This project focuses on optimizing inventory levels for a northern hardware company planning to expand operations by opening a distribution center in the southeastern region. By leveraging linear programming, the project identifies the optimal quantities of four products—pressure washers, go-karts, generators, and water pumps—to maximize profits while adhering to constraints on budget, warehouse space, and marketing requirements.

1. Develop and Solve a Linear Programming Model:

   • Maximize net profits by optimizing inventory levels.
   • Ensure adherence to budget, space, and marketing constraints.

2. Conduct Sensitivity Analysis:

   • Assess the impact of budget and space changes on profit.
   • Determine thresholds for selling prices and inventory levels.

3. Provide Actionable Insights:

   • Recommend strategies to improve profitability and operational efficiency.

• Primary Tool: Microsoft Excel (with Solver)
• Key Techniques:
  
  • Linear Programming Optimization
  • Sensitivity Analysis
  • Shadow Price and Allowable Ranges Evaluation

• Optimal Inventory Levels:
  
  • Pressure Washers: 0 units
  • Go-Karts: 155 units
  • Generators: 238 units
  • Water Pumps: 119 cases
• Total Monthly Profit: $142,050.70

1. Increase Budget:
   
   • Allocating an additional $428.8 increases profit by $239.04.
2. Expand Warehouse Space:
   
   • Increasing space by 6,078 sq. ft. boosts profit by $23,350.07.
3. Adjust Selling Prices:
   
   • Pressure washers should only be stocked if the selling price is raised to at least $280.07.

. ├── Data/ │ ├── Maximizing_Profit.xlsx ├── Analysis/ │ ├── Solver_Model.xlsx ├── Visualizations/ │ ├── Sensitivity_Charts.png ├── Reports/ │ ├── Maximizing_Profit_Report.pdf ├── README.md

For a detailed analysis, refer to the full report:
📄 Maximizing Profit Report

Feel free to reach out for feedback, questions, or collaboration opportunities:
LinkedIn: Dr. Syed Faizan

Author: Syed Faizan
Master’s Student in Data Analytics and Machine Learning