Abstract
The Effective Gradient Method assigns to the zero-one variables measures of profitability that change the values of the variables from zero to one in large scale zero-one programming problems. This feature makes the method applicable not only to those problems associated with obtaining the optimal package of variables with the values one but also to many kinds of binary choice problems to which it is difficult to apply the usual zero-one programming methods. This paper presents the applications of the Effective Gradient Method to problems which cannot be solved by the usual zero-one programming methods and indicates how useful the Effective Gradient Method can be when applied to a variety of managerial decision making problems.
