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Potential Applications Of Lp

Some real life situations, where LP is very useful are given below.

1.Product Mix Problem

Organizations often face the problems of making decision to manufacture different quantities of products, with the constraint of manpower, machines, availability of raw materials etc. The idea is to minimize cost of production or maximization of profit under a given set of conditions.

2.Transportation Problems.

LP finds typical use in finding solution to such problems. The problem is to transport products froma number of sources to a number of destinations with minimum cost. These are the real life situations where the goods have to be moved from the factory premises to warehouses in different parts of the country or from warehouses to Clearing and Forwarding (C &F) agents and so on. How many goods should be transported to meet the demands of different destinations so that the cost of transportation is minimum, can best be decided by use of LP.

3.Blending Problems

Large number of products use different types and quantities of raw materials. For example in textiles industry a number of raw materials are used. The idea is to make available different raw materials (with different specifications) in such quantities so that the product is manufactured at minimum raw material cost. Such problem are called blending problems.

4.The Diet Problem

This problem arises when one has to decide mixing of different type of foods to get a particular amount of nutritional values with. minimizing cost of purchasing the diet. Hospitals can use LP methods for solving such problems.

5.Investment Decisions (Portfolio selection) problem

This is a very common problem with those who want to make use of different investment opportunities. When the amount to be invested is fixed and .different opportunities like investment in shares, bonds, mutual funds, post office schemes, banks etc are available, LP method can provide us the solution to get maximum returns.

6.Use of LP by Airlines.

Operation of airlines routes is a very complex problem. With limited aircrafts and large number of destinations airlines would like to operate in the most economic routes at particular flight timings. LP is a very useful technique for solving such problems.