01-01-2013, 12:59 PM
LINEAR PROGRAMMING
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Introduction of linear programming
A large number of decision problems faced by a business manager involve allocation of resources to various activities, with the objective of increasing profits or decreasing costs, or both. When resources are in excess no difficulty is experienced. But such case is very rare. Practically in all situations, the managements are confronted with the problem of scarce of resources. Thus, the manager has to take a decision as to how best to allocate the resources among the various activities.
The decision problem becomes complicated when a number of resources are required to be allocated and there are several activities to perform. Rule of thumb, even of an experienced manager, in all likelihood, may not provide the right answer in such cases. The decision problems can be formulated, and solved, as mathematical programming problems.
Mathematical programming involves optimisation of a certain function, called the objective function, subject to certain constraints
Definition and Explanation:
Linear programming is a mathematical technique which permits determination of the best use of available resources.
It is a valuable aid to management because it provides a systematic and efficient procedure which can be used as a guide in decision making. The heart of management's responsibility is the best or optimum use of limited resources that include money, personnel, materials, facilities, and time.
Another definition of linear programming
Linear programming (LP, or linear optimization) is a mathematical method for determining a way to achieve the best outcome (such as maximum profit or lowest cost) in a given mathematical model for some list of requirements represented as linear relationships. Linear programming is a specific case of mathematical programming (mathematical optimization).