Linear programming is the name given to a collection of tools that are among the most widely used in management science. It is essentially a technique that encompasses the problem of allocating scarce resources between competing activities in order to maximize or minimize some numerical quantity, such as contribution or costs. This CPE course includes a step-by-step technique which requires the translation of a decision problem into a system of variables, equations and inequalities. In addition, it explores minimization problems, the slack, shadow price, as well as limitations to linear programming.
▪ Apply elements of linear programming to short term pricing and product decisions.
▪ Identify ‘optimal’ solutions based on analysis of product mix, including circumstances where linear programming methods are used.
▪ Step-by-step technique.
▪ Minimization problems.
▪ The slack.
▪ The shadow price.
▪ Linear programming and decision making: minimal contractual requirements.
▪ Limitations to linear programming.
Management accountants wanting to develop skills in financial performance management.
CGMA exam candidates.