Solution of a Linear Programming Problem by the Simplex Method

Abstract

The field of economics is inconceivable without the active application of mathematical methods. The subject is so
complex and multifaceted that its analysis and management are unattainable without mathematics. Moreover, in light of the
ongoing computerization of economics – through which it becomes possible to model and describe highly intricate economic
structures – the use of applied mathematics is not merely optional but indispensable. A profound knowledge of mathematics is
therefore a necessary prerequisite. This paper considers an economic problem formulated and solved by means of linear
programming, specifically through the simplex method. The solution of any linear programming problem – namely, the
determination of an optimal plan – can be achieved via the simplex algorithm. Prior to applying this method, it is required that
the given problem, if initially presented in an alternative form, be transformed into its canonical form.