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A Linear Programming - Math Problem Example

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Linear Programming is an essential decision making tool in Production and Operation Management. It is used to determine the most effective way of using an organization's limited resources. {Heizer, Jay and Render, Render. "Production and Operations Management" p.240}…
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A Linear Programming
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Download file to see previous pages In mathematics, linear programming (LP) problems involve the optimization of a linear objective function (i.e., maximize profit or minimize cost) subject to linear equality and inequality contraints. {"Linear Programming." Wikipedia: The Free Encyclopedia}.
Since the problem involves a production and distribution system, use of the Transportation Method in Linear Programming is the best way to solve this. {Heizer, Jay and Render, Render. "Production and Operations Management". pp. 373-399}. A dummy destination is required since the production capacity is greater than the demand. {Heizer, Jay and Render, Render. "Production and Operations Management". p381}
This recommendation will enable the company to minimize total operating cost at US$ 3,195,000 per month whilst efficiently supplying the requirement of each outlet.
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{Heizer, Jay and Render, Render. "Production and Operations Management".4th Edition.p.240}
{Heizer, Jay and Render, Render. "Production and Operations Management".4th Edition. Chapter 9. pp. 373-399}
{Heizer, Jay and Render, Render. "Production and Operations Management".4th Edition. Chapter 9. p381}
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