Linear programming application to the plastic pipes manufacturing firm

Abstract

This thesis analyzes a multiproduct , multiperiod optimumproduct-mix problem and its solution using linear programmingmodel.The model is applied to PIMAS AS which produces numeroustypes of plastic construction and building materials such asvarious kinds of plastic pipes, fittings, window frames.Theobjective is maximization of total profit-which is equal to salesrevenue less all variable costs while complying productionmarketing ,and financial constraints.Window frames are differentfrom pipe with respect to every phase of manufacturingtechnique,labor and marketing efforts.Here only pipes will bethe main study .area.This model takes all the departmental constraints atthe same time, and looks at the firm as a whole without dealingwith details.Three cases will be examined.The first one includesmanufacturing and marketing constraints., and previousterms' effects. Financial constraints are added to the problemin the second case.The third one will also consider priceincrease in both selling prices and raw material .(This is verycommon in the industry.)