ISSN 2321 3361 © 2019 IJESC

Research Article Volume 9 Issue No.11

Application of Linear Programming to Analyze Profit of Food

Complex Factory, in the Case of Yetebaberut Food Complex Factory,
at Robe Town
Shiferaw Geremew Kebde1, Dereje Legesse Abaire2, Leta Bekere Kumssa3, Tesfu Belachew Dadi4, Awel Seid Gelatie5,
Mekonnen Gudeta Gizaw6
Department of Mathematics
MaddaWalabu University, Bale Robe, Ethiopia

Abstract:
The purpose of this study was to analyze the total production and profit of Yetebaberut food complex factory located in Ethiopia,
Oromia regional state, Bale zone, Robe town, by applying linear programming. A factory is situated within Robe town about 430 KM,
from Addis Ababa (Capital of Ethiopia). The study incorporates different steps; the first step comprises data generation. A Primary
data collected from factory staffs; executive managers, co-managers, sellers, machine operators and technician to determine the
production, sales, and profit during five months of November 30, 2018- June 18, 2019 and modeled in to the mathematical form of a
linear programming model. Finally, a modeled data is solved by the method of AMPL software. Such that, depending on the empirical
results (solutions) of a modeled data, some conclusive observations have been drawn and recommendations have been suggested.

Keywords: Analysis of total product and profit, Mathematical model of the data and Empirical result.

I. INTRODUCTION cost) by using linear programming under specific settings and

constraints. While linear programming is mainly used in
1.1. Background of the Study management and economics, it can also be utilized for some
Linear Programming (LP) is a problem-solving approach engineering problems. Linear programming uses a mathematical
developed to help managers make decisions. Numerous model to describe the problem of concern. Thus, linear
applications of linear programming can be found in today’s programming involves the planning of activities to obtain an
competitive business environment Anderson [1]. The term linear optimal result, i.e. a result that reaches the specified goal best
programming was first used by G.B. Dantzig [2] in 1947 to refer (according to the mathematical model) among all feasible
to specific problems of optimization which assume that both alternatives. Although allocating resources to activities is the
constraints and objective function are linear. As with other most common type of application, linear programming has
branches of Operations Research, the first applications of LP are numerous other important applications as well. Any problem
found in military planning activities, how to distribute men, whose mathematical model fits the very general format for the
weapons, and supplies efficiently to the various fronts during linear programming model is a linear programming problem.
World War II. (Here, the word programming means creating a Furthermore, a remarkably efficient solution procedure, called
plan that solves a problem; it is not a reference to computer the simplex method, is available for solving linear programming
programming.) Soon after that, LP came into wide use in problems of even enormous size. As stated above, linear
industry, with the most fruitful utilization in the petroleum, programming was developed as a mathematical pattern during
petrochemical and food industries (extensive references can be World War II to plan expenditures and returns to reduce costs to
found in Dantzig [2] and [3]. Linear Programming is not a new the army and increase losses to the enemy. The method was kept
modeling technique: it has been used routinely for over forty secret until 1947. After the war, many industries began using it.
years to describe different productive and economic systems, The founders of linear programming are: G.B. Dantzig who
and also problems in scheduling and distribution. The published the simple method in 1947, John von Neumann who
mathematics of linear programming is well established and developed the theory of duality, and Leonid Kantorovich - the
presented in several books. Linear programming is one Russian mathematician who applied similar techniques before
specialized mathematical decision-making aid. It can be applied Dantzig and won the Noble Prize in 1957. The Babcock and
to many problems in the real world, not because the world is Wilcox applied the linear programming to help plan a major
linear but because it is a powerful problem-solving technique. expansion of the company's Tubular Products Division (TPD) in
Linear programming or linear optimization is a mathematical Pennsylvania. Owen [5] has also used the linear programming
method to achieve the minimum or maximum value of a linear method to design antenna array patterns that suppress
function on a convex polyhedron. This convex polyhedron is, in interference from certain directions. Optimization is a general
fact, a graphical representation of some constraints as term used to describe types of problems and solution techniques
inequalities on/off functional variables. To put simply, one can that are concerned with the best ("optimal") allocation of limited
achieve the best outcome (e.g. maximum profit or minimum resources in projects. The problems are called optimization

