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Reflection Paper On Financial Ratio Analysis

This document discusses how linear programming (LP) techniques can be used in various areas of operations for manufacturing companies. LP can be used to determine the optimal product mix and inventory levels to maximize profits while minimizing costs. It can help allocate resources efficiently. Potential restrictions for using LP include complexity of large-scale models, resistance to change from employees, and lack of expertise to develop and implement LP models.

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Jemar Lavanancia
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38 views1 page

Reflection Paper On Financial Ratio Analysis

This document discusses how linear programming (LP) techniques can be used in various areas of operations for manufacturing companies. LP can be used to determine the optimal product mix and inventory levels to maximize profits while minimizing costs. It can help allocate resources efficiently. Potential restrictions for using LP include complexity of large-scale models, resistance to change from employees, and lack of expertise to develop and implement LP models.

Uploaded by

Jemar Lavanancia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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FINANCIAL RATIO ANALYSIS

 How Linear Programming technique was used in the different areas of operations?

In a manufacturing company, LP can be used in Production Planning. LP can be used to determine the

optimal mix of products to produce given limited resources such as labor, raw materials, and production

capacity. Through solving LP model, it helps the manufacturing companies minimize its cost and maximize

profits. In inventory management, it helps to determine the optimal inventory levels for each product. This

ensures that manufacturing companies maintain sufficient inventory levels to meet customer demand while

minimizing inventory carrying cost.

 What is/ are the application/s of LP in the article that are applicable in your organization/company?

As mentioned in the article, LP can be used in different sectors of various industries especially in the

manufacturing of goods. Most common manufacturing company use this model to maximize efficiency with

minimum operations cost or maximum product in minimum cost. This cases possibly happens in their resource

allocation, it helps to determine the optimal allocation of resources, such as labor and raw materials, to

different production processes. This helps to maximize efficiency and minimize costs.

 What might restrict your company/ organization from using LP techniques?

Working in a large manufacturing company, the possible hindrance of using LP techniques is the

complexity. LP models can become quite complex, especially when dealing with large scale problems. This

can require a significant amount of computational power and expertise to develop and solve the models. Also,

the resistance to change. Implementing linear programming techniques may require changes to the

organization's existing processes and procedures. Some employees may resist these changes, making it

difficult to implement the models effectively. Lastly, the lack of expertise, developing and implementing linear

programming models requires specialized expertise in mathematics and computer science. If the organization

does not have access to this expertise, it may be difficult to effectively develop and implement the models.

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