LP has turned to be a highly useful tool of analysis in development planning. But its efficiency is restricted due to;
It is not easy to define a specific objectives function.
Even the objectives function is defined; it may not be easy to find out various social, institutional, financial and other constraints which may restrict in pursing the given objectives.
Given a specific objective and set of constraints, it is possible that constraints may not be directly expansible as linear inequalities.It is difficult to estimates various constant coefficient that enter into a LP problem.
LP is based upon relative relations between input and output. This means that input and output are additive, multiplicative and divisible. But the relation between input and output are not always linear. Most of relations are non-linear.Perfect competition is not found practically.LP is based upon CRS but in real life there is either IRS or DRS.
It is highly mathematical a complicated techniques. Particularly simplex method involves a large number of mathematical calculations.
Most of LP models are based upon trial and error solutions and it is difficult to find out really optimal solutions to various economic problems.
So all these limitation are based upon the economic problems.
It is not easy to define a specific objectives function.
Even the objectives function is defined; it may not be easy to find out various social, institutional, financial and other constraints which may restrict in pursing the given objectives.
Given a specific objective and set of constraints, it is possible that constraints may not be directly expansible as linear inequalities.It is difficult to estimates various constant coefficient that enter into a LP problem.
LP is based upon relative relations between input and output. This means that input and output are additive, multiplicative and divisible. But the relation between input and output are not always linear. Most of relations are non-linear.Perfect competition is not found practically.LP is based upon CRS but in real life there is either IRS or DRS.
It is highly mathematical a complicated techniques. Particularly simplex method involves a large number of mathematical calculations.
Most of LP models are based upon trial and error solutions and it is difficult to find out really optimal solutions to various economic problems.
So all these limitation are based upon the economic problems.
