In manufacturing and business theory, there is what is called a zero-sum game. In zero-sum games, there are two opposite ends of a given situation. In such a game, the outcome of one transaction does not necessarily mean the same to the other party. This concept is very similar to the law of supply and demand in that if one person purchases more, then the product will need to be supplied to meet the demand, meaning prices will need to fall or rise. The opposite of this is when one person sells less, the product has to be supplied at a higher price so as to make a profit. Zero-sum games are very important in all economic processes.
In a zero-sum game, if we analyze the problem of the producer the situation he or she faces is often a dilemma. Because the goal of production is met at a loss, the situation must be either increased or decreased. There are many applications for this type of analysis in programming, manufacturing, management, and finance. Often we find that once these problems are identified, there are many solutions to be considered, and this is where the process of linear programming comes into play.
Linear programming can be applied to many areas, such as inventory, production, and costs. It is used in the manufacturing industry, where it is used to minimize cycle times, improve product quality, streamline operations, and reduce costs. When the goal of production is met at a loss, the cost of production needs to be reduced or eliminated. Once this is achieved, then the goal of sales can also be met at a lower cost, which in turn will increase the profits of the business. This is just one example of why this concept is used in business, but there are many others to illustrate its relevance in many areas.