The mathematical tool used to determine the optimum short-term product (or service) mix is:
A) Linear regression (i.e., ordinary least-squares) analysis.
B) Linear programming.
C) Linear ratio analysis.
D) Pareto optimality analysis.
E) Nonlinear cost-benefit analysis.

Question

Quizplus · Accepted Answer

Linear programming is the mathematical tool used to determine the optimum short-term product (or service) mix. It involves maximizing profits subject to various constraints and is commonly used in operations research and management science. Linear regression is used to identify the relationship between variables, while linear ratio analysis is used to analyze financial statements. Pareto optimality analysis is a method to determine the most efficient distribution of resources, while nonlinear cost-benefit analysis involves analyzing the costs and benefits of a project or decision. Therefore, the best choice for determining the optimum short-term product mix is linear programming.

The Mathematical Tool Used to Determine the Optimum Short-Term Product