Assumption of Break even model

There are number of assumptions underlying using the simple linear break-even model. Linear Programming and Goal Programming model are two important extensions of LP which relax one or more of these assumptions. In a multi-product resource allocation problem, there would be several economic or “hard” constraints that could be included. Hard constraints are various limitations that are imposed by the decision environment, similar to the resource and other constraints in LP, but cannot be violated. To start with, I believe the use of Integer is a hard constraint on its own. One constraint could be budget available to buy or work on the project.

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