Theoretical and Practical Study of the Application of the Simplex Method in Quantitative Management

Abstract

The increasingly competitive business environment demands that organizations make decisions accurately, effectively, and efficiently, taking into account the limitations of available resources. Quantitative management is an approach that can be used to assist managers in solving various decision-making problems through the use of mathematical models and quantitative analysis techniques. One technique widely used in quantitative management is the Simplex method, a procedure for obtaining optimal solutions to linear programming problems with more than two decision variables. This article aims to examine the theoretical and practical application of the Simplex method in assisting the process of optimizing resource use and managerial decision-making. The research method used is a qualitative descriptive approach through literature studies and illustrations of the application of the Simplex method to production problems. The results of the study indicate that the Simplex method can help organizations determine optimal product combinations by considering limitations in raw materials, labor, production capacity, and other resources. The application of this method can also provide information regarding optimal production quantities and the maximum profit value that can be obtained. Thus, the Simplex method can be a relevant analytical tool in supporting data-based decision-making and increasing the efficiency of organizational resource utilization.