An Application of Linear Programming for Efficient Resource Allocation

Abstract

Every business organisation exits primarily to make profit while ensuring its continued existence. In a bid to maximise profit with the limited available resources, it becomes imperative therefore that efficient allocation be made of these resources. This paper ex-rays the concept of linear programming as an optimisation technique for maximising profit with the available resources. It goes further to address a problem encountered by a business (Eat Plaza)who due to an increment in price of raw material wants to strim- line its production. The linear programming model is used to analyse this problem and an optimum solution is reached as well as relevant recommendations to the management.

Keywords: linear programming model, limited resources, optimum, profit