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Linear Optimization Techniques for Product-Mix of Paints Production in Nigeria

Author

Listed:
  • Sulaimon Olanrewaju Adebiyi

    (Business Administration Department, Federal University of Agriculture, Abeokuta)

  • Bilqis Bolanle Amole

    (Distance Learning Institute (DLI), University of Lagos, Nigeria)

  • Ismail Oladimeji Soile

    (PhD Student, CEPMLP, University of Dundee, Scotland, UK)

Abstract

Many paint producers in Nigeria do not lend themselves to flexible production process which is important for them to manage the use of resources for effective optimal production. These goals can be achieved through the application of optimization models in their resources allocation and utilisation. This research focuses on linear optimization for achieving product- mix optimization in terms of the product identification and the right quantity in paint production in Nigeria for better profit and optimum firm performance. The computational experiments in this research contains data and information on the units item costs, unit contribution margin, maximum resources capacity, individual products absorption rate and other constraints that are particular to each of the five products produced in the company employed as case study. In data analysis, linear programming model was employed with the aid LINDO 11 software to analyse the data. The result has showed that only two out of the five products under consideration are profitable. It also revealed the rate to which the company needs to reduce cost incurred on the three other products before making them profitable for production.

Suggested Citation

  • Sulaimon Olanrewaju Adebiyi & Bilqis Bolanle Amole & Ismail Oladimeji Soile, 2014. "Linear Optimization Techniques for Product-Mix of Paints Production in Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 1(1), pages 181-190, February.
    • Handle: RePEc:dug:actaec:y:2014:i:1:p:181-190
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    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/2018/2067
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    References listed on IDEAS

    as
    1. Jack Byrd, Jr. & L. Ted Moore, 1978. "The Application of a Product Mix Linear Programming Model in Corporate Policy Making," Management Science, INFORMS, vol. 24(13), pages 1342-1350, September.
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    Cited by:

    1. Solaja, Oluwasegun Abraham & Abiodun, Joachim Abolaji & Abioro, Matthew Adekunle & Ekpudu, Jonathan Ehimen & Olasubulumi, Olajide Moses, 2019. "Application of linear programming in production planning," MPRA Paper 98226, University Library of Munich, Germany.

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