Studying The Influence of Raw Materials Constrain on Maximize The Revenue of Products Mix Using Simplex Linear Programming Method “Applied Study in Heavy Engineering Equipment State Company”

Abstract

In this research simplex method as a linear programming was applied for maximizing the revenue of the products in the heavy engineering equipment state company. Linear programming is one of the important mathematical modeling used in operation research for decision making to solve some of the problems in the industrial fields. The studying of the influence of raw material constraint to maximize the revenue was performed. The products that assigned in this research include:1.Heat exchangers. 2. Storage tanks. 3. Steam boilers. 4. Pressure vessels. 5. Steel structure. According to the actual data in the company for the period from 2/1/2010 to 31/12/2011, the average price of each (Ton) per product was calculated; the objective function for maximizing revenue was adopted taking into consideration the following constraints:1. Available capacity. 2. Raw Materials and 3. Available time or working hours. The influence of increasing the raw material constraint on maximizing revenue according to the product mix was studied.Mathematical model was formulated to study and analyze according to the data of the current situation in the company using WinQSB software, for the objective function and the constraints. Solving the problem using WinQSB was performed; the solution started from the table for the basic solution toward the final simplex table. Fifteen cases was applied to study the effect of increasing raw material constraint on the revenue of products mix. The results showed considerable revenue increasing that reached 18 906 570 000 ID, i.e. 52% ....