IJESC, November 2019 24146 http:// ijesc.org/

problems and the optimization of the method methods. Typical made, the net earnings of the business depend largely upon the
problems are concerned with planning and making decisions, operational decisions of management. Frequently the factors
such as selecting an optimal production plan. A factory has to which need to be taken into account in making operational
decide how many units of each product from a choice of decisions are so numerous and complex that they cannot all be
(distinct) products it should make. The objective of the factory considered simultaneously, even by the most capable general
may be to maximize overall profit when the different products manager. Even though, Yetebaberut food complex factory which
have different individual profits. Also, the factory faces certain is located in Robe town in the area reached by Wheat. However,
limitations (constraints). It may have a limited number of the people's demand and the price of the distinct products of the
machines and usage of these machines takes a certain amount of factory does not meet each other. Especially, the prices in which
time to make a product, it requires a certain number of workers the peoples purchase the products of this factory are very
to handle the machines, and other possible criteria. To solve such expensive (luxurious). So, the technique of linear programming
a problem, we assign the first variable to the number of units to is one possible method which might be used to organize and
be produced of the first product, the second variable to the consider simultaneously the pertinent information for operational
second product, up to the number of different (distinct) products decision. Production is well suited to this type of problem and
the company makes. When we multiply these, for example, by will assure an optimum solution based on the coefficients and
the price, we obtain a linear function called the objective restrictions used for the solution. The technique of linear
function. We also express the constraints in terms of these programming to an operating production firm is to determine the
variables, thereby obtaining several inequalities, called the problem facing them to analyze the total production and profit to
constraints. Because the variables in the objective function also satisfy the need of their customers by increasing supply and
occur in the constraints, the objective function and the optimizing cots. It was felt that if linear programming could be
constraints are tied mathematically to each other and we have set used by management to increase the total production and profits
up a linear optimization problem, also called a linear of a factory, benefits would accrue to peoples surrounding as
programming problem. well as to the feed industry.
1.2. Statement of the Problem 1.3. Significance of the Study
Linear programming is a set of techniques and methods inferred It helps to understand the best way of making decisions using
from mathematics and other sciences which can play an efficient quantitative models to determine its optimal product-mixes that
role in improving the management decisions. Although it is still can maximize its profits subject to the scarce resources it has.
regarded as a new science, it has well proved to be capable of The study will provide a deep understanding and insight into the
solving problems such as production planning, allocating applications of linear programming models in the factory and
resources, inventory control, and advertising. Those managers how to apply such models in practical and real-world experience.
who care about the best outcomes for their decisions cannot be To other researchers of similar interests who are willing to
indifferent to this. Wijeratne and Harris proposed that the linear undertake a further investigation on the topic, this research
programming model is used by the managers to determine the document can be used as a secondary information source. This
most economical arrangement of finance, to arrange the best study was conducted for three reasons. Firstly, there was no
times to start and finish projects, and to select projects to reliable and comprehensive study to examine the role of linear
minimize the total net present cost of capital. Linear programming in factories in Ethiopia. Secondly, it might pave
programming optimizes (maximizing or minimizing) a the way forward for the factory, policymakers, and financial
dependent variable subject to a set of independent variables in a institutions to under- stand the different roles of institutions in
linear relationship, given many linear constraints of independent the development process. Finally, this study advances the
variables. The value of dependent variables which is the value knowledge of linear programming in decision making. The study
obtained from solving the problem is subject to the independent contributes to a factory has to decide how many units of each
variables set by the decision-maker (or determined by solving product from a choice of (distinct) products it should make to
the problem). The dependent variables are usually set as an maximize its profit. Since the objective of the factory is to
objective function which may be one of the economic concepts maximize overall profit. Facing the factory and give the possible
such as profit, cost, income, production, sales, distance and time. solution to optimize their profit and meet the need of their
The independent variables in linear programming are known as customers and the peoples surrounding them by their supply and
variables of unknown value, and the decision-maker has to price optimization.
calculate the value of such variables by solving the problem. In
Ethiopia, most decisions were taken by a government or non- 1.4. Objectives of the Study
governmental organizations, whether it is profitable or not for The general objectives of this paper are:
companies, manufacturing or service industries are based on trial To formulate a linear programming model that would suggest a
and error. Qualitative decisions, like intuition, judgmental viable product mix to ensure optimum profit for Yetebaberut
approaches are more dominant and the application of model- food complex factory. Accordingly, the following specific
based decision making like optimization techniques. Linear objectives are drawn to address the study: To highlight the
programming models have little or no application. Hence, it is peculiarities of using a linear programming technique for
initiated by the author to conduct an assessment of the Yetebaberut food complex factory and prove that despite
application of linear programming in this particular factory as a obstacles, the application of the technique in determining the
case study. The level of profits achieved in any factory depends product-mix of the factory would be more profitable than
upon the operational decisions as well as upon the long run otherwise.
decisions for the business. Once such decisions as factory To analyze the total production and profit of this factory by
location, type of factory and organizational structure have been modeling the collected data in to linear programming

