You are employed as the Cost Accountant of Gau Steel Technologies and your company is considering the use of Linear programming to achieve optimum resource allocation in its business operations. Your manager has asked you to investigate the advantages and disadvantages of using linear programming. He has assigned you the task of researching the costs and benefits of using linear programming in your company and submit your recommendations in the next management meeting.

Question 1 (20 Marks)

Your manager has specifically asked you to research on the following:

The definition of linear programming The assumptions underlying linear programming An example of an objective function equation and its variables Two examples of business problems in which linear programming can be used as a solution Limitations of linear programming The costs and benefits to your company Computer hardware, software and other specifications required to run Linear programming software effectively and efficiently A summary of your findings and recommendations