Abstract:

Linear programming, with the simplicity of economic events description, reliability of information and present speed of information processing, can offer irreplaceable help to the decision making entities. Unfortunately, application of this form of programming, within large business systems, with several branches and hierarchy based structure, is more of the exception than the rule, today. Adjustment of the general formulation of linear optimization programs enables the significant expansion of the application possibilities of these programs and simplifies their application. Starting with this assumption, this paper sets out one of possible ways of their adjustment – redefinition, showing the practical application, first of all, on the example of a single production, then oil refining and on one complex, hierarchically organized system with several branches in the field of agriculture.    

Key words: optimization, operating capital, interests, fixed and variable costs, internal prices.

Attachments:

Optimization of large business systems production plans .pdf

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