If cars sell for $500 profit and trucks sell for $300 profit, which of the following represents the objective function?

Linear programming (LP) is a mathematical technique that can help operations managers determine how to best allocate scarce resources. LP models consist of an objective function and the constraints on that function. The objective function is also known as the cost function, and it must be minimized or maximized subject to a number of constraints.  The graphical method is a technique for solving linear programming problems by generating a graph. It's the best method for solving linear programming problems with two variables, and it requires less effort than the simplex method.  Here are some... Show more

Linear programming (LP) is a mathematical technique that can help operations managers determine how to best allocate scarce resources. LP models consist of an objective function and the constraints on that function. The objective function is also known as the cost function, and it must be minimized or maximized subject to a number of constraints. 

The graphical method is a technique for solving linear programming problems by generating a graph. It's the best method for solving linear programming problems with two variables, and it requires less effort than the simplex method. 

Here are some other aspects of linear programming:
Sensitivity analysis: A characteristic of linear programming.
Data envelopment analysis (DEA): A linear programming-based methodology for evaluating the relative efficiency of each member of a set of organizational units.
"What-if" analysis: LP provides an opportunity to introduce the idea of "what-if" analysis. 

Related Test: Operations Management 101 Practice Test: Decision Modeling

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