Optimum Production Problem: A Case Study of Ghacem- Takoradi

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The cement industry is the building block of the nation's construction industry. Few construction projects can take place without utilizing cement somewhere in the design. The most important use of cement is the production of mortar and concrete – the bonding of natural or artificial aggregates to form a strong building material, which is durable in the face of normal environmental effects. The main objective of this study is to develop cement production model at Takoradi-Ghacem using linear programming to minimize the monthly cost of cement production. A theoretical method used in solving models (graphical method and simplex method) and sixpap, software for solving linear programming models was used. The study revealed among others, the factors that influence the cost of producing cement at Takoradi- Ghacem for which the production of a bag of cement becomes expensive. The factors include: cost of labour, cost of electricity, cost of fuel, cost of raw materials and cost of maintenance. Among the above listed factors, the most influential factors are: cost of raw materials and cost of electricity. The study revealed that, the average total cost ghs38500.40 and ghs1003585 for raw materials and electricity respectively can be optimized to ghs69667.04. This optimal solution can be achieved if the total quantity of electricity is reduced to 554859.45 kwh and the quantity of raw materials remains the same.
A thesis submitted to the School of Graduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirements for the award of the Degree of Master of Science in Industrial Mathematics, 2011