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Business modelling

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For example, wen representing the relationship between the eating behavior of people and increase in their weight, tis technique will represent the average weight of the food eaten with the change in their weight over time. Tis will not give a complete and clear description of the exact data that there is in a given situation hence there may be a misrepresentation of the data (Huang 2013). Lnear regression is normally affected with variables that are on the extreme. Tese variables are known as outliers. Tey are normally high very low variable that are scarce.

Fr example a 120 year old making 20 million dollars or 16 year old making 200 thousand dollars are very few in a normal business setting. Terefore, tese outliers when represented in in a linear regression will alter the representation thus giving false conclusion (Yao and Li 2013). Lnear programming will normally represent its data in a linear manner. Tis will therefore limit its usage in transportation or supply chain type of organization (Evans 2010). Fr example, i a supply chain manner wants order two different types of materials for the manufacture of a given product, tey might find it cheaper to order the materials from two different companies, ech material from each company (Agbadudu 2006).

Tis kind of representation, i the linear programming technique, wll not be explicit as it is not linear. Te purchase of material in the first company might be lower than in the second company while it may also not be constant. Fr a logistic company investigating the effects of increasing their fleets and how this increases profit, uing linear programming may be misleading as the increase in fleet will not always be linearly related to increase in profit.

Te profit may increase slightly when the fleets are bought and then level of with time. Tis will be a curved kind of representation. Tis aspect of non-linearity will not be represented in linear programming hence the model will fail in these companies (Taylor 2013). Tis model of linear programming will represent outputs and inputs that are in fractional forms. Tis representation will not always be adequate the logistic transportation or supply chain businesses.

Atransportation company that wants to order for new fleets of trucks from a given truck manufacture cannot represent these fleets as fractions hence using this model will become a problem. Asupply chain manager who wants to hire...

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