Using Simplex Method to Maximize Profit for McDonald’s

Abstract

Generally, the main purpose of a corporation or businessman is to maximize profit. Mathematically, a function of revenue, which consists of the prices and quantities of goods, is needed to achieve their goal. However, in reality, there are always some constraints or limitations that restricts production. For instance, the time needed to produce the goods, the number of raw materials prepared the space occupied by products and so on. In this article, an approach called the simplex method is introduced to solve this kind of problem. This method is straight and simple to understand and usually works when dealing with questions with inequalities and constraints. There are some drawbacks, though, such as the linearity and curvature of given functions and inequalities and the time required in a real situation. This essay will focus on problems that consist of only two variables and four constraints. The detailed explanations of introduction, detailed information of simplex method, and an application where an example of McDonald’s will be given. The limitations and conclusion are followed.