Linear Programming Analysis

893 Words2 Pages

ii. Marketing management
• The Linear programming model is applicable to media selection problems where the objective function is to increase the exposure rates of different market segments within the limited budgets, with the help of minimum or a maximum number of advertisements in different media.
• Using the variations of linear programming model such as travelling salesmen problem, salesmen work is scheduled in different cities so that the travelling cost is minimised.
• Linear programming assists in the locational decisions of various manufacturing and distribution facilities. iii. Financial management
• A major application of linear programming is in portfolio selection decisions. Using linear programming it is easy to find the appropriate …show more content…

It is one of the optimisation techniques used in operations research.
• The structure of the linear programming contains three elements such as decision variables, objective function and constraints
• Linear programming is applied in various fields to improve the quality of decision making by providing optimal solution
• Linear programming has its own limitations as this method is based on certain assumptions that are not always true in the real situations such as linear relationship among variables will not be there in real life situations. It does not give importance to time and uncertainty. It can handle only one objective in contrary there are conflicting objectives in real situations.
• Applications of linear programming in different areas of management are discussed such as product mix , production planning, media selection, portfolio management, staffing and more

Terminal Questions
1. What is meant by linear programming? State the advantages and limitations of linear programming.
2. What are the major elements of a linear programming problem? Illustrate with an example.
3. What is the role of linear programming in managerial decision making? Illustrate with respect to any one of the areas of

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