IJESC, November 2019 24147 http:// ijesc.org/

To analyze their current production and sold products of this utilizing locally available wheat the paper was based on primary
factory by modeling the collected data to linear programming and secondary sources of data. Especially to get information on
To analyze problems decreasing their total production and the decision making practice of the factory understudy, an
profits of this factory by modeling the collected data to linear interview was conducted with the manufacturing manager, co-
programming managers, persons working on Machine, laboratory and
electricity technician, labor workers and the sales managers of
1.5. Research Questions the factory and data collected on the unit costs of production of
In this study, the following research questions are posed to the products, the unit selling price of the products and also
be addressed: contacted the sales and the purchasing, production and
How the factory manage it's Manpower, time allocated and their marketing managers of the factory. The secondary data sources
duty (responsibility) machine per day? were obtained from document analysis of the factory production
Whether the current method adopted in making a decision is from their establishments up to now. And additionally,
effective or not? secondary data sources were used to get accurate information.
Whether the resources available are sufficient for the production
of the products to satisfy the demands of the customers? 2.2.2Method of Data Analysis
How is the factory currently deciding on the allocation of Collected data were presented in a narrative form and modeled
resources for the production of its Products to maximize its sales to mathematical form, particularly modeled to linear
and profit? programming. Since the purpose of this study was to develop a
Whether the factory uses qualitative decisions or employs linear programming model for the collected data of the factory,
mathematical/statistical models or both? the researchers tried to transform the data into a linear
programming model and solve the model (problem) using
1.6. Limitation of the study simplex algorithm or by using AMPL software or MS-Excel
To delimit the research problem in scope, the objective was solver in order to analyze total production and profit of the
limited to the formulation and solution of a linear programming factory within the available scarce resources. The software
model to determine; what production formulas should be AMPL was preferred (purposely selected) for accuracy purposes
produced and sold. This study will be delimited to the and easy to use in the solution (to analyze) the mathematical
Yetebaberut food complex factory at Robe Town, which is modeled data with single inequalities and limited constraints.
selected purposefully as a study area for this research. Since the Also, the Simplex algorithm was preferred over a graphical
factory produces distinct products; the Literature cited suggests approach because this method can help to solve linear
that Linear Programming techniques can be beneficial in programming problems of any number of decision variables.
minimizing production costs to realize larger profits.
2.2.3. Linear programming problem Model
2. METHODOLOGY Linear Programming is a mathematical technique for generating
and selecting the optimal or the best solution for a given
2.1. Study area objective function. Technically, linear programming may be
The study was conducted on the Yetebaberut food complex formally defined as a method of optimizing (i.e. maximizing or
Factory, which is located in Robe town, Bale zone, Oromia minimizing) a linear function for many constraints stated in the
Region of Ethiopia. In Robe town, there are three Flour Factories form of linear inequalities.
are their; Yadot our factory, Senate our factory and Yetebaberut
food complex Factory. Hence, the Yetebaberut food complex 2.2.4. Basic Requirements for the use of a linear program
factory is selected purposefully to conduct this research. Since, ming Technique
Yetebaberut food complex factory is producing distinct products To solve some problems using the linear programming approach,
like; Flour, different kinds of Macaroon which is suitable for the some basic conditions must be met. These requirements can be
application of linear programming to analyze profit and grouped into two main categories, namely the components and
production. The Literature cited suggests that Linear assumptions of the linear programming model. The components
Programming techniques can be beneficial in minimizing can be grouped into 4 major categories. They are the objective
production costs to realize larger profits. Yetebaberut food function, the decision variables, constraints, and the parameters.
complex factory was established in 2010. The factory has around These are brief discussed below:
226 man powers and three functional machines that can operate
Objective Function: The linear programming problem must
for 24 hours per day. One machine is Macaroon producing
have a quantitatively specified linear objective function or
machine and the left to two are producing distinct products type
criterion to be optimized. For example, one may wish to
of Flour; Hard Flour and Soft Flour. Therefore, the study is
optimize returns on investments, productivity, profit, costs, etc.
designed to contribute to the priority area to analyze total
This is done by either maximizing or minimizing the objective
production and profit of this factory to meet the need of its
function. The objective of the problem must first be identified
customers and the peoples surrounding them by their supply and
and then translated into a mathematical function to assess the
price optimization. Hence, the targeted research population is
degree of effectiveness of the system. The aim is to find the
127 persons are selected; those have direct influence (factors) on
optimal value of the objective function.
the production of this factory.
2.2.Sampling Techniques (Design) Decision Variable: These are the unknown variables to be
2.2.1 Method of Data Collection computed in the models. Decision variables, represent choices
To gather the relevant data from the factory producing four that are available to the decision-maker and are measured in
different Macaroons, two different types of fours and wheat meal terms of inputs or outputs.

