Optimizing Concrete Paver Block Production: A Linear Programming Approach for Enhanced Profitability in the Construction Industry

Abstract

As an operational optimization (maximization or minimization) methodology, linear programming (L.P.) in operation research has proven successful in several areas by offering logical outcomes to challenging issues, including resource constraints. The study aimed to bridge the gap between theoretical applications of L.P. and the practical needs of the construction industry, specifically focusing on determining the optimal production quantities of 60 mm and 40 mm concrete paver blocks for Janta Udhog Pvt. Ltd. as a case study to achieve maximum profitability, offering essential new insights into how L.P. may successfully handle the complex problems encountered by businesses in this industry. An interview with the owner of Janta Udhog Pvt. Ltd. was conducted to obtain the primary data for the study. Secondary data such as sale records, monthly demand of each product, and inventory records were also obtained to formulate a linear programming model. The model was then solved using the LINGO software. This research underscores the optimal production recommendations for Janta Udhog Pvt. Ltd., advising the manufacture of 566.67 units of the 60 mm block and 350 units of the 40 mm block, leading to a maximum daily profit of NPR 2966.67. By applying linear programming techniques, these findings contribute to a more informed and strategic decision-making approach in the construction sector. The study illuminates the benefits of utilizing linear programming in challenging situations, providing valuable insights for academics, business owners, and decision-makers.