Business Uses of a Linear Programming Model | Bizfluent

 

practical application of linear programming models

Linear programming (LP) is useful for resource optimization, as long as the constraints and the objective function are linear or can be linearized (also, it helps if feasible solutions exist and especially if optimal solutions exist, but uniqueness is not an impediment to anything - ties are broken easily by specific algorithms). Parameters: A linear programming model has both the mathematical statement of the objectives as well as that of the constraints. These mathematical statements contain symbols representing the decision variables and also numerical values in the form of constants called parameters. Assumptions made in linear programming models. Linear programming can be applied to various fields of study. It is widely used in mathematics, and to a lesser extent in business, economics, and for some engineering problems. Industries that use linear programming models include transportation, energy, telecommunications, and manufacturing.


Linear programming - Wikipedia


Businesses use linear programming methods to determine the best ways to increase profits and decrease operational costs. Linear programming methods enable businesses to identify the solutions they want for their operational problems, define the issues that may alter the desired outcome and figure out an answer that delivers the results they seek. Although the phrase "linear programming" came into use well before the widespread use of computers, software packages are available that replicate the linear programming processes.

Linear programming methods are often helpful at solving problems related to production. A company that produces multiple types of products can use linear programming methods to calculate how much of each product to produce to maximize its profits. For instance, a custom furniture shop that makes chairs and tables can calculate how many of each item they must sell to maximize their profits by looking at the numbers of each item previously sold and their prices.

A practical application of linear programming models aspect of marketing strategy is the "marketing mix, practical application of linear programming models. A linear programming simulation can measure which blend of marketing avenues deliver the most qualified leads at the lowest cost. For example, the custom furniture store can use a linear programming method to examine how many leads come from TV commercials, newspaper display ads and online marketing efforts.

The solution will also compare the relative prices of each medium to find the most economical mix. Manufacturers and distributors can use linear programming methods to solve distribution problems. These mathematical exercises can help manufacturers determine the most cost-effective way to ship products from the factory to the warehouse.

Warehouse managers can also use similar models to calculate the most economical way to transport the products from the warehouse to the retail outlets, practical application of linear programming models. These models can also ensure that warehouses maintain an optimal amount of each product in stock as demand fluctuates.

Human resources planners can use linear programming methods to determine when to hire more workers, which skill sets the company needs and how much they can offer in compensation, practical application of linear programming models. These methods can also be used to anticipate times of increased demand for available workers. For example, a department store can use linear programming methods to calculate how many new hires they will make for the busy holiday shopping season, as well as which departments will see higher traffic and require more staff.

Living in Houston, Gerald Hanks has been a practical application of linear programming models since He has contributed to several special-interest national publications. Before starting his writing career, Gerald was a web programmer and database developer for 12 years. Share It. About the Author. Photo Credits.

 

 

practical application of linear programming models

 

Applications of linear programming are every where around you. You use linear programming at personal and professional fronts. You are using linear programming when you are driving from home to work and want to take the shortest route. Or when you have a project delivery you make strategies to make your team work efficiently for on time delivery. Linear programming (LP) is useful for resource optimization, as long as the constraints and the objective function are linear or can be linearized (also, it helps if feasible solutions exist and especially if optimal solutions exist, but uniqueness is not an impediment to anything - ties are broken easily by specific algorithms). A linear programming simulation can measure which blend of marketing avenues deliver the most qualified leads at the lowest cost. For example, the custom furniture store can use a linear programming method to examine how many leads come from TV commercials, newspaper display ads and online marketing efforts.