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Unit 2: Linear Programming Problems

2. Personnel Management Notes
3. Financial Management
4. Marketing Management
Apart from these areas it is used in agricultural operations, farm management and military
problems.
1. Production Management: In the area of production management, Linear Programming is
used in the field of:
 Product planning
 Research and development
 Product portfolio management

 Line expansion and contraction decision
 Longevity of product life cycle.
2. Personnel Management: In this area, LP is used in the field of:

 Recruitment and staffing decisions
 Wage or salary management
 Job evaluation and allocation
 Employee benefits and welfare
 Overtime and related decisions.

3. Financial Management: In this area, LP is used in the field of:
 Portfolio decision
 Profit planning

 Alternative capital investment decisions
 Investment on inventories
 Allocation of funds to developmental activities.
4. Marketing Management: In the area of marketing management, it is used in the field of:
 Media planning and selection

 Travelling salesman problem
 Product development
 Ad and Pro budget

 Marketing mix decisions.
2.3 Advantages and Limitations of Linear Programming

The LP technique has several advantages and at the same time, it is not free from unmixed
blessings. They have been put into T-type classification as under:

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