Assumptions for Resolving Linear Programming Problems
There are certain assumptions related to the application of linear programming.
In here, the objective function is directly proportional to individual constraints.
- Constant and Certain
This states that the available resources are according to the requirements in the production of commodities, which is certain and remains constant.
- Variables which are positive
Values of decision variables which are represented as solution in real life models are usually positive (non-negative). This is because values associated with physical commodities or products can never be negative. You can never state a production value as minus 5 ovens.
Links of Previous Main Topic:-
- Capitalization meaning
- Concepts of working capital
- Concept of capital expenditure
- Learning objectives and chapter outline
- Limitations of operations research
- Linear programming learning objectives and outline of chapter
Links of Next Finance Topics:-