If a business owner has limited resources with her, she should try to make maximum use of them. The resources can be space, money, time, labor, etc. If she has only 1000 square feet of area for her office or only 2 people to complete a tedious work in 3 days, she should calculate the best way to enhance the resources. In this article, we will discuss about maximizing resources through linear programming and how entrepreneurs can make better decisions that lead to resource optimization.
- Suppose a business owner manufactures some products by using same components. However, given the fact that different quantity of raw materials is used in the products, some are more costly to produce. Therefore, the decision making process should be such that she manufactures in such a way that the company does not suffer loss and minimizes the total cost.
- If the business owner is not aware of the techniques to optimize her resources, she should use linear programming. Linear programming is a technique used by mathematicians. It determines the most useful technique to utilize available resources. Managers utilize the procedure to make maximum use of resources, such as materials and machinery.
- Optimization provides the best solutions among many solutions. The idea of the best solution depends on the issue faced by the business owner. The best solution might mean using minimum resources or even the solution that renders maximum profit.