Application of Linear Programming Model on the Profit Maximization of Savannah Sugar Company Limited, Numan, Adamawa State

Abstract

Manpower can either account for unwanted expenses or production shortfalls. Profit maximization could be realised by staffing the organization with the right number of manpower with the required skills.  In this research, the inadequate and inappropriate manpower in carrying out operations of sugar production in Savannah Sugar Company Limited (SSCL)–Dangote Groups has been considered to be attributable to the present state of the company. Over the years, the Company has been battling with underproduction which has been translating into loss. The objective was the maximization of profit contribution of the entire personnel in each production day and the constraints included the basic salary and the allowances of each staff in each unit. The manpower requirement problem was modelled into a linear programming problem. TORA software for Windows version 2.00 was used to solve the problem to optimality. This optimized the profit generation from N29,040,450 to N48,493,450 daily with optimal manpower requirements of 480 employees for steam generation, 5,750 for cane preparation, 123 for milling, 68 for centrifuging, and 72 for packaging and drying.  This study has successfully determined the manpower required which is very critical to meeting the set goals of any business in each production unit of sugar production that will maximize profit in SSCL. This will address the problems of unwanted expenses through overstaffing or production shortfalls through understaffing. The study was recommended for implementation in order to adopt a scientific approach which provides an analytical methodology as a basis for decision-making in profit maximization.