IJESC, November 2019 24148 http:// ijesc.org/

Decision variables can be represented by unit power of alphabets Yetebaberut Food Complex factory. The formulation of a linear
like 𝑥1 , 𝑥2 , 𝑥3 , … , 𝑥𝑛 or 𝑥; 𝑦; 𝑧 etc .If 𝑥1 , 𝑥2 , 𝑥3 , … , 𝑥𝑛 are programming system is required to analyze the potential impact
decision variables and P is the profit to be maximized, then the of changes in wheat costs. The system also requires that capacity
objective function can be expressed as; P = 𝑎1 𝑥1 + 𝑎2 𝑥2 + of machine production per day, man-hour available per day and
𝑎3 𝑥3 + … + 𝑎𝑛 𝑥𝑛 the selling capacity (demand for their products) per day be
specified. This section is divided into two sections. The first
Structural constraints: Decision problems involving the use of section presents a discussion of the linear programming of
a linear programming technique usually require the optimization Products produced in ton and profit model, the Man-power
of limited resources. These limited resources are expressed as model and the market model of Yetebaberut Food complex
constraints in a linear programming problem. The constraints factory. The second section details sources, assumptions, and
limit the value of decision variables in the objective function. processes used in collecting and deriving the data used in the
The constraints are represented as a linear equation or linear research.
inequalities.
3.1. Computations for manufacturing Coefficients
Parameters: A linear programming model has both the The manufacturing coefficients were taken from oral data given
mathematical statement of the objectives as well as that of the by the machine operator, salesman, manager, and co-manager of
constraints. These mathematical statements contain symbols the two factories. The machine operators gave the number of
representing the decision variables and also numerical values in tons per hour which could be run through each of the machines
the form of constants called parameters. for each Product. The salesman gave the number of soled
products and their profits, whereas the manager and co-managers
2.2.5. Formulation of a linear programming model gave general information about their factory production and
Many linear programming problems are not stated in profits from their record.
mathematical forms. They'll need to be formulated as a linear
programming problem using the following steps: First, list and 3.2.Mathematical Model of factory
define the decision variables. Second, state the objective The models of Products in ton and the profit of Yetebaberut
function to be optimized and identify the constraints on one or Food Complex factory contains the cost of wheat, manpower and
more variables. Third, write the mathematical expression capacity of machine production per day in the production of
relating the terms and the constraints using the appropriate different products Flour, Macaroon, and wheat meal (Animal
relational signs. Fourthly, express the non negativity constraints feed). Inequality constraints are specified quantity of our
mathematically. This enhances the feasibility of the solution. products, the quantity of macaroon produced and the quantity of
Thus, the general form of a linear programming model with 𝑛 wheat meal (animal feed) produced. The profits obtained from
decision variables and 0n0 constants are given as follows: each product constraints specify maximum available production.
To produce these products, it requires different materials in
Maximize P = 𝑎1 𝑥1 + 𝑎2 𝑥2 + 𝑎3 𝑥3 + … + 𝑎𝑛 𝑥𝑛 different combinations. It requires Flour producing and
Macaroon producing machines, skilled and unskilled labor and
Subject to: 𝑏11 𝑥1 + 𝑏21 𝑥2 + 𝑏31 𝑥3 + … + 𝑏𝑛1 𝑥𝑛 ≤ 𝑑1 raw materials. But for this research work, we shall concentrate
on raw materials, available manpower, and machine hours
𝑏12 𝑥1 + 𝑏22 𝑥2 + 𝑏32 𝑥3 + … + 𝑏𝑛2 𝑥𝑛 ≤ 𝑑2 needed for production and their product supply and market of the
factory from November 30, 2108, to June 18, 2019. Other factors
… … … are held constant. The major raw materials used for the
𝑏1𝑚 𝑥1 + 𝑏2𝑚 𝑥2 + 𝑏3𝑚 𝑥3 + … + 𝑏𝑚𝑛 𝑥𝑛 ≤ 𝑑𝑚 production of the above products include Hard Wheat and Soft
With, 𝑥1 , 𝑥2 , 𝑥3 , … , 𝑥𝑛 ≥ 0 . Wheat. The raw materials are mixed in different proportions and
as such take different percentages of the production costs.
3. MODEL AND DATA DESCRIPTION Yetebaberut the food complex aimed to produce three distinct
products by allocating 620 hours per month, accordingly, to
The principal objective of the research is to the analysis of the produce Macaroon, Flour and Wheat meal as summarized in
interaction between production rates and profit of the table (3.1 and 3.2) below.

