Definition of Linear programming

Linear programming

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

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

Integer programming

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

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.

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

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

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

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.

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.

Planning, programming and budgeting system (PPBS)

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

integer programming

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

mathematical programming

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

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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