The application of linear programming in profit maximization (A Case study of Blue Ribbon Foods Limited aka BRF Ltd)
Kutadzaushe, Tendai L.
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In an attempt to improve profit maximization efforts at Blue Ribbon Foods Limited, Linear Programming was adopted. The data used for analysis was collected from Blue Ribbon Foods Limited, Zimbabwe. The data was modelled to form an objective function and the subject constraints. The model generated was run using Linear Interactive Optimizer (LINDO) software. The results obtained from this study show an efficient production policy that maximizes profit generation at Blue Ribbon Foods Limited, Zimbabwe. Results of this study indicated that for the firm to attain the (objective function value) maximum monthly profit of $17,566.15 : BRF Self-Raising Flour (2KG)-X1 must be allocated an amount 511.289093kg, Bakers White (50KG)-X6 an amount 208.710922kg, Chibataura (10kg)-X10 an amount 561.487427 and Ngwerewere (10kg)-X17 an amount 8.512586. The researcher recommended management of BRF Ltd, Zimbabwe to allocate more time and resources to the production of BRF Self-Raising Flour (2kg), Bakers White (50kg), Chibataura (20kg) and Ngwerewere (10kg) than other products as results showed they contribute more to profit compared to other sales packages. Key Words – Profit Maximization, Linear Programming, Production Policy, LINDO