Application of linear programming in employee allocation: A case study in emerging economy

Abstract

Linear programming is widely used in numerous industries for allocating scarce resources to fulfill customers’ demands. In this study, we use this mathematical technique in an automobile industry located in an emerging economy (Bangladesh). Given that, the emerging economy faces problems in implementing sophisticated technologies. Therefore, the key objective of this study is to show how linear programming applications are possible without sophisticated technologies, just by using a software, named GAM. Moreover, this study shows that the application of linear programming in the automobile industry in the emerging economy is also cost-effective and efficient in employee management. Based on the outcome of this study, we find that the company can save $26,174 in employee costs in eight weeks by implementing linear programming in the allocation of its employees. This study will contribute in many ways such as realizing policymakers, employees, and management how linear programming is beneficial for them in providing small efforts. Furthermore, this will add value to the existing literature that linear programming is also applicable in a specific industry in the emerging economy.