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Sunday, October 10, 2010

Linear Programming - What to expect

If you have any objective like maximize profit or minimize loss or maximize customer satisfaction or minimize some claim function or something like this, you can obviously maximize the objective to infiniy or minimize to zero or minus infinity as the case may be. But it is ususally not done. Because there are constraints. An organization manufacturing cars donot produce infinite number of cars because it may not have that much demand or may be it is constrained by capacity etc.

If objective and constraints can be expressed in the form of linear expressions, the problem can be programmed as a linear programme and solved.

Everyone here will be able to do this. But we will try to go ahead. You should try to get important insight using Linear Programme into decision situations where if you are given additional fund, you should be able to decide about its use to get best result.