Table.3.1. Current and average capacity production of Yetebaberut Food complex factory
Product type Current production in ton per month the capacity of production in ton per
month
Macaroon 1330.29 2328
Flour 1180.2 1287.6
Wheat meal 319 348
Total product 2829.49 3963.6

Table.3.2. Sold products and profit of each product Yetebaberut Food complex factory
Product type Sold products in ton per month Profit per ton
Macaroon 625.2363 800 Birr
Flour 1062.18 650 Birr
Wheat meal 299.86 1086 Birr

IJESC, November 2019 24149 http:// ijesc.org/

The demand for each product Yetebaberut food complex factory in percent and the ton is given in table (3.3) below.

Table.3.3. Average demand for each product of Yetebaberut food complex factory
Demand for the products Type of product Demand in (%) Demand in ton
Macaroon 47% 625.2363
Flour 90% 1,062.18
Wheat meal 94% 299.86

The question facing the factory is as follows: If 620 hours of produced and 𝑥3 for the number of tons of Wheat meal. The
production time are available per month, how many tons of total hour to produce all these tons is then given by:
Macaroon, Flour and wheat meal should be produced to bring (Hours to make a ton of Macaroon) × 𝑥1 + (hours to make a ton
maximum total profit? While we are given numeric values for of Flour) × 𝑥2 + (hours to make a ton of Wheat meal) × 𝑥3 .
production rates and per-unit profits, the tons of Macaroon, This number cannot exceed 620 hours. Since month per ton is
Flour, and wheat meal to be produced are as yet unknown. These the reciprocal of the tons per month given above, we have a
quantities are the decision variables whose values we must constraint on the variables:
determine to maximize profits. The purpose of the linear Thus we can write mathematically as follows:
program is to specify the profits and production limitations as 1 1 1
𝑥1 + 𝑥2 + 𝑥 ≤ 620
explicit formulas involving the variables so that the desired 1330.29 1180.2 319 3
values of the variables can be determined systematically. Hence, 100 10 1
⇔ 𝑥 + 𝑥 + 𝑥 ≤ 620
from the given information in the tables above: (table 3.1, 3.2 133029 1 11802 2 319 3
and 3.3) Yetebaberut Food complex factory production is There are also production limits:
modeled by using linear programming as follows. In an algebraic 0 ≤ 𝑥1 ≤ 1330.29
statement of a linear program, it is customary to use 0 ≤ 𝑥2 ≤ 1180.2
mathematical shorthand for the variables. Thus we will write 𝑥1 0 ≤ 𝑥3 ≤ 319
for the number of tons of Macaroon to be produced, 𝑥2 for the Since our objective is to maximize profit 800𝑥1 + 650𝑥2 +
number of tons of Flour to be produced and 𝑥3 for the number of 1086𝑥3 . Putting this all together, we have the following linear
