Fundamentals of Decision Support -linear programming (LP), integer Assignment

Fundamentals of Decision Support -linear programming (LP), integer linear programming (ILP), or transportation problem and problem - Assignment Example on, the manager is seeking an option that has the least amount of costs, as he banks on this cost efficiency of the option selected in maximizing the returns on investment. Each of the three shirts produced by the company requires a given set of material n specified quantities or amounts. For instance, an athletic shirt requires one yard of fabric comprising of sixty percent cotton, while the rest is rayon. The manger also has to consider the available number of contracts per shirt within a given period, say weekly, and then compare this with the market price of the finished product. As such, the manager should come up with the right quantities of each shirt that would bring the company the most profits without increasing its costs of production (Lussier 2010, p.382). The criteria for the manger to use in making this decision depend on the cost of raw materials, the available resources within the reach of the company, as well as, the demand and price of the finished product. Rayon goes at  £7 and only 3000 yards of it is available to the company on a weekly basis. On the other hand, cotton goes for  £5 and the company can only lay hands on 4000 yards of the material. The available market demand of each finished product, together with the number of possible contracts on a weekly basis for each product, assists the manager in drawing up the right objective to pursue in making decisions. This is because there is a budget limit that the manger has to adhere to while making such decisions. As such, a manager can only make a right decision if it is within the budgetary provisions of the company, as well as, assure the company of maximum proceeds at the closure of business (Pinheiro-Bohl 2007, p.75). The appropriate model to undertake in making such an important decision is the resource allocation model. This model enables the manager to make a decision on the right amount of resources to allocate to a given line of product or process of production. For instance, in