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What are the practical applications of Linear programming?

Linear programming can be used to find optional solutions under constraints.

In production:

• Product  mix under capacity constraints to minimise costs/maximise profits along with marginal costing.

• Inventory management to minimize holding cost, warehousing / transporting from factories to warehouses etc.

Sensitivity Analysis: 

By providing a range of feasible solutions to decide on discounts on selling price, decisions to make or buy.
Blending: Optional blending of raw materials under supply constraints.

Finance: Portfolio management, interest/receivables management.

Advertisement mix: In advertising campaign – analogous to production management and production mix.

Assignment of personnel to jobs and resource allocation problems.

However, the validity will depend on the manager’s ability to establish a proper linear relationship among variables considered.
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