tons of Wheat meal. The total hour to produce all these tons is program:
then given by: 𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑃 = 800𝑥1 + 650𝑥2 + 1086𝑥3
(Hours to make a ton of Macaroon) × 𝑥1 + (hours to make a ton 1 10 1
𝑆𝑢𝑏𝑗𝑒𝑐𝑡 𝑡𝑜: 𝑥 + 𝑥 + 𝑥 ≤ 620
of Flour) × 𝑥2 + (hours to make a ton of Wheat meal) × 𝑥3 . 1330.29 1 1180.2 2 319 3
This number cannot exceed the 620 hours available. Since month 0 ≤ 𝑥1 ≤ 1330.29
per ton is the reciprocal of the tons per month given above, we 0 ≤ 𝑥2 ≤ 1180.2
have a constraint on the variables: 0 ≤ 𝑥3 ≤ 319
Thus we can write mathematically as follows: 𝑥1 ≥ 0, 𝑥2 ≥ 0 , 𝑥3 ≥ 0
1 1 1 Again, due to a market problem, this factory averagely was
𝑥1 + 𝑥2 + 𝑥 ≤ 620
2328 1287.6 348 3 selling 625.2363, 1062.18 and 299.86 tons of Macaroons, Flour
1 10 1 and Wheat meal respectively per month. Total sold tons for each
⇔ 𝑥 + 𝑥 + 𝑥 ≤ 620
2328 1 12876 2 348 3 product is given by:
There are also production limits: (Sold tons of Macaroon) × 𝑥1 + (sold tons of Flour) × 𝑥2 + (sold
0 ≤ 𝑥1 ≤ 2328 tons of Wheat meal) ×𝑥3
0 ≤ 𝑥2 ≤ 1287.6 Such that, this number cannot exceed 300 since the sellers are
0 ≤ 𝑥3 ≤ 348 working for 10 hours per day. And since month per ton is the
Hence, our objective is to maximize profit 800𝑥1 + 650𝑥2 + reciprocal of the tons per month given above, we have a
1086𝑥3 . Putting this all together, we have the following linear constraint on the variables;
program: 1 1 1
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑃 = 800𝑥1 + 650𝑥2 + 1086𝑥3 𝑥1 + 𝑥2 + 𝑥 ≤ 300
625.2363 1062.18 299.86 3
1 10 1 There are also sold products limits:
𝑆𝑢𝑏𝑗𝑒𝑐𝑡 𝑡𝑜: 𝑥 + 𝑥 + 𝑥 ≤ 620
2328 1 12876 2 348 3 0 ≤ 𝑥1 ≤ 625.2363
0 ≤ 𝑥1 ≤ 2328 0 ≤ 𝑥2 ≤ 1062.18
0 ≤ 𝑥2 ≤ 1287.6 0 ≤ 𝑥3 ≤ 299.86
0 ≤ 𝑥3 ≤ 348 So, our objective is to maximize profit 800𝑥1 + 650𝑥2 +
𝑥1 ≥ 0, 𝑥2 ≥ 0, 𝑥3 ≥ 0 1086𝑥3 . Putting this all together, we have the following linear
Even though, this factory aims to produce above indicated a total program:
ton per month. Currently, this factory is producing less than their 𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑃 = 800𝑥1 + 650𝑥2 + 1086𝑥3
plan as indicated in (table 3.2 and 3.3) per month due to three 10000 100 100
𝑆𝑢𝑏𝑗𝑒𝑐𝑡 𝑡𝑜: 𝑥1 + 𝑥2 + 𝑥 ≤ 300
basic problems facing the factory. Due to an insufficient electric 6252363 1062.18 29986 3
power problem, they are producing 1330.29, 1180.2 and 319 0 ≤ 𝑥1 ≤ 625.2363
tons of Macaroons, Flour and Wheat meal respectively per 0 ≤ 𝑥2 ≤ 1062.18
month. Now, let denote 𝑥1 for the number of tons of Macaroon 0 ≤ 𝑥3 ≤ 299.86
to be produced, 𝑥2 for the number of tons of Flour to be 𝑥1 ≥ 0, 𝑥2 ≥ 0 , 𝑥3 ≥ 0

