LINEAR PROGRAMMING IN RESOURCE ALLOCATION: OPTIMIZING DECISION-MAKING IN MANAGEMENT

Abstract

Linear programming (LP) is a powerful mathematical technique used to optimize resource allocation in business and management. By modeling complex decision problems with linear relationships, LP helps managers determine the most efficient use of limited resources, whether in production, logistics, staffing, or financial investments. This article provides an in-depth examination of linear programming as a tool for resource allocation, discussing its fundamental concepts, applications, and the steps involved in formulating and solving LP problems. It highlights how LP models can guide decision-making in various industries, offering real-world examples of its use in production planning, supply chain management, and workforce optimization. The paper also explores the limitations of LP, such as the requirement for linearity in the relationships and assumptions of certainty, and offers solutions to overcome these constraints through extensions like integer programming and nonlinear programming.