DISCUSSION

By using the simplex table for each diaper size,132525 units of Giant (L) diapers can
be produced at maximum profit. For the L size diapers only 4,500 units of diapers can be
produced per day per production.
With the simplex calculations, our R&D department has proposed to only produce L
size diapers as it has the highest market value but also produces the highest profit to the
company. With 100% capacity of workers in 1 line, were able to maximize production
and stay below the pollution level set by the local municipal council of 3,500 units.
1. The unit pollution for 1 production line is 3400 units which is lesser than 3500 units,
hence avoiding a fine of RM250, 000. The pollution cost of this project is RM34,000. (1)
2. With the decision of applying 100% capacity which is 20 workers for the production
line, a salary of RM1, 500 is given to each worker. Hence, the cost of salary for one
production lines is RM30, 000 (2)
3. The material cost of each of unit of diaper of RM 0.6345, leading to a total material
cost RM 68,525. (3) for 108,000 units
4. By summing up the values in (1), (2) and (3), the total cost of production is found to
be RM132,525RM132,525.
5. The net profit, which is the profit after deducting the cost of materials, salary and
pollution is RM37,859.80.
CONCLUSION
As a verdict ,this project has exposed us to maximize profit by computing it in a
program built into Microsoft Excel named Solver by using the Simplex Method.Based on
the constraints provided to the R&D team,we have been able to successfully come up
with a production and sales plan for the company. Besides, based on the simplex method
it is also found that maximum profit is mainly generated by producing the L size diapers
The maximum number of production is 108000 units of L size diapers.Due to
unavoidable circumstances and constrains such as the size of the work place ,the total
amount of materials and to not exceed the pollution limit set by the local municipal
council resulting from 1 production lines running at maximum capacity producing a total
of 108000 units of L size diapers.This is because of the inability of the simplex method to
regard certain data like the total number of line, capacity, total production, price per unit
of diaper, and percentage of sales .
Based on extensive research done by the R&D team to not only maximize profit but also
to not compromise with the quality of the product simultaneously reducing the cost of
the diaper,the optimum composition for each diaper is found.The composition gives us a
total material cost of RM 68,525. for 108,000 units of L size diapers.To top it all,a
pollution clean up cost of RM34,000 for 3400 units of pollution produced and the wages
of 20 workers , RM30, 000 results to a total cost of RM132,525.
The net profit, which is the value after deducting the cost of materials, salary and the
pollution clean up cost from the total revenue is RM37,859.80