Optimizing Production of Chemicals Firm using Linear Programming Technique

Abstract

Abstract This paper is an insight Linear Programming problem for different products produced by PASVEP Chemicals Production Firm and its scare resource allocation. For the purpose, the linear program model was developed with the definite objective function and adequate constraints available to the Firm. The study conducted because the firm has optimization issues in production, and therefore needed optimal solution. The result from linear mathematical model using TORA software rightly identified the optimization problem arises due to inefficient allocation of scare resources. The application of sensitivity analysis, in this regard, provided solution where to resources divert to most needed raw material to get optimal level of production. Based on outcome, the study recommended to use data-driven decision-making methods like linear programming being first and successful application in chemical industry to optimize its resource allocation. The study also recommended that the firm should continue the production of all four products, however, with more focus on PVS solution to further enhance its output.