IJESC, November 2019 24150 http:// ijesc.org/

3.2.1.Empirical Results (solution) of total capacity product in function was to analyze their production and profit of this
ton and pro_t by using AMPL Software factory per month. The maximized objective function value
ampl: var X1; # amount of X1; reflected the profit of distinct products sold. Results indicated
ampl: var X2; # amount of X2; that three basic problems were influencing the production
ampl: var X3; # amount of X3; capacity and profit of Yetebaberut food complex factory.
ampl: maximize Profit: 800 * X1 + 650 * X2 +1086 * X3; 1. The first factor that affected the production capacity and profit
ampl: subject to time: (1/2328) * X1 + (10/12876) * X2 +(1/348) of this factory is the Electricity power problem. Due to
* X3 <= 620; insufficient Electric power, Yetebaberut food complex factory
ampl: subject to X1_limit: 0 <= X1 <= 2328; lost 1134.11 ton of total products and 899,472 Birr profit per
ampl: subject to X2_limit: 0 <= X2 <= 1287.6; month.
ampl: subject to X3_limit: 0 <= X3 <= 348; 2. The second basic problem that influenced the production and
ampl: solve; profit of this factory was the Market. The problem of market
MINOS 5.51: optimal solution found. reduced the production of this factory to 842.2137 ton and lost a
3 iterations, objective 3,077,268 profit of 661,542 Birr per month. As the findings of the research
ampl: display X1, X2, X3; revealed their market problem stems from unskilled manpower
X1 = 2328 and the absence of a research-based plan of the factory on their
X2 = 1287.6 market management. Again the impact of Electric power and
X3 = 348 market problem influenced the production hours of this factory
to limited hours per day. But, their machine can produce 24
3.2.2. Empirical Results (solution) of total current product hours per day continuously.
in ton 3.The third factor that affected the production capacity and profit
ampl: var X2; # amount of X2; of this factory was the quality of wheat. The quality of wheat
ampl: var X3; # amount of X3; reduced the total production of this factory to 26.794 tons and
ampl: maximize Profit: 800 * X1 + 650 * X2 +1086 * X3; lost a profit of 18, 806.94 Birr per month. The problems stem
ampl: subject to time: (100/133029) * X1 + (10/11802) * X2 from their market management and farmers. Because now a day
+(1/319) * X3 <= 620; farmers supply their wheat to market soon harvesting from their
ampl: subject to X1_limit: 0 <= X1 <= 1330.29; farmland to sale. However, it has a great impact on the quality of
ampl: subject to X2_limit: 0 <= X2 <= 1180.2; wheat. The Wheat is supplied to the factory with Straw (oversize
ampl: subject to X3_limit: 0 <= X3 <= 319; waste) and weed (unwanted plant seed). In general, Yetebaberut
ampl: solve; food complex lost a total product of 2003.1177 ton and lost a
MINOS 5.51: optimal solution found. profit of 1,569,820.94 Birr per month. As a result, this factory is
3 iterations, objective 2,177,796 currently selling 1987.2763 tons from its production and gaining
ampl: display X1, X2, X3; a profit of 1,389,844.04 Birr per month.
X1 = 1330.29
X2 = 1180.2 4.2. Recommendation
X3 = 319 Linear programming seems to be a very effective way to
3.2.3.Empirical Results (solution) of total sold products in transform data into valuable information to support daily
ton decision making regarding production planning. In this research,
ampl: var X1; # amount of X1; a linear programming model has been applied to the
ampl: var X2; # amount of X2; determination of an optimal production plan for three different
ampl: var X3; # amount of X3; product of Yetebaberut food complex factory by analyzing sales
ampl: maximize Profit: 800 * X1 + 650 * X2 +1086 * X3; revenue. The general public does not seem to understand nor
ampl: subject to time: (10000/6252363) * X1 + (100/106218) * appreciate the contributions of operations research and its
X2 +(100/29986) * X3 <= 300; component studies on programming techniques on the decision-
ampl: subject to X1_limit: 0 <= X1 <= 625.2363; making process. This will evolve a culture of record-keeping and
ampl: subject to X2_limit: 0 <= X2 <= 1062.18; statistics, thereby reducing the need to resort always to
ampl: subject to X3_limit: 0 <= X3 <= 299.86; qualitative decision making in preference for a more informed
ampl: solve; and quantitatively backed decision-making process. Applying
MINOS 5.51: optimal solution found. this method enhances the decision making of managers,
3 iterations, objective 1,516,254 especially where there are restrictions or constraints in the
ampl: display X1, X2, X3; decision-making process. Hence, depending on empirical results
X1 = 625.236 (solution) obtained (conclusive observations have been drawn)
X2 = 1062.18 by applying linear programming to analyze the production and
X3 = 299.86 profit of the factory, three basic recommendations have been
suggested as follows;
4. CONCLUSION AND RECOMMENDATION
1.To improve its Electric power, the owner of the factory or
4.1.Conclusion: The research took the existing market structure factory manager must have to contact with electric power station
and then determined the optimal profit and the products within to get a fixed unique electric line.
the existing system. Results generated by the base model 2.To improve their market problem, their market management
described reviewing types of production, sold products and must have to be managed by skilled manpower and have to have
gained profit from each product. The base model objective

