Application of Linear Programming for Profit Maximization at Toprano Bakery, Benin City, Edo State, Nigeria

Abstract

Managerial decision-making problems with the distribution of scarce resources to maximize profit and minimize cost are commonly resolved by the application of an operation research technique known as linear programming. In order to calculate the profit of Toprano Bakery in Benin City, Edo State, Nigeria, using the linear programming technique, this paper focuses on the application of the optimization principle. Specifically, it analyzes the quantity of various raw materials used in production, analyzes production costs, and determines the selling price of raw materials that are available in stock. The study took into account the seven types of bread that the bakery produces: small bread, sardine bread, coconut bread, sliced bread, medium bread, and large bread. A model for the problem was established and optimum results were determined using Tora software and the Maple program that applied the simplex approach. The result suggests that medium bread contributes more to the profit made and hence should be produced more by the bakery.