Linear Programming

Linear Programming is a mathematical method for determining the best possible outcome in a given situation, usually related to maximizing profit or minimizing cost. It’s kind of like planning the best route on a road trip to visit as many cities as possible with the least amount of driving. In business intelligence and data analytics, linear programming is used to solve complex problems where you need to decide the best combination of actions, such as how many of each product a factory should make to maximize profits while considering constraints like labor hours and material costs.

The “linear” in linear programming means that the relationships between the different variables you’re dealing with are proportional. This makes the math behind it relatively straightforward and solvable using specific algorithms. For instance, if doubling the amount of resources doubles the outputs, that’s a linear relationship.

Companies use linear programming to optimize operations in areas like manufacturing, transportation, and workforce management. By inputting different constraints and objectives into a linear programming model, they can find out the most efficient way to use their resources. It’s a powerful tool that helps decision-makers in businesses to see their options more clearly and make smarter choices based on solid math, rather than guesswork or intuition.