Depicted as a mathematical technique, linear programming is utilised in an ideal manner to assign limited resources to a specific number of demands. This technique is very helpful in selecting the best among the available set of alternatives. Linear programming is generally used by management bodies who uses this technique to get the best from their resources. According to them, any skilled, partially skilled or unskilled human resources should be put to most favourable use.

Similar to human resources, resources related to materials like machinery should be utilised in a productive method. In this technique, time is considered both an important aspect as well as a resource where the assigned work should be completed within the deadline. These are certain conditions that should be met in the application of linear programming.

There are 2 well-defined objectives which companies usually follow with this technique.

- Decrease the costing involved
- Increasing the profit margin

This objective function is also stated as alinear function of variables which is used by firms for decision making.

In order to reduce the costing, thereby increasing the profit margin to a certain level, constraint should be put on the availability of the resources. This is also counted among the objective functions.

As stated before in management decisions, linear relationship between two or more items in it is established because of linear programming technique. In this case, the meaning of linear stands to be directly proportional. If stated in simplified words, if there is an increase of 10% in manpower, a work’s output will also have 10% increase.

In order to select the best from available resources, organisations should use analternative course of action. For example, a factory manufactured 3 different commodities and had to cut down one due to the shortage of resources; it should know which had to be shut down.

This decision making alternative choice can make their work easy giving them the required solution, and they can also use this technique of linear programming with it.

The mathematical expression should always be used yo express objective functions. This expression helps us to relate the relationship between an objective and its limitations.

In this mathematical expression, linear equations fall in the first degree. The expression can be explained via an example of 2 different variables (x and y). In such linear expression where the variables have different values, the equation here is,

5x + 10y = 20

But if the variables are in squares, equation like 5x^{2 }+ 10y^{2} = 200 will not be stated as first degree equation. This will fall in the second degree equation.

**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:-**

- Formulation of linear programming problem
- Assumptions for resolving linear programming problems
- Potential applications of linear programming problems
- Introduction learning objectives
- Duality in linear programming
- Learning objectives
- Learning objectives and chapter outline in assignment model
- Minimization problems
- Learning objectives the transportation problems