Linear programming deals with the optimization (maximization or minimization) of an entity (or function), known as the objective function, which are subjected to certain constraints, which are a set of linear equations. The objective function may be profit, cost, production capacity or any other measure of effectiveness, which needs to be obtained in the best possible manner. Constraints may be imposed on different resources such as market demand, production process and equipment, storage capacity, raw material availability and the likes.

Applications of linear programming:

• Personnel assignment problem: If ‘x’ number of workers have to perform ‘y’ numbers of jobs, an assignment of each person to a job has to be done such that the overall productivity is optimized, whether it be minimum cost, or minimum time taken, or maximum profit.
• Transportation problem: This helps in minimizing the cost of transport between source and delivery point.
• Optimum estimation of employee compensation: The objective here is to determine a consistent plan of employee compensation, by taking into account salary, job ranking etc.
• Production management: Linear programming can be applied to determine product mix, and assembly time balancing.
• Marketing management: Linear programming helps in analyzing the effectiveness of advertising campaigns, and time based on the available advertising media. It also helps a sales person to find the shortest route while travelling.