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

Author(s)

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

Download Full PDF Pages: 92-95 | Views: 362 | Downloads: 105 | DOI: 10.5281/zenodo.3457749

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

References

  1. Akpan, E. O. P. (2012), Time/Cost tradeoff analysis: The Missing Link. Prime Journal of Engineering and Technology Research 1(2), 26- 31(www.primejournal.org/PJETR).
  2. E. O. P. Akpan (2001), Time/Cost Tradeoff Computation using Implicit Elimination Procedure. Technical Transactions of the Journal of the Nigerian Institution of Production Engineers 6(2), 101-117.
  3. Akpan, E. O. P. (1999), A Modified Internal Rate of Return Model for Capital Rationing in Project Selection in the Journal of Production Planning & Control 10(8), 809-814.
  4. Akpan, E. O. P. (1996), Job-shop Sequencing Problems via Network Scheduling Technique in the International Journal of Operations & Production Management 16( 3), 76-86.
  5. Azaron, A. (2005), A genetic algorithm approach for the time/cost trade-off in PERT network. Applied Mathematics and Computation 168(2), 1317-1339.
  6. Baumol, W. J. and Quandt, R. E. (1965), Inveestment and discount rates under capital rationing - a programming approach. The Economic Journal 75(298), 317-329
  7. Berhard, R. H. (1969), Mathematical programming models for capital rationing – a survey, generalizations and critique. Journal of Financial & Quantitative Analysis 4(2), 111-158.
  8. Bhaskar, K, N. (1976), Linear programming and capital budgeting: a reappraisal. Journal of Business, Finance & Accounting 3(3), 29-37
  9. Campbell, H. G., Smith, M. L., Dudek, R. A. (1970), A heuristic algorithm for the N jobs, machine sequencing problem, Management Science, 16, B630- B637.
  10. Drake, P. R. and Choudhry, I. A. (1997), Adapting a genetic algorithm to schedule variants of the manufacturing shop. Http/csswww.essex.ac.uk/conferences/upss ig/Liverpool-15/drake.doc.
  11. El-Gafy, M. A. (2007), Construction timecost trade-off using ant system. International Journal of Construction Education and Research, 3(2), 99-108
  12. Hegazy, T. (1999), Optimization of construction time/cost tradeoff analysis using genetic algorithms. Canadian Journal of Civil Engineering 26(6), 685- 697.
  13. Kelley, J. E. (1961), Critical path planning and scheduling: mathematical basis. Operations Research, 9(3), 296-320.
  14. Levin, R. I. and Kirkpatrick, C. A. (1978), Quantitative approaches to management. Tokyo: McGraw-Hill.
  15. Lorie, J. H. and Savage, L. J. (1995), Three problems in rationing capital. Journal of Business, 28(4), 227-239.
  16. Orman, M. M. and Duggan, T. E. (1999), Applying modern portfolio theory to upstream investment decision making. Journal of Petroleum Technology 51(3), 50-53.
  17. Phillip, S. and Dessouky, M. I. (1977), Solving the project time/cost tradeoff problem using minimal-cut concept. Management Science 24(4), 393-400.
  18. Robinson, D. R. (1975), A dynamic programming solution to cost/time tradeoff for CPM. Management Science 22(2), 158-166.
  19. van-Horne, J. C. (1980), Financial Management and Policy. Englewood Cliff : Prentice Hall Inc. New York
  20. Weingarten, H. M. (1963), Mathematical programming and the analysis of capital budgeting problems. Englewood Cliff : Prentice Hall Inc. New York

Cite this Article: