- In Operation Research, Linear Programming Model is used to find a solution for optimising a problem or objective.
- The objective may to maximise or minimise a problem.
- Both Objective Function and Constraints must be expressed in linear expressions.
INVENTORY CONTROL METHOD
- Inventory model helps in optimising problems related to the stock of goods like when to buy, how much to buy, how much to keep in stock etc.
- When there is more than one goal, i.e., several objectives (a real life situation).
- These several objectives have their own goals to complete.
- This type of model is totally based on the concept of probability.
- Indicates system ability and changes possible on modifying.
- This can’t be seen as an optimising process.
- This model provides the balance between customer waiting time and service capability of the system.
- This model minimises (studies) the cost of transporting a commodity from different sources to their destinations.
- The demand and supply are known, and this model develops an integral transportation schedule.
- A special case of Transportation problem.
- Deals with problems involving allocation of ‘n’ different facilities o ‘n’ different tasks.
- Its objective is to minimise cost or time of completing ‘n’ jobs by ‘n’ persons and maximise revenue and sales.
- This model is mostly used for planning.
- A special type of technique (a network of inter-connected components) used for planning, management and control of projects.
- In this type, a project is broken down into different components (activities, duration, time etc.), each defined by completion time (start to finish) and a relationship.
- PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method) are the two Network Analysis techniques developed in the 1950s.