Simplex Method Paper and Presentation

Published: 2021-09-13 14:20:10
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Simplex Method Paper and Presentation
TAB Furniture Company manufactures high quality wooden office and residential furniture. Since 1998, this privately owned, family operated company employs 85 people, operating from one location in Houston, TX. Sustaining the company for 13 years, business could continue without interruption. However, imparting lean operations proves to create profit maximization leading to strengthening the company's market position and longevity.
Currently, TAB's management expresses concern over the cost of labor. A directive to optimize the level of production to maximize profit comes as no surprise to the company's laborers. One problem area arises with the production of chairs and tables. Evidencing a failure to meet labor limitations necessitates pinpointing the problem and its constraints as vital components to move forward with lean production measures. Identifying the optimal method to maximize profits occurs with the essential labor hours for the production of chairs and tables. Therefore, applying the Simplex Method to obtain fundamental data supports management's decision to detect ways in reducing labor costs.
Linear Programming
Today's competitive environment compels firms to develop strategies and methods to minimize costs. However, with the complex nature of production, increasing costs, and various other considerations, multiple constraints emerge. In this regard, to maximize profits given specified constraints, formulating methods of operations maintain optimal use of scarce resources to maximize profit for the company.
Linear programming is an effective method used to help an organization allocate scarce resources and maximize profits. A linear program model consists of the following components:
* Objective function: this function provides the relationship of decision variables. The objective function is the equation subject to optimization.
* Constraints: this refers to the availability of resources; it defines the limitations or constraints facing the firm. Constraints are inequality problems and therefore equal to or less than the amount of available resources.
* Slack variables: these variables capture the unused resources in every constraint. Slacks are included in the objective function but given a coefficient of zero.
Linear programming takes into account technology or the criteria of selecting the best value for decision variables given the constraints a firm faces. Linear programming is a very important operations research model. In business analysis, linear programming model by construction relates market prices, output (decision variables), technology, and cost equation in the form of an objective function. It integrates resource constraints to provide a complete model used to obtain the optimal level of production given certain limiting conditions called constraints.
Simplex Method

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