Linear Programming was the last of 4 major topics covered in the Decision Support Systems class I took at U.C.F. over the Fall 2008. Here you’ll find a brief overview of how useful this technique can be for managers, and you’ll find my final project attached.
What is Linear Programming
Linear Programming is a technique that helps in resource allocation decisions. Problems seek to maximize or minimize an objective. Common solutions to problems seek to maximize profit and/or minimize costs.
In Linear Programming, variables are assumed to have a linear relationship. In very simple terms, it all comes down to setting up a linear equation and a set of constraints you need to meet (you can take a look at the attached report for an overview of how all this works). Common constraints include non-negativity, integer required, one/zero required (or yes/no). Then, this information can be inserted into DSS software such as POM-QM for windows.
My DSS Final Project
My final project for the class consisted of the preparation of 3 reports with the results of my linear programming analysis of the tasks given. The first task asked for the analysis of Promo Marketing data. The client wanted to exposure as many ads as possible at the lowest cost possible, with several age constraints involved. The second task consisted of the data analysis of a park upgrade project, in which the client wanted to know what the best course of action to take, given costs, customer satisfaction and profit.
Conclusion
Linear Programming is not an easy concept to grasp. Setting up of the initial LP maximization/minimization equation is the most important step. Then, with the assistance of DSS software, the results provided are of extreme usefulness for management.
Sources
Fred Duarte’s Redwood D – Final
Quantitative Analysis for Management 10th Edition
Wiki Linear Programming
