Profit Optimization of an Apparel Industry in Bangladesh by Linear Programming Model
American Journal of Applied Mathematics
Efficient use of resources in production stages is very much important for every industry. For sustainable development of industry, efficacious management decision making techniques may be employed to analyze and utilize resources. Linear programming, as a quantitative decision-making tool, can be engaged by the managements for enhancing resource utilization along with increasing profit and decreasing cost. Proper allocation and usage of resources like available processing time at different
... me at different stages, labors, materials such as fabrics and sewing threads is the tacit factor for profitability of an apparel manufacturing firm. Apparel processes such as cutting, sewing, washing, dying, trimming and finishing are needed to be optimized for lead time management. This study formulated a linear programming model to maximize profit and minimize cost of apparel industries. The model also optimizes the utilization of resources. This paper considers a knit garment manufacturing unit of Bangladesh which is situated in Gazipur district. Data containing monthly resources utilization amount, product volume, profit per unit on different types of products have been collected from the case industry. The data collected was used as the parameters of the proposed linear programming to validate the model. The model was implemented and solved by the Microsoft Excel Solver as well by AMPL. This research revealed that the profit of the case company can be increased by 22% when there is sufficient demand and that can be 12.33% when clients' requests are to be met. On the other hand, cost may be decreased by 37% by using the LPP model.