MANSCIE-WEEK3

• Linear Programming 

  • It is a widely used mathematical modeling technique designed to help managers in planning and decision-making relative to resource allocation.
• Elements of Linear Programming 

  1. Objective Function
  2. Decision Variables
  3. Constraints
• Elements of Linear Programming 

  • Objective Function seeks to maximize or minimize some quantity, usually profit or cost
• Elements of Linear Programming 

  • Decision Variables is the potential or recommended decision of the manager
• Elements of Linear Programming 

  • Constraints limits the degree to which we can pursue our objective
• Properties of LP

  1. One objective function
  2. One or more constraints 
  3. Alternative courses of action 
  4. Certainty 
  5. Nonnegative Variable
• Steps in Formulating LP

  1. Completely understand the managerial problem being faced 
  2. Identify the objective and the constraints
  3. Define the decision variables
  4. Use the decision variables to write mathematical expressions for the objective function and the constraints 
• Graphical Solution to An LP Problem:

  1. Isoprofit Line Solution Method
  2. Corner Point Solution Method
• Isoprofit Line Solution Method is the first method to be used in finding the optimal solution. It is the graph of the profit function. It’s called ISO because it means the same or equal and the profit anywhere on the line is the same.
• Labor Planning problems address staffing needs over a specific period. They are especially useful when managers have some flexibility in assigning workers to jobs that require overlapping or interchangeable talents. Banks and credit unions frequently use LP to tackle their labor scheduling.
• LP Applications in Local Supply Chain Management is the process of sourcing materials, components, and services from local suppliers to meet the needs of a company.