Allocation Organizational Resources for Production of Finished Good Inventories Using Linear Programming Model

Abstract:

As a result of the growing competition within the consumer goods industry coupled with expectation of shareholders for profit maximization, the decision of optimal product mix and allocation of resources falls on the managers so that customers expectations can be met. As a result of this, this study examined how organizational resources can be strategically allocated for optimal business performance subject to labour machine and material constraints. These data were then analyzed through the linear programming solver software in order to allocate several the firms resources to competing variables (sachet water, bottle water and dispenser). The study therefore revealed  that the Business Unit  should focus on invest 23.4 minutes of labour hours, 23.4 minutes of machine and 480 minutes of material. And the analysis recommends x1=0, x2=60, x3=0 should be produced.

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