The Simplex Method And The Accuracy Of Decisions

The simplex method and the accuracy of decisions

Through this essay, information about the simplex method and its importance in decision making mainly in the sales area will be announced in order to put into practice in a company what has been learned through this method, understand the importance that it can recover inThe development of a company, and above all to capture the importance of bringing it to real practice by understanding the same topic in a real environment in which precision and accuracy are needed when implementing measures that may influence the use of resourcesOf a company.

To be able to leave from a logical point;As a student of the administration career I understand the simplex method as a mathematical model that works based on an objective function whose objective is to present a logical path to maximize profits or minimize costs based mainly on the aforementioned objective function, this defined in a few word,being its main difference with the graphic method, the amount of variables that can be used in the simplex method.

Simplex method

To fully understand this topic, it is necessary to define that it is the simplex method and define some of its characteristics according to some sources consulted;

“The simplex method is an analytical method of solution of linear programming problems, it is an iterative method that allows the solution to be improving in each step. The mathematical reason for this improvement is that the method consists in walking the vertex of a polyhedron to a neighboring vertex so that it increases or decreases (depending on the context of the objective function, is to maximize or minimize), given that the number of verticesthat presents a polyhedron solution is finite will always find a solution.

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This popular method was created in the year of 1947 by the American George Bernard and the Rudo Leonid Vitalievich Kantorovich, with the aim of creating an algorithm capable of solving problems with m of restrictions and n variables.

Having this defined this we can begin to understand the importance of the simplex method in the company now giving it the approach we are looking for that it is for the sales area is that as we said it is sought to maximize profits or reduce costs and this for sales is fundamental.

The aforementioned part of the scoop that the resources available to the entrance company seek to optimize in all possible conditions, a company that is known and that seeks to grow is a company that has well defined suppliers and this meansA control over the costs related to the production or service they offer, and it is from this is how methods such as simplex can be implemented.

For these reasons the importance of following a route drawn up by a mathematical model marks a precision and above all valuation of resources, in practical example suppose that a company has x resources and to manufacture its product requires and amount of raw material, andThe company seeks to maximize the utility, building the simplex method matrix can be defined as much product is required to manufacture and therefore sell to achieve the desired utility.

This is one of the many profits of the method, taking into account the sales department can define in real and products a goal to be achieved in a certain period of time and based on this working to meet this objective.

conclusion

As the simplex method could be studied, it is a mathematical model that marks a goal that will define the course and pace of work mainly of the sales department, the various situations that can occur in a company perhaps many are outside the control of the company such asAn epidemic as what is currently lived, however that does not mean that it should not be prepared in all aspects, to avoid a collapse n difficult moments and the safety and precision offered by mathematical prediction or maximization models is essential forthat companies can prevail and make a difference in the market in which.