Development of Operation Planning Optimization Model for a Plastic Industry in Anambra State

Abstract

This study optimizes a production plan for a plastic company in Anambra State, Nigeria. An operational planning optimization model was developed. The company produces five different plastic products, namely sitting chairs, home buckets, paint buckets, cups, and plates. The study helps the management in allocating available scarce resources to the different products. Data collected through interviews and documentation with various resource persons was used to develop a linear program whose solution optimized the production and profit activities of the company. The results show that the company should stop the production of sitting chairs, produce 30,000 units of domestic buckets, 4970 units of trays, 700 units of back plates, and 400 units of cups. This operation will yield a profit of $2,154.00, which is a 28% increase from the current monthly gross profit of $1,680.10. This shows that the linear programming technique is an accurate model in decision-making production, efficient in profit maximization and cost reduction, not only in Plastic Industries but for all manufacturing industries.