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Linear Programming

Linear programming is a mathematical technique used when management is confronted with situations that require making the best use of available resources. It is a resource allocation technique that yields the best combination of resources to optimise benefits or minimise cost and/or time. Benefits could be revenue or profit. There are two basic techniques used in linear programming; they are the graphical solution method and the simplex method.

Both methods will be considered here.

Assumptions of Linear Programming

Assumptions of linear programming include:

(i) Additivity – All the variables in the LP model can only be added, they cannot be multiplied or divided

(ii) Divisibility The coefficients of the variables must not necessarily be whole numbers, they can be fractions

(iii) Deterministic: The values of the explanatory variables in the LP model are known and are expected to be constant on the short run

(iv) Proportionality: The variables in the objective function and constraints are linear

Requirements of Linear Programming

(i) There must be an objective which the firm or organisation wants to achieve. The objective could be to maximise benefit, revenue, profit, or to minimise cost, idleness, time, among others;

(ii) The variables must be capable of being stated in quantitative terms. This means that both the objective and the restrictions

(constraints) must be capable of being expressed in the form of mathematical expressions and they must be in linear form

(iii) Resources must be limited in supply. It is this limitation in the available resources at the disposal of the manager that poses a constraint to him and thus necessitates the efficient allocation of the scarce resources

(iv) Several solutions must be available to the problem; however, our resolve is to choose the best among these solutions. The best among the several solutions available is the optimum solution;

(v)The variables in the objective function, together with the constraints must be linearly related

(vi) The variables must be interrelated

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