TITLE:
Application of Linear Programming Algorithm in the Optimization of Financial Portfolio of Golden Guinea Breweries Plc, Nigeria
AUTHORS:
Emmanuel Nwabueze Ekwonwune, Dominic Chukwuemeka Edebatu
KEYWORDS:
Optimization, Linear Programming, Model, Products, Software, Linear Programming Model
JOURNAL NAME:
Open Journal of Modelling and Simulation,
Vol.4 No.3,
June
20,
2016
ABSTRACT: In this study, Simplex Method, a Linear Programming technique was used to create a mathematical model that optimized the financial portfolio of Golden Guinea Breweries Plc, Nigeria. This work was motivated by the observed and anticipated miscalculations which Golden Guinea Breweries was bound to face if appropriate linear programming techniques were not applied in determining the profit level. This study therefore aims at using Simplex Method to create a Mathematical Model that will optimize the production of brewed drinks for Golden Guinea Breweries Plc. The first methodology involved the collection of sample data from the company, analyzed and the relevant coefficients were deployed for the coding of the model. Secondly, the indices collected from the first method were deployed in the software model called PHP simplex, an online software for solving Linear Programming Problem to access the profitability of the organization. The study showed that Linear Programming Model would give a high profit coefficient of N9,190,862,833 when compared with the result obtained from the manual computation which gave a profit coefficient of N7,172,093,375. Also, Bergedoff Lager, Eagle Stout and Bergedoff Malta were found not to contribute to overall profitability of the company and it was therefore recommended that their productions should be discontinued. It also recommends that various quantities of Golden Guinea Lager (1 × 12) and Golden Guinea Lager (1 × 24) should be produced.