APPLICATION OF LINEAR PROGRAMMING MODEL TO PROFIT MAXIMIZATION (A CASE STUDY OF THE BAKERY UNIT OF ROYALTY HOTEL)

Linear programming is an optimization technique in finding solution to managerial decisions making. Linear programming is a widely used mathematical modeling technique designed to help managers in planning and decision making relative to resource allocation. This study applied linear programming technique to decision making problem in royalty bakery, Eket. Akwa ibom state, Nigeria and intended to determine the types the quantity per type of baked product produced to maximize profits and also to obtain integer value for the quantity per type of baked products produced in a day to maximize profits, subject to constraints in the production process. The data used in this study is a secondary data. It was obtained from extract of the record of Royalty Bakery, Eket, Akwa ibom state. The problem was formulated in mathematical terms and solved using computer software known as TORA. The e solution obtained from the second iteration showed that 150 unit of fish roll and 50 unit of birthday cakes should be produced daily for the firm to achieve a maximum daily profit of N575,000. It is therefore recommended that the form should concentrate more on the production of fish roll and birthday cake to obtain maximum profit of N575,000 per day.