APPLICATION OF INTEGER LINEAR PROGRAMMING IN PROFIT MAXIMIZATION (A CASE STUDY OF MUPHIDO RICE MILLING NIGERIA COMPANY LTD MILE SIX JALINGO, TARABA STATE).
Abstract
ABSTRACT
Profit maximization of products specifically rice, involves identifying and implementing strategies that optimize revenue generation and cost management to maximize profitability. Muphido Rice mill is one of the company that specialize on the production of parboil and White Rice from paddy Rice; however, the strategies of maximizing profit was not properly adhered. This study tends to schemes the standard for profit improvement and to explores the concept of profit maximization in industry, with a focus on rice production. It discusses key factors that impact profitability. Various strategies to achieve profit maximization are also examined, it also emphasizes on the significance of accurate market research and competitive pricing strategies to meet consumer demand and enhance profitability. Integer linear programing method was employed to solve problems involving maximization with a linear objective function subject to a set of linear constraints. In the context of profit maximization, Integer Linear programing result was that the optimal allocation of resources and activities to maximize overall profitability was that parboiled rice 3 and White Rice 15 which satisfy the integer condition. Thus, the Muphido Company may wish to produce the categories of rice in observing the ratio of 1:5. That is in every 1 bag50kg production of parboiled Rice, 5 bags of white Rice to be produced that will yield the company the total profit of N239,796 daily. The optimal solution had provided the optimal allocation of resources and activities which maximize profit. Overall, this research had provides an overview of the concepts and strategies involved in profit maximization in the agro-farm industry, specifically focusing on rice production. It emphasizes the importance of proactive decision-making, innovation, and sustainable practices to achieve optimum profitability in this sector therefore the management of Muphido Rice mill should undertake the strategies proffered by the model in other to maximize it returns.
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