Discuss The Components and Characteristics of Maximization and Minimization Model

LINEAR PROGRAMMING: MODEL FORMULATION AND GRAPHICAL SOLUTION
Discuss the components and characteristics of maximization and minimization

model.
Linear programming is the mathematical technique used in business wherein
maximization and minimization of linear function under various restrictions and
situations is tested. Hence, it helps in many decision-makings an entity encounters.
Salvatore (2006), in his book Managerial Economics in a Global Economy, stated
examples of problems where linear programming is truly efficient and effective. To
enumerate, it aids in resolving optimal process selection, optimal product mix, satisfying
minimum product requirements, long-run capacity planning, and more. From the
definition itself, it focuses on different maximization and minimization model used for the
betterment of the business.
Generally, decision variables, an objective function, and constraints are the

components of linear programming. Decision variables represent levels of activity
through mathematical symbols. To illustrate, the production process of an entity can be
accessed through different models. Variable data needed are raw materials and the
production itself. With this, mathematical symbols like x and y are used to represent a
variable. Letter x can be used to denote the raw materials while y can be used to denote
the total production for the month.
On the other hand, the objective function reflects the goal of operations since it
defines the evaluation criteria. It converts a company problem into a mathematical
function of the decision variables that presents a numeral assessment of the solution.
Profit maximization and cost minimization are the two main objectives determined in
these components. For instance, the objective function may measure the profit or cost
that occurs depending on the amounts of various products produced.
For the last component, through the linear relationship in model control,
restrictions as to decision making are represented. It is a set of functional equalities or
inequalities that represent economic, legal, physical, ethical, technological, or other
restrictions on what numerical values can be assigned to variables. Certainly, resources
needed for the attainment of goals are not unlimited that is why constraints shall be set
forth. In brief, the three mentioned components aid in creating better decisions as to
maximization of profit or minimization of expenditures.
Moving forward, Kalpana (n.d.) enumerated the five chief characteristics of

maximization and minimization models. First is its objective function. The goals and
objectives of the business are necessarily set to know the purpose of establishing it. As
for linear function, maximization of profit or minimization of cost is mainly the goal.
Second, the constraint must be quantified in a mathematical language to determine the
scope and limitation of such a model. Third, variables inputted to the linear program
should range from zero to positive numbers but never the negative ones. Fourth tackles
linearity. The relationship among variables within the models shall be proportional.
Thus, making it linear. Last but not the least, inputs and outputs have an infinite
character.
Aside from the characteristics enumerated above, maximization and minimization

models also have other observable traits. Kumar (2015) added that the following are
also characteristics of the linear programming models: decision or activity variables &
their inter-relationship, finite objective function, presence of different alternatives,
additivity, mutually exclusive criterion, divisibility, and certainty of relevant parameters.
For decision or activity variables & their inter-relationship, variables within the model
should be rooted in a common ground. All the variables should have
interconnectedness for it to be tested in the linear programs. While finite objective
function means that the goals for processing the variables should be clearly defined.
Next, the presence of different alternative should also be observed as a reservation in
case things goes wrong. On the other hand, the additivity of model components means
that all the processes should equal the amount seen in the end like profit. Moving on,
mutually exclusive criterion claims that the occurrence of one variable removes the
simultaneous existence of the other. As for divisibility, it proves that variables,
components, and results need not be in the form of a whole number. Last is the
certainty of relevant parameters. Undeniably, mathematical techniques like linear
programming do not guarantee a result that is free from error. Hence, parameters as to
what is the inclusion and exclusions, and at the same time, the margins of errors should
be identified. Through the stated characteristics, maximization and minimization models
in linear programming help decision-makers to think logically.
Looking at the other aspects of linear programming, let us go down now with its
advantageous characteristics. First, it structures the thought process. It promotes
thinking and analyzing employing a concise manner to evaluate the conflict properly and
clearly. Also, the decision-makers can determine the things they can and cannot control
since modeling acts as a way of organizing and clarifying the problem. The second
advantage is it increases objectivity because mathematical models present assumptions
and criteria in a specified manner. Third, it makes complex problems more tractable. For
example, linear programming can differentiate analysis of various products by grouping
it into specific classes like through geographic locations. Fourth, linear programming
makes problems amenable to mathematical and computer solutions. All of the problems
are represented as mathematical problems that are why mathematical solution and
techniques are used in analyzation. For the last advantage, it facilitates “what if”
analysis. It helps in identifying prices, product availabilities, and demands used in the
formulation of models since such factors may vary accordingly. Through this, an optimal
solution within the specifically defined parameters.
However, linear programming models are also subject to limitations and

disadvantages. According to Pondent (2018), the assumption of linearity can also set a
limitation on the functions of the activity. He added that “there are certain ways of mixing
the inputs that a linear programming approach doesn't permit”. Models formed in linear
programming does not consider certain factors, such as increased production efficiency
during the increase in production level. Another limitation that he presented is in terms
of fractional values. In the real world, not all inputs and outputs are fractional. Linear
programming is not a suitable technique if even one variable involved has to be in
integer form.
Furthermore, Sherman (2018) added other disadvantages of linear programming.

He claimed that linear programming is only valid and useful if the model you use reflects
the real world. Every model may be ineffective since it depends upon certain
assumptions only. Also, it appears to be inflexible since there are circumstances that
have various possibilities that is why it does not fit in linear programming.
In the end, linear programming is useful for creating a process that leads to
optimum use of resources. Through the components that it possesses, the decision-
making stage becomes more logical and effective. And even if it has its limitations, still,
there are areas where linear programming can contribute a lot. In brief, it provides a
helping hand in the business to have a better problem-solving foundation.
References:
Kalpana, R. (n.d.). Linear Programming: Meaning, Characteristics, Assumption and
other Details. Retrieved from:
https://www.businessmanagementideas.com/business-management/linear-
programming-meaning-characteristics-assumption-and-other-details/537
Pondent, C. (2015). Limitations & Advantages of Linear Programming. Retrieved from:

https://bizfluent.com/info-8717868-limitations-advantages-linear-programming.html
Salvatore, D. (2015). Managerial Economics in a Global Economy. Retrieved from:

https://global.oup.com/us/companion.websites/9780199811786/pdf/linear_prog_cha
pter
Sherman, F. (2018). The Disadvantages of Linear Programming. Retrieved from:

https://sciencing.com/info-12195571-disadvantages-linear-programming.html

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LINEAR PROGRAMMING: MODEL FORMULATION AND GRAPHICAL SOLUTION

Discuss the components and characteristics of maximization and minimization

Generally, decision variables, an objective function, and constraints are the

Moving forward, Kalpana (n.d.) enumerated the five chief characteristics of

Aside from the characteristics enumerated above, maximization and minimization

However, linear programming models are also subject to limitations and

Furthermore, Sherman (2018) added other disadvantages of linear programming.

Pondent, C. (2015). Limitations & Advantages of Linear Programming. Retrieved from:

Salvatore, D. (2015). Managerial Economics in a Global Economy. Retrieved from:

Sherman, F. (2018). The Disadvantages of Linear Programming. Retrieved from:

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