Ch 2 Flashcards
(10 cards)
A METHOD USED BY COMPANIES TO ACHIEVE THE “BEST” OUTPUT (MAXIMUM PROFIT OR LOWEST COST) *THE METHOD IS USED TO REMOVE ALL THE POSSIBLE INEQUALITIES THAT MAY HINDRANCE A SPECIFIC PROCESS IN ORDER TO ACHIEVE THE ULTIMATE OBJECTIVE
Linear Programming
Linear programming used to ______________ RESULTS, UTILIZING
PERTINENT DATA (SECONDARY DATA)
UTILIZED BY VARIOUS MANAGERS TO SUPPORT DECISIONS WITH
REGARDS TO OPERATIONS, INVESTMENTS, ACQUISITIONS AND
THE LIKES
TO FORECAST OR PREDICT
IN PRODUCTION, THE LIMITATIONS IN TERMS OF LABOR AND RAW MATERIALS
MUST BE IDENTIFIED IN ORDER TO DETERMINE THE __________________,
HENCE, ACHIEVING POSSIBLE HIGHEST PROFIT
LEVEL OF PRODUCTION
UTILIZATION OF LINEAR PROGRAMMING:
*PRODUCT MIX PLANNING
*DISTRIBUTION NETWORKS
*TRUCK ROUTING
*STAFF SCHEDULING
*FINANCIAL PORTFOLIOS
*CORPORATE RESTRUCTURING
*USE TO PREDICT PROBLEMS IN TERMS OF PROCESSES
*COMMONLY USED BY MANUFACTURING INDUSTRY
Programming in operation
*USE TO FORECAST THE NEEDED LABOR FORCE BASED ON
THE NEED OF THE ORGANIZATION
*PAST AND CURRENT DATA ARE BEING UTILIZED
Programming in human resources
*USE TO IDENTIFY WHICH STRATEGIES CAN BRING THE
HIGHEST REVENUE FOR THE ORGANIZATION
*USE TO DETERMINE WHICH PRODUCT/SERVICES MAY BE
DEVELOP TO ENSURE A LARGE MARKET SHARE
Programming in marketing
*USE TO DETERMINE WHICH ACTIVITY CAN LEAD THE
ORGANIZATION TO ITS OPTIMAL PERFORMANCE IN TERMS OF
MAXIMIZING PROFIT AND LOWERING OPERATIONAL COSTS
Programming in finance
IN GENERAL, LINEAR PROGRAMMING UTILIZE ALL SCIENTIFIC
INFORMATION TO _____________ RESULTS THAT
ARE FAVORABLE TO THE ORGANIZATION
VARIOUS FACTORS ARE CONSIDERED IN ORDER TO PERFORM _____________
PREDICT OR FORECAST
LINEAR REGRESSION
HOW TO INTERPRET RESULTS FROM
LINEAR PROGRAMMING?
RESULTS ARE BASED ON A SIMPLE LINEAR EQUATION (STRAIGHT
LINE APPROACH) AND THE INTERPRETATION VARIES DEPENDING
ON THE BUSINESS OPERATION AS WELL AS THE FACTORS USED IN
THE PROCESS
