Solution:LP stands for ‘Linear Programming’
A linear equation or a problem subjected to equality or inequality constraints and is subjected to be maximized or minimized is known as linear programming.
We formulate the LP problem as:
* We understand what the problem is trying to say and convert the same into equation
* For the conversion to equation, we need to find and define the decision variables which are the quantities required to solve the problem.
* Then, the set of constraints i.e. limitations to the variables or the relationship amongst them is identified.
* We then express the objective function in the form of a linear equation by the analysis called sensitivity analysis.
According to this linear equation obtained, we finally represent it graphically.
An example of a LPP is :Therefore, the very first step in formulating an LP problem is understanding the managerial problem being faced.
Hence, Option (4) is the correct Ans:.