Chapter 1
Feasible solution
A decision alternative of solution that satisfies all constrains.
Infeasible solution
A decision alternative or solution that does not satisfy one or more constraints
Objective function
A mathematical expression that describes the problem's objective.
Deterministic model
A model in which all uncontrollable inputs are known and cannot vary.
Stochastic (probabilistic) model
A model in which at least one uncontrollable input is uncertain and subject to variation; stochastic models are also referred to as probabilistic models.
Iconic Model
A physical replica, or representation, of a real object.
Single-Criterion decision problem
A problem in which the objective is to find the best solution with respect to just one criterion.
Multi-criteria decision problem
A problem that involves more than one criterion; the obfective is to find the best solution, taking into account all the criteria
Model
A representation of a real object or situation.
Analog model
Although physical in form, an analog model does not have a physical appreance similar to the real object or situation it represents.
Decision Variable
Another term for controllable input.
Mathematical model
Mathematical symbols and expressions used to represent a real situation.
Constraints
Restrictions or limitations imposed on a preoblem
Decision
The alternative selected
Uncontrollable inputs
The environmental factors or inputs that cannot be controlled by the decision maker.
Fixed cost
The portion of the total cost that does not depend on the volume; this cost remains the same no matter how much is produced.
Variable cost
The portion of the total cost that is dependent on and varies with the volume.
Decision Making
The process of defining the problem , identifying the alternatives, determining the criteria, evaluating the alternatives, and choosing an alternative.
Problem Solving
The process of identifying a difference between the actual and the desired state of affairs and then taking action to resolve the difference
Marginal revenue
The rat of change of total revenue with respect to volume.
Marginal cost
The rate of change of the total cost with respects to volume.
Optimal solution
The specific decision-variable value or values that provide the best output for the model.
Breakeven Point
The volume at which total revenue equals total cost.
Controllable inputs
the inputs that are controlled or determined by the decision maker.