Strategic Profit Maximization through Linear Programming in Wood Furniture Manufacturing

Strategic Profit Maximization through Linear Programming in Wood Furniture Manufacturing

Meghana.N1, Anitha Jandhyala2

1Student, BBA Department, PES University

2Associate Professor, BBA Department, PES University

PES University, Bengaluru Karnataka

ABSTRACT

The case study illustrates the use of Linear Programming Technique in optimizing the profits yield in the sales of the wooden furniture’s sold by Gajanana wood works. The data collected is a primary data which was collected manually from the owner of the firm.

A Linear Programming Problem (LPP) was formed with the help of the data collected along with the constraints. The constraints considered were sales expected per month for both cot and dining table, the capacity of the firm for producing the products in a month and the availability of the raw materials in the process. The objective function is to maximize the profit attained from the production. Data utilized to form the constraints include forecasted sales for the products and the procurement and optimum utilization of the resources. . The LPP hence formed was solved using 2 methods – graphical and simplex.

KEY WORDS: Simplex Method, Graphical Method, Linear Programming Problem (LPP), Constraints, Objective Function, Optimal Solution, Production Capability, Raw Materials, Feasible Region, Excel Solver, Maximization of profit.