Simplex Optimization of Production Mix: A Case of Custard Producing Industries in Nigeria
Sinebe, J. E; Okonkwo, U. C.; Enyi, L. C

Abstract
The study used two custard producing industries, LCI and KFGI as case studies in which time study of their various kinds of labour in custard production as well as the associated sizes of custard and costs were analysed. With the obtained results, a mathematical model was set up using simplex method in which the problem was converted into its standard form of linear programming problem. Simplex method of optimization was used in determining the optimal production proportion and profit margins. The case study of LCI results gave an optimal production mix of 45.8%, 39.6% and 14.6% for large, medium and small sized custard, respectively, with an increase in profit margin to 49.8% translating into N728,142:00 for the month of March, 2013. Similarly, KGFI have an optimal production mix of 43.5%, 36.5% and 20% for large, medium and small sized custard with an increase in profit margin to 51.5% translating into N 905,423.00 for the month of August, 2013.

Full Text: PDF