Linear Programming Usage
Introduction
Linear programming is a mathematical technique, which is widely used in business to address issues such maximization of profits, minimization of the costs as well as ensuring that the available resources are properly utilized. From the points of view of is application, linear programming is used in the rationalization of various managerial and technological decisions. In this context, the present paper presents a discussion of how LP could be applied for a future position in management.
Use of linear programming as a production manager
Linear programming has a wide application in addressing various production issues. In this case, a production manager could manage to apply linear programming to achieve efficiency in production.One of the significant uses of LP is the decision of the product mix, which maximizes the output. In the case of a manufacturing company, it may be in a position where it is producing several products at different quantities (Šlaichová, Štichhauerová & Turčok, 2014).
They may also be manufactured using several machines. In this situation, the issue arises in formulating the most effective course of action, which will minimize the cost, and at the same time maximize the output. Linear programming would be mathematically be applied, to calculate the optimum product mix, their quantities, and machinery to use, to achieve these objectives (Qi, Tian & Shi, 2014).Additionally, Šlaichová, Štichhauerová & Turčok (2014) illustrates that each product mix produced within an organization requires a specific amount of limited resources. As a result, it significant to accurately determine the quantity of each product, which will be produced, with regard to the profit margin and the required inputs (Song, Dong & Xu, 2014). In this situation, the LP would be applied to determine the product mix, which would maximize the firm’s profit, subject to the limiting factors (Šlaichová, Štichhauerová & Turčok, 2014).
Production managers could also apply linear programming in mixing or blending problem. It arises in cases where the different varieties of raw materials are used in the production of the same product. Each of these products has fixed cost and composition. In this case, linear programming helps in determination of the minimum cost blend (Qi, Tian & Shi, 2014). The objective, in this case, involves the minimization of the product cost, while the raw materials and other costs functions as the constraints.In the same context, production managers can use the linear programming technique in the management of the inventory. As explained by Song, Dong & Xu (2014), the inventory management, both for the raw materials and finished products is quite sensitive.
The reason is that in the case of minimum stock, the firm may not be able to meet its customer demands. It may also incur stock-out costs. Similarly, in the case of excess inventory, it may lead to the incurrence of high holding cost than it is necessary (Qi, Tian & Shi, 2014). To avoid these costs, linear programming is applied to achieve …
