An Analytical Study on the Application of Linear Programming Models for Employment Generation in Small-Scale Industries in India
DOI:
https://doi.org/10.31305/rrijm2026.v06.n01.012Keywords:
Linear Programming, Small-Scale Industries, Employment Generation, Operations Research, Optimisation, MSME, Product-Mix, Resource Allocation, IndiaAbstract
Small-scale industries occupy a strategic position in the Indian economy on account of their considerable contribution to employment generation, industrial output and export earnings, particularly in a labour-abundant and capital-scarce economy such as India. The optimal utilisation of limited resources such as capital, raw material, machine hours and labour is a persistent challenge before small entrepreneurs, and the manner in which these resources are allocated among competing products or activities has a direct bearing on the quantum of employment that can be generated. Linear Programming (LP), a well-established quantitative technique of Operations Research, offers a structured mathematical framework through which an optimal product-mix can be arrived at so as to maximise employment generation subject to the resource constraints actually faced by small units. This paper undertakes an analytical study of the applicability of LP models to the problem of employment generation in small-scale industries in India. Using a formulated LP model based on primary data collected from selected small-scale units and secondary data drawn from government publications, the study illustrates how the graphical and simplex methods of Linear Programming can be applied to determine an employment-maximising product-mix, and how sensitivity analysis can inform resource-allocation decisions. The findings indicate that Linear Programming is a practical and readily adoptable decision-support tool for both small entrepreneurs and policy planners engaged in employment planning.
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