Which of the following is a business situation in which linear programming (LP) models can be used appropriately?
A) A manager of a production line wants to minimize the total production and inventory cost while meeting the sales demands for products.
B) A financial analyst wants to maximize the return on an investment with a limited budget for stocks and bonds.
C) A marketing manager wants to maximize the customer lifetime value with a limited advertising budget.
D) A logistics manager wants to minimize the total transportation cost for products and raw materials while meeting customer demands for those products.
E) All of the above business situations can be modeled with LP models.

Question

Quizplus · Accepted Answer

Linear programming models are versatile tools that can be applied to various business scenarios to optimize outcomes under constraints. Each of the situations described (A through D) involves optimizing a specific objective (minimizing costs or maximizing returns/values) subject to certain constraints (budget limits, demand fulfillment), which are typical applications of linear programming models.

Which of the Following Is a Business Situation in Which