Introduction to LFP
This is an introduction to the theory of linear-fractional programming. Here we define the common problem of LFP, give its main economic interpretation, formulate and prove the main lemmas and theorems of LFP and describe some important real-world applications where the use of LFP may prove to be quite useful.
Problems of LFP arise when there appears a necessity to optimize the efficiency of some activity: profit gained by company per unit of expenditure of labor, cost of production per unit of produced goods, nutritiousness of ration per unit of cost, etc. Nowadays because of a deficit of natural resources the use of specific criteria becomes more and more topical. So an application of LFP to solving real-world problems connected with optimizing efficiency could be as useful as in the case of LP.
KeywordsFeasible Solution Transportation Problem Unknown Variable Total Profit Fractional Programming
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