Allocation Organizational Resources for Production of Finished Goods Inventories Using Linear Programming Model

As a result of the growing competition within the consumer goods industry coupled with expectation of shareholders for profit maximization, the decision of optimal product mix and allocation of resources falls on the managers so that customers expectations can be met. As a result of this, this study examined how organizational resources can be strategically allocated for optimal business performance subject to labor machine and material constraints. These data were then analyzed through the linear programming solver software in order to allocate several the firms resources to competing variables (sachet water, bottle water and dispenser). The study therefore revealed that the Business Unit should focus on invest 23.4 minutes of labour hours, 23.4 minutes of machine and 480 minutes of material. And the analysis recommends x1=0, x2=60, x3=0 should be produced.