ABSTRACT

In our contemporary society, the main objective of any business organization is to maximize profit and keep cost as low as possible. However, this project is focused on the application of linear programming to an organization with seven up Bottling Company Plc as a case study. It was carried out to determine whether linear programming model enhances profit maximization on the sales of Seven-up, Pepsi-cola and Mirinda Orange from 2012 to 2013. The data used in this research work is the secondary data collected from Seven-up Bottling Company Plc Aba Plant from the quality control unit an marketing departments respectively. The kind of data collected was on the cost price in (N), selling price in (N), product mix and total production unit of the products placed under study. Based on this research, the data will be analyzed using the simplex method of linear programming. The decision variables used are X1, X2and X3. Where X1 represents a pallet of Seven-up, X2represent a pallet of Pepsi-cola and X3represent a pallet of Mirinda Orange. In the course of this analysis, lOX1, 8X2and 6X3are the values of the decision variables that will maximize profit in 2012 where as 9X1, 12X2and 8X3are the values of the decision variables that will maximize profit in 2013. The study revealed that Seven-up Bottling Company should have produced 60 pallets of Seven-up (X1) in 10 hours to maximize a profit of N600.00k in 2012 and 67 pallets of Pepsi-cola (X2) in 12 hours to maximize the profit of N800.00k in 2013.