A comprehensive look at the compensation methods and benefit program is necessary to reveal any holes in the system. The company will then explore the many options available to it when deciding on a compensation package suite to both the employee and the organization. An objective function is when you have one word that is the keyword. And that keyword Is either minimized or maximized. You can do this to a name, colon, or a linear equation. “Although a particular linear program must have one objective function, a model may contain more than one objective declaration. (Fourier, Gay, & Kernighan, 2003, pig. 34, Chapter 8). Constraints are a little different than objective functions. But they do have some similarities. The Similarities are that they both use a keyword the only thing is in constraints you do not have to have a beginning keyword like you do in and objective function. “The name off constraint, like the name of an objective, is not used anywhere else in an algebraic model” (Fourier, Gay, Kernighan, 2003, pig. 134, Chapter 8). Both the objective function and constraints work well together you cannot use one without using the other. The simplex method was invented by Gorge B.
Dating in 1947. The simplex method is the most superior tool used today in most applications of linear programming. Tangle’s work has been honored many times. To name a few, The National Medal of Science In 1975, the Jon Von Neumann Theory Prize of the Operations Research Society of America, and the Institute of Management Science, In 1974. He believed that the greatest theories must pass the final test of being able to solve the problem that originated it (Dating, 1994). He worked with the U. S. Air Force where he became an expert on planning methods solved with your every day desk calculator.
At the time this was called “programming”, a term used by the military referring to plans or schedules for the training, deployment of men and logistical supply for them. Today, many industries use the simplex method to maximize or minimize profits and costs throughout the company. Management within these companies uses the simplex method to disperse scarce resources amongst the company. Industries use the simplex method to find the best way to allocate these resources such as labor, trials, machines and capital (Using the Simplex Method – Oregon State University Extension Service, 1998).
Simplex Method within Winter Technologies use of the simplex method will be demonstrated to solve a common resource allocation situation faced by many companies. Winter Technologies has been has the following resources available to work on the project. Technical resource one costs $1 5/hour and is available for a maximum of 30 hours. Technical resource 2 costs $20/hour and is available a maximum of 40 hours. Technical resource 2 costs $25/hour and is available a maximum of 50 hours. The company would also like to have technical resource to work for less than one third of the hours on the project.
If this restriction had not been placed on Tech 2, the total cost of the project could have been reduced as Tech 2 could have taken on more hours under its constraint. Conclusion The simplex method is used to solve problems in linear programming. This was a big undertaking for Winter Technologies and should not be taken lightly. Every linear program can be converted into standard form where the constraints are equalities and the objective is maximized and nonnegative are the variables. All elements described were carefully considered before the project is undertaken.
A poorly lactated linear program can mean disaster for the company and can take years to erase. With this consideration in mind Team A use the simplex method that allows them to improve the solution at each step. The simplex method will start from a random vertex value of the objective function and repeatedly find another vertex value that improves the one you have before. Once the team standardized the model, they begin to implement the simplex method. To begin the team uses the simplex incoming variables, choosing the variable that slips out, updating the board, and return result.