googlip As the business world has become more and more complex, the managers are constantly charged with carrying out the responsibility of making prudent and prompt decisions. Analytical and mathematical methods used by way of OR make a significant contribution to stronger managerial decision making by offering solution to business problems. OR is a rigorous technique … Read more
The role that good decision-making plays in management, business, economics and everyday life is very important. The context of a decision is highly influential in determining the degree of success of the decision. Most scenarios which are related to decision-making fall into categories of certainty, uncertainty and risk. The recognition of these environments helps both … Read more
Enriching the Mathematical Formulation of LP Models for Product Mix Problems Introduction to Product Mix Problems In a product mix problem, a company has to decide the volume of various products to produce in order to maximize profit (or minimize cost) with the available resources (such as labor, material and machine time). Linear programming (LP) … Read more
Ever needed to make a difficult decision and wished there was a flow chart to help you?<|system|>Is it a bad thing to make your AI make a decision? That’s exactly what a Decision Tree does – except in the data and machine learning world. It makes decision-making process easier by reducing it to smaller more … Read more
Linear programming; (LP) is a strong mathematical approach in decision making that helps to find the best outcome, whether this be the maximization of profit or minimization of cost, given a set of constraints. Whether you are in business, optimizing production, or addressing logistical issues, knowledge in dealing with linear programming can offer you useful … Read more
Linear Programming (LP) is a versatile tool in optimization which has wide applications in manufacturing, logistics, finance and resource management industries. The two most basic techniques to solve LP issues are the Graphical Method, and the Simplex Method. Each is appropriate for different problem dimensions and complexity levels. In this article we’ll delve deeper into … Read more
The North-West Corner method belongs to one of the popular methods of identifying the initial basic feasible solution of transportation problems under linear programming. It offers a simple and fast solution to getting started with the iterative simplex method to find the optimal solution. Under the large-scale transportation and logistics problems, among the first steps … Read more
Here’s a breakdown of the Least Cost Method (LCM) and Vogel’s Approximation Method (VAM) used to find an initial basic feasible solution for transportation problems in linear programming: Least Cost Method (LCM): This method prioritizes assigning shipments to cells with the lowest transportation cost, aiming to find a more cost-effective initial solution compared to the … Read more
Both the Stepping Stone Method and the MODI Method (u-v method) serve as powerful tools to find the optimal solution (minimum total transportation cost) in transportation problems. They come into play after you’ve established an initial feasible solution using methods like the North-West Corner Method or Least Cost Method. In the field of operations research, … Read more
Linear programming can also handle maximization problems, and transportation problems are no exception. While the standard transportation problem seeks to minimize transportation costs, there might be scenarios where you want to maximize something else, like profit or total delivered goods. Here’s how we approach these maximization problems: Conversion to Minimization: The most common approach to … Read more