International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

 

OPTIMAL PRODUCTION PLANNING FOR ICI PAKISTAN USING LINEAR PROGRAMMING AND SENSITIVITY ANALYSIS
Izaz Ullah Khan, Norkhairul Hafiz Bajuri, Imran Abbas Jadoon

Abstract
This paper estimates an optimal production levels for the different products manufactured at ICI, a multinational company in Pakistan. The revised simplex method is used to maximize the profit generated in 2010 subjected to cost resource constraints. The production of Polyester, Soda Ash, Paints and Chemicals are taken into consideration. The production of the Soda Ash is most productive contributing more to the objective function. In the year 2010, the company was earning R.s 3, 273,756,000 from the production of these products. This amount raises by R.s 189,708, R.s 989,238, R.s 15,594,377 and R.s 45,408,040 by changing production patterns within the first, second, third and fourth digits respectively. The company can earn significant profit by operating on the proposed production forecasts. The top management and decision makers can maximize the profit of the company within the name plate production capacity, setting up the future goals and outlook of the company.

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