IJESC, November 2019 24151 http:// ijesc.org/

a research-based plan. Such that this factory has to employee
skilled manpower who have a deep concept about business and
their market departments have to differentiate which constraints
affect their production and profit and must have a continuous
plan based on mathematically computed.
3.To keep the quality of Wheat they have the authority to buy
the best quality of wheat and notice their wheat suppliers to keep
the quality wheat by the suppliers to avoid Straw (oversize
waste) and weed (unwanted plant seed) during their production
before they can supply for the market.
In general, the managers and salesmen of the factory are must
have to use techniques of linear programming in their operating
production firm and planned to depend on mathematically
computed data, to determine the problem facing them to
maximize their total production and profit. Such that the total
production and profits of the factory were increased and benefits
would accrue.

5. REFERENCES

[1]. Anderson, D.R.; Sweeney, D.J.; Williams, T.A.; Camm,

J.D.;and Kipp, Martin:An Introduction to Management Science:
Quantitative Approaches to Decision Making, Revised 13th ed.,
South-Western Cengage Learning, 2012Agutter, A.J. (1995).

[2]. Dantzig G.B., Programming of interdependent activities: II

Mathematical Model, Econometrica, 17 (3), pp. 200211, 1949.
doi:10.2307/1905523

[3]. ABEL, D. B. 1971: The location of exotic forest resources

and wood- processing industries in New Zealand. Unpublished
M.A. thesis, University of Auckland

[4].Owen, P. and Mason, J.C.: The use of linear programming

the design of antenna pattern with prescribed nulls and other
constraints, compel: The International Journal for Computation
and Mathematics in Electrical and Electronic Engineering, 3(4),
pp.201-215, 1984

[5]. Barciok, H., Kohler, J. and Rauschenbach, R. 1965: The

determination of optimum sites for and optimum productive
capacities of sawmills, with special regard to the transport of
sawlogs and lumber. Archiv fur Forstwessen14: 849-64

[6]. Wijeratne, N. and Harris, F.C. Capital budgeting using a

linear programming model, International Journal of Operations
and Production Management, 4(2), pp.49-64, 1984

[7]. Wood, M.K., and Dantzig, G.B. Programming of

interdependent activities: I General Discussion. Econometrica,
17 (3/4): 19391949. JS-TOR1905522

IJESC, November 2019 24152 http:// ijesc.org/