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Chapter 7 – Linear Programming
S. Neuburger
Linear Programming
Linear programming is widely used in planning resource allocation.
The most common type of application involves
allocating limited resources among competing activities in a best (i.e. optimal) way.)
Programming refers to
modeling and solving a problem mathematically.
Product mix problem is common application of LP to determine
how much of each product a company should produce.
Properties of LP problems:
•
Goal is to maximize or minimize some quantity, generally profit or cost, respectively.
•
Limiting constraints (restrictions).
•
There are alternative courses of action to choose from.
•
Linear equations and inequalities – variables are of first degree and only appear in one term of each
equation.
Assumptions of LP:
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Certainty of quantities
•
Proportionality
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Additivity – sum of all activities equals sum of individual activities
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Divisibility – unlike integer programming
•
Nonnegativity of variables
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 Spring '10
 Smith
 Economics

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