Problem: An Operations Manager would like to understand how linear programming (LP) can be used to attain optimum solutions when allocating scarce organizational resources. He/She has the following questions:
Q1. What is LP? How is an LP problem defined
Q2. Define objective function, constraint, and decision variable
Q3. Our firm makes two products: Y and Z. Suppose that each unity of Y costs $10 and sells for $40. Each unit of Z costs $5 and sells for $25. If the firm's goal were to maximize profit, what is the appropriate objective function?
Q4. An LP problem must be "solved." One solution method is the corner point solution. How is this method applied? What gets solved in an LP problem? Are other solution methodologies available.