that Fish Inn produces only small hake fish because it is the only one that is contributing to maximum profits of the brand KEYWORDS: Linear programming model, Simplex method, Decision variables, Optimal result