PRODUCT MIX AND OPERATING PROFIT OPTIMIZATION: INTEGRATION BETWEEN TDABC AND LINEAR PROGRAMMING IN THE FOOD INDUSTRY

Abstract

The objective of this study was to demonstrate the joint use of TDABC and the Solver add-in (Excel) to project the ideal production quantity to optimize the monthly profit of a processed meat factory, considering production capacity constraints (in minutes). The methodology employed can be classified as descriptive, with a quantitative approach and in the format of a single-case study. The literature review addressed concepts related to TDABC (implementation stages, benefits, and associated limitations), Linear Programming, and Solver. In the presentation of the results, the procedures performed to apply TDABC in the studied industry are mentioned, describing the stages implemented and the resulting information. Next, the data required for using Solver to resolve the researched issue were gathered. Finally, the resulting findings were listed, evidencing that the combination of Solver with TDABC is feasible to discover the mix to produce/sell to optimize the operating result through simulations. Therefore, the research contributed by presenting a practical application of TDABC and Solver, together, which makes it possible to improve a factory's profitability. As the main methodological limitation, the impossibility of generalizing the findings stands out because it is a single-case study.