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Case Study On Linear Programming Using Excel Solver

we had a college project wherein we had to solve a LPP using excel solver. We took up a real life problem whose solution we had to obtain using excel solver.

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Aashi Anand
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257 views

Case Study On Linear Programming Using Excel Solver

we had a college project wherein we had to solve a LPP using excel solver. We took up a real life problem whose solution we had to obtain using excel solver.

Uploaded by

Aashi Anand
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 6

Case Study on Liner Programming

Using Simplex method in excel solver

Gorretta bakery limited, Nigeria

For..
Quantitative Techniques of Management

By- Himanshu Tywal 17026


Aashi Anand 17169
Neha Shersia 17158
Application of Linear Programming for Optimal Use of Raw
Materials in Bakery

Assumptions
 It is assumed that the raw materials required for production of bread are limited (scarce)
 It is assumed that an effective allocation of raw materials to the variables (big loaf, giant loaf and small
loaf) will aid optimal production and at the same time maximizing the profit of then bakery.
 It is assumed that the qualities of raw materials used in bread production are standard (not inferior).

Data Presentation and Analysis


The data for this research project was collected from Gorretta bakery limited, Nigeria. The data consist
of total amount of raw materials (sugar, flour, yeast, salt, wheat gluten and soybean oil) available for daily
production of three different sizes of bread (big loaf, giant loaf and small loaf) and profit contribution per each
unit size of bread produced.The data analysis was carried out with TORA software(version 2.0). The content of
each raw material per each unit product of bread produced is shown below.

Flour
Total amount of flour available = 200kg
Each unit of big loaf requires 0.2kg of flour
Each unit of giant loaf requires 0.24kg of flour
Each unit of small loaf requires 0.14kg of flour

Sugar
Total amount of sugar available = 160g
Each unit of big loaf requires 0.14g of sugar
Each unit of giant loaf requires 0.20g of sugar
Each unit of small loaf requires 0.16g of sugar

Yeast
Total amount of yeast available = 20kg
Each unit of big loaf requires 0.02kg of yeast
Each unit of giant loaf requires 0.02kg of yeast
Each unit of small loaf requires 0.02kg of yeast

Salt
Total amount of salt available = 8.5g
Each unit of big loaf requires 0.0011g of salt
Each unit of giant loaf requires 0.00105g of salt
Each unit of small loaf requires 0.00017g of salt

Wheat gluten
Total amount of wheat gluten = 15.0g
Each unit of big loaf requires 0.000167g of wheat gluten
Each unit of giant loaf requires 0.002g of wheat gluten
Each unit of small loaf requires 0.00012g of wheat gluten

Soybean Oil
Total amount (volume) of soybean available = 10.0L
Each unit of big loaf requires 0.0157L of soybean oil
Each unit of giant loaf requires 0.021L of soybean oil
Each unit of small loaf requires 0.0098L of soybean oil

Profit contribution per unit product (size) of bread produced


Each unit of big loaf = N30
Each unit of giant loaf = N40
Each unit of small loaf = N20
The above data can be summarized in a tabular form.

Raw material Product Total available raw material


Big loaf Giant loaf Small loaf
Flour (kg) 0.20 0.24 0.14 200.0
Sugar (g) 0.14 0.20 0.16 160.0
Yeast (kg) 0.02 0.02 0.02 20.0
Salt (g) 0.0011 0.00105 0.00017 8.5
Wheat gluten (g) 0.000167 0.002 0.00012 15.0
Soybean oil (L) 0.015 0.021 0.0098 10.0
Profit (N) 30 40 20

Model formulation
Let the quantity of big loaf to be produce = x1
Let the quantity of giant loaf to be produce = x2
Let the quantity of small loaf to be produce = x3
Let Z denote the profit to be maximize
The linear programming model for the above production data is given by
MaxZ  3 0 x 1 4 0 x 2 20x3

S .t

0 .2 0 x1  0 .2 4 x2  0 .1 4 x3  2 0 0

0 .1 4 x1  0 .2 0 x2  0 .1 6 x3  1 6 0

0 .0 2 x1  0 .0 2 x2  0 .0 2 x3  2 0

0 .0 0 1 1 x1  0 .0 0 1 0 5 x2  0 .0 0 0 1 7 x3  8 .5

0 .0 0 0 1 6 7 x1  0 .0 0 2 x2 0 .0 0 0 1 2 x3  1 5

0 .0 1 5 x1  0 .0 2 1 x2  0 . 0 0 9 8 x3  1 0

x1 , x 2 , x  3 3 0 x  4 0 x  2 0 x  0 s  0 s  0 s  0 s  0 s  0s6
0
Converting
the model
into its
correspond
ing
standard
form;

M a x Z  1 2 3 1 2 3 4 5

S .t

0 .2 0 x1  0 .2 4 x2  0 .1 4 x3  s1  2 0 0

0 .1 4 x1  0 .2 0 x2  0 .1 6 x3  s2  1 6 0

0 .0 2 x1  0 .0 2 x2  0 .0 2 x3  s3  2 0

0 .0 0 1 1 x1  0 .0 0 1 0 5 x2  0 .0 0 0 1 7 x3  s 4 8 .5

0 .0 0 0 1 6 7 x1  0 .0 0 2 x2 0 .0 0 0 1 2 x3  s 5 1 5

0 .0 1 5 x1  0 .0 2 1 x2  0 .0 0 9 8 x3  s 6 1 0

x1 , x 2 , x 3 , s1 , s 2 , s 3 , s 4 , s 5 , s 6 0
The above linear programming model was solved using TORA software, which gives an optimal solution of:
X1 = 38.0, X2 = 0.0, X3 = 962.0
Z = 20385.0
Interpretation of Result
Based on the data collected the optimum result derived from the model indicates that two sizes of bread should
be produced, small loaf and big loaf. Their production quantities should be 962.0 and 38.0 units respectively.
This will produce a maximum profit of N20,385.0

I. SUMMARY
The objective of this research work was to apply linear programming for optimal use of raw material in bread
production. Goretta bakery limited was used as our case study. The decision variables in this research work are
the three different sizes of bread (big loaf, giant loaf and small loaf) produced by Goretta bakery limited. The
researcher focused mainly on six raw materials (flour, sugar, yeast, salt, wheat gluten and soybean oil)used in
the production and the amount of raw material required of each variable (bread size). The result shows that 962
unit of small loaf, 38 unit of big loaf and 0 unit of giant loaf should be produce respectively which will give a
maximum profit of ₦20385.0

II. CONCLUSION
Based on the analysis carried out in this research work and the result shown, Goretta bakery limited should
produce the three sizes of bread (big loaf, giant loaf and small loaf) in order to satisfy her customers. Also, more
of small loaf and big loaf should be produce in order to attain maximum profit, because they contribute mostly
to the profit earned by the company.

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