On the use of Big M method in modeling production process: A case study of NARICT, Zaria

Abstract

In the National Research Institute for chemical Technology (NARICT), optimal control of production and distribution has a fundamental role to play. One inevitable area where production planning has proven useful is in the allocation of scarce resources to meet certain production demand, also in the distribution of finished goods to different demand location at a minimum cost. In this study, the particular scenario presented concerns NARICT with potentials for production of multiple items under different facilities was considered. The items produced are distributed to number locations whose demands are known. Three integer programming models were analyzed to address the production planning problem, while the modified version of simplex method was used as the numerical tool for the computation of the optimal solution. The optimal solutions were verified using the Windows based Quantitative System for Business (WINQSB) package. The results obtained showed that not all items should be produced if a minimum cost is to be achieved (i.e. some item should have zero production units).we see that if demand is known at a starting point our decisions are not exposed to uncertainty, since the demand determines the actual distribution of quantities and consequently the minimum distribution cost. Adequate production planning is essential to ensure less operational cost and increased profits.