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linear programming

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Definition of linear programming

Linear Programming Image 1

linear programming

a method of mathematical programming used to solve a problem that involves an objective function and multiple limiting factors or constraints long-term variable cost a cost that was traditionally viewed as a fixed cost


Linear programming

Technique for finding the maximum value of some equation subject to stated linear constraints.



Related Terms:

decision variable

an unknown item for which a linear programming
problem is being solved


feasible solution

a solution to a linear programming problem
that does not violate any problem constraints


Integer programming

Variant of linear programming whereby the solution values must be integers.


non-negativity constraint

a restriction in a linear programming
problem stating that negative values for physical
quantities cannot exist in a solution



objective function

the linear mathematical equation that
states the purpose of a linear programming problem


optimal solution

the solution to a linear programming problem
that provides the best answer to the objective function


Linear Programming Image 2

Q ratio or Tobin's Q ratio

Market value of a firm's assets divided by replacement value of the firm's assets.
Quadratic programming Variant of linear programming whereby the equations are quadratic rather than linear.


simplex method

an iterative (sequential) algorithm used to solve multivariable, multiconstraint linear programming problems


slack variable

a variable used in a linear programming problem
that represents the unused amount of a resource at
any level of operation; it is associated with less-than-orequal-
to constraints


surplus variable

a variable used in a linear programming problem that represents overachievement of a minimum requirement; it is associated with greater-than-or-equal-to constraints


integer programming

a mathematical programming technique in which all solutions for variables must be restricted to whole numbers


Linear regression

A statistical technique for fitting a straight line to a set of data points.


Log-linear least-squares method

A statistical technique for fitting a curve to a set of data points. One of the
variables is transformed by taking its logarithm, and then a straight line is fitted to the transformed set of data
points.


Mathematical programming

An operations research technique that solves problems in which an optimal
value is sought subject to specified constraints. Mathematical programming models include linear
programming, quadratic programming, and dynamic programming.


mathematical programming

a variety of techniques used
to allocate limited resources among activities to achieve a
specific objective


Planning, programming and budgeting system (PPBS)

A method of budgeting in which budgets are allocated to projects or programmes rather than to responsibility centres.


Simple linear regression

A regression analysis between only two variables, one dependent and the other explanatory.



Simple linear trend model

An extrapolative statistical model that asserts that earnings have a base level and
grow at a constant amount each period.


Zero-one integer programming

An analytical method that can be used to determine the solution to a capital
rationing problem.


feasible region

the graphical space contained within and on
all of the constraint lines in the graphical solution to a linear
programming problem



 

 

 

 

 

 

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