Raysons Power Builder Inc.

CHAPTER I

INTRODUCTION

Background of the study

        Raysons Power Builder Inc. is a company that focus on designing and powering establishments with the help of their knowledge in electrical works. RPB Inc. focus in electrical works but the company is also building different kind of establishments. Like buildings, houses, apartments, mall stores etc. The company was first known as MOCORA Inc. the company change their name due to owner’s matter. Raysons Power Builders Inc. have two (2) warehouse where they keep their materials like electrical wires, metal rods, woods, PVC pipes, and other electrical equipment. The first warehouse is located at Baesa, Quezon City, Philippines. The other warehouse is at Guiguinto, Bulacan, Philippines.

        Linear programming is the process of taking various linear inequalities relating to some situation, and finding the "best" value obtainable under those conditions. n "real life", linear programming is part of a very important area of mathematics called "optimization techniques". This field of study (or at least the applied results of it) are used every day in the organization and allocation of resources. These "real life" systems can have dozens or hundreds of variables, or more. In algebra, though, you'll only work with the simple (and graph able) two-variable linear case. (Purple math, 2018)

        According to famous Economist Robbins, the resources (land, labor, capital, materials, machines, etc.) are always limited. But each resource have various alternative uses. The problem before any manager is to select only those alternatives which can maximize the profit or minimize the cost of production. The linear programming technique is used for selecting the best possible strategy from a number of alternatives. (R, 2013)

Problem Statement

        Rayson Power Builders Inc. has a client project in Malabon and Marilao. The project in Malabon needed 600 meters of electrical wire. And Marilao requested 400 meters of electrical wire. Raysons have 700 meters of electrical wire in their warehouse in Baesa and 800 meters in Guiguinto. The estimated overall cost of delivering the materials from Baesa to Malabon is 250 php. Then, Baesa to Marilao is 500 php. When the materials will come from Guiguinto. It will cost 750 php when Guiguinto to Malabon. 200 php from Guiguinto to Marilao. Rayson Power Builder Inc. want to know how many electrical wires they need to deliver from each warehouse to Malabon and Marilao to satistfy the demand at most least cost.

Objectives of the Study

        The main objective of this study is to determine what specific measure Raysons need to get from each warehouse to satisfy the demand but with the least cost. To attain this objective, the researchers set a sub-objectives that will be significant. The sub-objectives is listed down below:

• Evaluate the problem and define the unknown variable.
• Express the objective function
• Express the constraints
• Give recommendations that will satisfy the objective

Rationale of the Study

        The significance of this is the company or Rayson Power Builder Inc. can satisfy the demand of the two(2) projects with the most minimum cost.  

        Linear programming is now used extensively in business, economics and engineering. An example of an engineering application would be maximizing profit in a factory that manufactures a number of different products from the same raw material using the same resources. The constraints would be decided by the amounts of raw materials available. In the field of business and management, linear programming is a method for solving complex problems in the two main areas of product mix (where the technique may be used where it is difficult to decide just how much of each variable to use in order to satisfy certain criteria such as maximizing profits or minimizing costs, subject to certain constraints) and distribution of goods. (Linear Programming, 2006)