Application of Linear Programming to Production Systems Problem: A Critique.

Author(s)

Benedict Amade , Edem O. P. Akpan , Charles N. Ononuju ,

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Volume 3 - October 2014 (10)

Abstract

the application of linear programming to optimization problems has wider acceptance and dominance to the extent that few would question its veracity. However, many problems especially in the areas of project management appear to have defied linear programming approaches in the search for optimal solution even though many have continued to use the technique without any verification as to the authenticity of the solution. Two of such cases earlier studied exhibited this tendency – the capital rationing problem as well as that of time/ cost trade-off analysis. The problem seems to lie at those assumptions associated with model formulation, which necessitated the use of linear programming in the first instance. This paper is an attempt to look into the historical perspective with a view to eliciting more comments and researches for a more appropriate solution especially in an industrial setting.

Keywords

Linear programming, internal rate of return, capital rationing, , time/cost trade-off analysis, optimization problems

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