The essentials and importance of Linear Programming models
a) In your own words briefly discuss the essentials and importance of Linear Programming models and how they are used in the business world. What are the pros and cons of linear programming. Give an example of their use in functional business areas like Marketing, Production, Finance, Human Resources.
b) Please tell me your understanding of what is sensitivity analysis in linear programming problems? What is the definition of shadow price? What is the managerial use of sensitivity analysis and shadow prices? Find an example (from any source) and clearly explain sensitivity analysis and shadow prices on it by using managerial approach. Your example must be meaningful for explaining sensitivity analysis.