Linear Programming Model

This paper examines product mix optimization in the manufacturing industry using linear
programming approach. Guinness Nigeria Plc, Benin was understudied. The company was
chosen because it deals on different products which make the determination of the quantity
combinations of the products produced and sold an important and major management
decision. Thirteen products of the company (Dubic Malt, Guinness Stout (Medium), Harp,
Herbal Malt, Malta Guinness, Orijin Herbs, Orijin Bitters, Orijin Zero, Satzenbrau, Smirnoff
Double Black, Smirnoff Ice, Snap and Tappers) were sampled for the study. Data were
sourced from the records of the company. Linear programming of the operations of the
company was formulated and optimum results derived using Linear Programming Software
(Lips) that employed simplex method. Based on the data collected and analyzed, it was
discovered that, given the amount of materials available, the company should produce all the
products in order to satisfy its customers but more of Satzenbrau should be produced in order
to attain maximum profit because they contribute most to the profit earned. It is therefore
recommended that any product having an adverse effect or contributing losses to the profit
margin of the company can be stopped and the company can focus on those that can generate
more profit.