Linear programming, Managerial Accounting

Linear Programming
   
This section introduces the general method called the simplex algorithm, which is designed to solve any linear program. The information that can be secured from the simplex method goes beyond determining the optimum values of the variables. Indeed, it provides important economic interpretations of the problem and shows how sensitivity analyses can be carried out algebraically.

The simplex method solves linear programming in iterations where the same computational steps are repeated a number of times before the optimum are reached.

The Standard Form of the LP Model:

An LP model may include constraints of the types ≤, =, and ≥. Moreover, the variables may be non-negative or unrestricted in sign.  In order to develop a general solution method, the LP problem must be put in a common format, which we call the standard form. The properties of the standard LP form are:

1) All constraints are the equations with non-negative right-hand side.
2) All the variables are non-negative.
3) The objective function might be maximization or minimization.

Posted Date: 12/7/2012 6:04:08 AM | Location : United States







Related Discussions:- Linear programming, Assignment Help, Ask Question on Linear programming, Get Answer, Expert's Help, Linear programming Discussions

Write discussion on Linear programming
Your posts are moderated
Related Questions
Gather Data about Alternatives When potential areas of activity are specified, management must assess the potential growth rate of the activities, the capability of the company

Kaizen and management Management has two major components: 1) Maintenance 2) Improvement. The aim of  the maintenance function is to maintain current technological man

Explain product cost Product costs are those costs which are associated with and directly identifiable with the product. In other words, which are assigned to the product are p

Extensions to Linear Programming In many real situations the solutions to linear programming models make sense only if they have integer values. Rounding off the linear programmi

Advance Factoring and Maturity Factoring: In both recourse and non-recourse factoring whether the factor advances cash against book debts to the client instantly on assignment

Classification of ratio according to significance   The ratios have also been classified according to their significance. Some ratios are more important than other and the fir

Integer Programming It is a technique for solving a linear programming model with an added constraint that the decision variables must only be non-negative integers. In the

Question: A company has budgeted to produce and sell 10,000 units of a product, the selling price and the variable cost per unit of which is Rs 20 and Rs 12 respectively. Fixe

Difference between a fixed and flexible budget Fixed budget A fixed budget remains the same irrespective of changed situations. It remains inflexible even if volume of

Decision-making is an integral part of all management functions. It is the process of choosing the among alternative courses of action. Managers have to