Linear Programming, Decision Theory and Business Forecasting Free Essay Example, 2000 words

In general, it is quite essential to state that the aim of linear programming techniques is to seek the optimal solutions among a set of alternatives available at a time. Lev and Kowalski (2009) attempted to develop an alternative optimization method that would simplify the solution-seeking process. The new technique that the authors present involves the introduction of bounded variables that eliminate the need for additional variables for preserving non-negativity. This implies that the new variables introduced to take a possible range of values, unlike in the Simplex method where a single value for an introduced slack variable is usually introduced. Furthermore, the need for substituting variables is eliminated and operations remain on the original equations. The perpetuation of errors through the process is easily eliminated when the proposed method is employed. This is because a similar variable evaluation process is employed afresh whenever another variable is being investigate d. The proposed method dwells on the principle of linearity. The procedure begins by seeking an initial feasible solution using established methods. The analyst then moves to select m+1 loose variables for analysis. Out of these variables, m are computed to comply with the provided constraints while the extra one is adjusted by one unit (either increased or decreased) from its original value. We will write a custom essay sample on Linear Programming, Decision Theory and Business Forecasting or any topic specifically for you Only $17.96 $11.86/page The desired change in the value of z results in bound violation for every tight variable (a variable whose value is equal to its bounds) in case the solution is optimal.