Maela Madel Labso Cahigas

In understanding one of the factors contributing to the low-profit performance of the Industrial Rental Section of MMI, one challenge it currently faces is the efficient allocation of limited inventory to meet customer demands. This study aims to optimize the allocation process through a linear programming model (LP). Linear programming and how the data is transformed to provide an optimal solution to maximize rental profit. Data available is gathered through historical data analysis. This method allows the researcher to identify the optimal allocation strategy that maximizes resource utilization and minimizes costs. Results show a successful optimization of rental assets using LP was executed with LINDO software, yielding a maximum value of 3,732 while satisfying all constraints. The sensitivity analysis identified binding and non-binding coefficients, highlighting which changes would impact the optimal solution. In conclusion, the analysis suggests that the company should improve customer product knowledge and expand its inventory based on popular equipment to boost rental profits and reach more customers. Overall, Linear Programming is an effective tool for the rental industry, providing insights for managers to allocate resources efficiently and enhance operational performance.