L1 - Linear Programming

Question 1

What are some other names for management science?

Answer 1

• Operaitonal research
• decision science
• quantitative methods

Question 2

What are Optimising models?

Answer 2

• find the best (or optimum)
  courses of action
  • linear programming

Question 3

What are Experimental Models?

Answer 3

• experiment with alternative
  courses of action
  • simulation models

Question 4

What is Linear Programming?

Answer 4

Linear programming (LP) is a commonly used
mathematical method that seeks the best allocation of
resources to competing activities.

Question 5

What are the key step of Linear Programming?

Answer 5

Formulation - what is the problem?
- Decision variables
• Objective function
• Constraints

Solution: what is the best (optimal) solution?
• Graphical solutions of simple problems
• Computer solutions

Question 6

What are some Assumptions of Linear Programming?

Answer 6

• Single objective –> maximise or minimise one thing
• Linearity (proportionality)
• Divisibility
• Certainty –> the problem is solved for the certain number we have specified

Question 7

How realistic are the assumptions of Linear Programming?

Answer 7

• Linearity –> not realistic as people can ask for discounts, negotiate prices or Economies of Scale
• Single Objective –> companies dont think of one single objective in one go, normally want alot of things
• certainty –> numbers change e.g. maintenance hours could differ due to illness, budget could change due to more prominent matter - LP expect you to take out all of that uncertainty and take the numbers as fixed
• Divisibility –> cant have integers of aircraft for example –> while excel allows you to set certain variable to be integers for large complex equations this makes the model extremely inaccurate

Question 8

Do the assumptions of Linear Programming mean the models are not good?

Answer 8

• Linearity –> no as it can give you a general solution and you can then use that as a basis to negotiate a better deal
• Single Objective –> not necessarily because you specify you main objective and put the others as an acceptable constraint
• Certainty –> help gives a general estimate, and just recalculate for different numbers for difference hours.
• Divisibilty –> can give a general estimate and can round the answer