Production Planning of LCDs: Optimal Linear Programming and Sensitivity Analysis?

Abstract

Aim: This research takes into the production of Flat Panel Monitor of four sizes and will point more the products that contribute the main function of profit. Methodology: For the optimization of the profit of LCDs manufacturing company, the linear programming and sensitivity analysis methods were applied. The four constraints of the LCDs production planning are (1) acquire of line space for production, (2) the assembly of products, (3) Quality control and assurance Hours (4) and packaging of material. Results: In all three scenarios the total profit is optimum and increases from scenario 1 to scenario 3. The difference between the profit of scenario 1 and scenario 2 is 257625, and gap between scenario 2 and scenario 3 is 171750. Conclusion: the three scenarios for the production of the LCDs present the varying consequences of the maximum profit for the company. However, the third scenario is the most optimal solution for the maximization of the objective function.

Keywords: Production Planning, Linear Programming, Sensitivity Analysis, Simplex Method, Operations Research, LCD Monitor.