A Linear Programming Approach to Optimal Production Planning and Control Policy: A Case of Polypropylene Plant of The Eleme Petrochemicals Complex Ltd (EPCL), Nigeria

Abstract

Industrialization constitutes a major objective of the development strategy of most emerging economics. It has always been recognized that rapid industrial growth is the principal means of achieving increased  employment, income and living standards and that the socio-economic transformation of any developing economy cannot be achieved except
through accelerated industrial expansion. Production activities transform human, materials, capital. Informational and other resources into higher-valued goods and services through operations management. Many decisions in organizations are concerned with allocating resources to productive activities. When there are restrictions on the availability of some of the resources or the activities are interdependent, the decision problem can become very difficult. A very powerful tool for solving such problems is the linear programming approach. This study investigates the extent to which the interactive linear programming approach for solving multi-product aggregates production planning problem. The simplex method – can be applied by the management of the above company to achieve optimum product-mire and maximize sales profit in view of cost, capacity, and
other limitations and under the present situation where there is a demand for whatever quantity of the three grades of resins (L130ST, P130ST, and W130ST) which the plant can produce. The use of linear programming did not only enhance the decision-making ability of the management but ensured greater sales and profit margin as against when decision was by initiation and experience.

KEY WORDS: Linear Programming, Optimum Production Planning, Simplex
Method, Control Policy, Resource Allocation.