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Operations Research Lesson 2-1

Linear programming (LP) is a mathematical modeling technique used for resource allocation decisions in various managerial areas such as marketing and finance. An LP problem consists of an objective function, available alternatives, linear constraints, and requires certainty, divisibility, and non-negative variables. Key concepts include slack and surplus, which help identify binding and non-binding constraints in optimal solutions.

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AHMED SOLAIMAN
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22 views6 pages

Operations Research Lesson 2-1

Linear programming (LP) is a mathematical modeling technique used for resource allocation decisions in various managerial areas such as marketing and finance. An LP problem consists of an objective function, available alternatives, linear constraints, and requires certainty, divisibility, and non-negative variables. Key concepts include slack and surplus, which help identify binding and non-binding constraints in optimal solutions.

Uploaded by

AHMED SOLAIMAN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Linear Programming

Md. Thasinul Abedin


MBA(Accounting); MSc (Economics and Finance)
Assistant Professor of Accounting and Finance
University of Chittagong

December 31, 2024

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What is Linear Programming (LP)??

LP: Linear programming is a mathematical


modeling technique that helps in resource
allocation decisions.
LP is being extensively used in taking managerial
decisions in the areas of marketing, production,
finance, and investment etc.

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Contents of an LP Problem

▶ Objective Function (Either Maximize or


Minimize)
▶ Available Alternatives
▶ Linear Constraints
▶ Certainty
▶ Divisibility
▶ Non-negative Variables

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Slack

SL = RA − RU

SL= Slack
RA= Amount of Resource Available
RU = Amount of Resource Used
Note: Slack (SL) is used for less than or equal to
constraints.

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Surplus

SR = AA − M A

SR=Surplus
AA= Actual Amount
M A= Minimum Amount
Note: Surplus (SR) is used for greater or equal to
constraints.

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Binding/Non-Binding Constraint

A constraint with zero SL or zero SR for the


optimal solution is called a binding constraint. A
constraint with positive SL or positive SR for the
optimal solution is called a non-binding constraint.

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