Strategic Allocation Of Material Resources For Optimal Business Performance

Abstract:

As a result of the growing competition within the food and beverage industry coupled with expectation of shareholders for profit maximization, managers are expected to continue to make quality decisions that will optimize product mix irrespective of the constraints posed by organizational resources. . It is against this premise that the study examined how these scarce resources can be strategically allocated for optimal business performance subject to material constraints. These data were then analysed through the linear programming solver software in order to allocate several raw materials to competing variables (croissant, small loaf, delight small and big, family loaf, special family loaf, sardine bread, wheat bread, coconut bread, chocolate bread and fruity bread). The study therefore revealed  that the Business Unit  should focus on producing 4361 units of family bread and 7700/47 units of small sardine bread to earn a profit  of N419998 at optimality. The study therefore recommends that the organization should focus on producing family loaf and small sardine bread in order to efficiently maximize profit.