APPLIED BUSINESS TOOLS AND TECHNOLOGY

ASSIGNMENT 3

-LINEAR PROGRAMMING-

Submitted to: Prof. Regina C. Santos

Submitted by: Nicko I. Palomo

Introduction

Linear programming is a practical and straightforward method for efficiently managing

resources. It revolves around finding the best outcome within a set of clear-cut

limitations. This technique, known for its simplicity and effectiveness, is applied in

diverse fields like manufacturing, transportation, and finance. Linear programming is a

vital tool in solving complex problems with precision.

At its core, linear programming aims to find the most efficient solution while respecting

certain straightforward restrictions. These limitations can be things like production

capacities, budget constraints, or time limits. The visual representation of these

boundaries creates a straightforward area where the best solution lies. Through

practical techniques like the simplex method and interior-point method, linear

programming systematically explores this area, pinpointing the best solution. This direct

approach empowers decision-makers to make well-informed choices that boost

efficiency in various settings.

Body

There are three types of linear programming. First is the simplex method. According to

Stephen Wright (2022), simplex method is a widely used linear programming

methodology for addressing optimization problems. These problems generally involve a

function and a number of constraints that are stated as inequalities. The solution is often

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located at one of the vertices since the inequalities form a polygonal area. The vertices

are systematically examined as potential solutions using the simplex approach.

Illustrating the restrictions on a graph can help solve certain straightforward optimization

issues. However, only two-variable systems of inequalities may be solved using this

approach. In reality, there might be an incredible number of extreme points since issues

can contain hundreds of equations and thousands of variables.

Another type of linear programming is the Criss Cross method. According to research

conducted by Csizmada, Illes, and Nagy (2013), pivot algorithms that solve linear

programming problems in one step, beginning with any fundamental solution, are known

as crisscross method(s). Among the algorithms that Chang, Terlaky, and Wang first

separately developed for various optimization problems is the crisscross method. The

trace of a crisscross method is neither feasible preserving nor monotonic (with regard to

the objective function), in contrast to the simplex method, which takes a monotonic edge

path on the feasible region. Since then, the index selection criteria for the crisscross

method have evolved into a class of algorithms.

The ellipsoid method is the third and final type of linear programming. Saxena, S. (2018)

described the ellipsoid approach as the original linear programming method with

polynomial time. It is rarely addressed in computer science classes, nonetheless. In

reality, much of the most recent explanations start by describing the method and then

proceed on justifying that it is accurate. Furthermore, an adequate knowledge of linear

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algebra is necessary for comprehension (e.g., Jacobean and semidefinite matrix

characteristics).

In several disciplines, including operations research, economics, engineering, and

management, linear programming is an effective mathematical approach that is widely

utilized. It is mostly applied to circumstances where scarce resources are divided

among conflicting activities in order to accomplish a certain objective is necessary in

order to maximize resource allocation and decision-making. Organizations can utilize

linear programming to identify the greatest use of resources, reduce expenses, or

maximize revenues while abiding by rules and restrictions. Linear programming is a

critical tool increasing productivity, efficiency, and decision-making because of its

capacity to methodically and objectively handle difficult real-world situations.

Additionally, linear programming provides a methodical and clear way to solve

problems. The objective functions and restrictions that may be created due to its

mathematical formulation facilitate the modeling and analysis of complex systems. This

helps firms make better-informed and logical decisions while also streamlining the

decision-making process. Linear programming is a useful and adaptable technique for

resource allocation optimization, which leads to improved results in a variety of fields,

from supply chain management to financial strategy optimization, in a world where

resources are frequently few and competition is strong.

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Conclusion

Linear programming is a mathematical approach that helps us find the best way to

allocate resources when faced with constraints and objectives. It involves creating a

mathematical model with linear relationships between variables and aims to optimize a

specific objective, like maximizing profits or minimizing costs. It has three types namely

simplex method, crisscross method, and ellipsoid which vary in its functions. Linear

programming is not just about numbers and equations but a powerful tool that can be

applied to solve a wide range of complex, real-world problems, offering a structured and

rational framework for decision-making in various fields, leaving us to reflect on the

endless possibilities it unlocks.

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References

The Editor of Encyclopedia, Britannica. (2023). Science & Tech. Linear programming.

Mathematics. Britannica.

https://www.britannica.com/science/linear-programming-mathematics

Wright, S. J. (2022, October). Simplex Method. Linear Programming. Britannica.

https://www.britannica.com/topic/simplex-method

Csizmadia, Z., Illes, T., Nagy, A. (2013). The s-monotone index selection rule for

crisscross algorithms of linear complementarity problems. De Gruyter Open.

https://sciendo.com/abstract/journals/ausi/5/1/article-p103.xml

Saxena, S. (2018, June 17). Ellipsoid Method for Linear Programming made simple.

Indian Institute of Technology.

https://arxiv.org/pdf/1712.04637.pdf

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