Computers as aids to management decisions: application to linear programming

Abstract

The variables that need to be incorporated into management decision-making have increased manifold. At the same time, the magnitude of inputs that have to be committed to projects has increased considerably making sub-optimal decisions very expensive. Hence the need to use advanced methods to aid decision-making, While there exist concepts and tools that allow a formal incorporation of these complex factors into decision-making, there has been a dearth of requisite data and a lack of capabilities to process the data quickly. Computers have now made possible the application of formal quantitative methods as aids to better decision-making,, In this article are discussed some aspects of applying some of these quantitative concepts and tools to certain types of complex business problems. Specifically, the application of linear programming to product-mix planning in a textile mill and to scheduling problems in a transport undertaking are discussed.