Linear Programming Model in Services Companys Production Cost Management

Production companies in Nigeria (Dadaka Flour Mill Nigeria Ltd) are basically concern with the production of quality products needed by its customers subject to the availability of raw material (scarce resources), at the same time not violating the Standard Organization of Nigeria (SON) and National Agency for Food and Drug Administration and control (NAFDAC). The problem then, is on how to utilize the limited resources available, to satisfy the needing demand and at the same time optimize the production cost. In this paper we developed a production cost model for Dadaka Flour Mill Nigeria Ltd as a linear programming problem and solved using POM-QM Optimization software version 3.0, sensitivity analysis was also carried out on the Dadaka Flour Mill Nigeria Ltd production cost model.