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Introduction

Mathematical programming is used to find the optimal solution to problems involving limited resources by converting the problem into a mathematical model, exploring different solutions, and identifying the most suitable solution. Linear programming, a type of mathematical programming, calculates how to allocate limited resources like materials and labor across products and services to maximize profit or revenue, making it a useful and widely-used quantitative business model.

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Aashik Prabhakar
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16 views

Introduction

Mathematical programming is used to find the optimal solution to problems involving limited resources by converting the problem into a mathematical model, exploring different solutions, and identifying the most suitable solution. Linear programming, a type of mathematical programming, calculates how to allocate limited resources like materials and labor across products and services to maximize profit or revenue, making it a useful and widely-used quantitative business model.

Uploaded by

Aashik Prabhakar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Introduction (to mathematical programming)

 Mathematical programming is used to find the best or optimal solution to a problem that
requires a decision or set of decisions about how best to use a set of limited resources to
achieve a state goal of objectives.

 Steps involved in mathematical programming

 Conversion of stated problem into a mathematical model that abstracts all the essential
elements of the problem.

 Exploration of different solutions of the problem.

 Finding out the most suitable or optimum solution.

 Linear programming requires that all the mathematical functions in the model be linear
functions.

Linear Programming
• What is Linear Programming?

– A way of calculating how to allocate limited resources like raw materials and labour to
products and services to give the maximum possible profit or revenue.

• Why is it useful?

– Linear programming is probably the most-used type of quantitative business model.

– It can be applied to any environment where finite resources must be allocated to


competing activities or processes for maximum benefit (e.g. an investment portfolio of
stocks to maximise return or allocation of a fixed budget between competing
departments).

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