Mgt 3120 Exam 1
Optimal Solution
Best feasible solution. (relative to OF)
Reduced Cost
Difference between profit contribution (unit profit) and the resource worth.
True/False: A change in an OFC represents a change in the amount of available resources
False
Non-binding
LHS is NOT equal. Not all resources used.
Linear Program Models (LP models)
Must have a decision to be made DV's can take on any values Constraints describe the restriction on the feasible values of the DV's
OFC Change
OF line with change represents change in a unit profit
True/False: A change in RHS of a binding constraint outside of the allowable range will change the optimal solution
True
True/False: A change in a LHS coefficient of a binding constraint within the allowable range will change the feasible region.
True
True/False: A change in an OFC outside the range will not change the feasible region
True
True/False: An example of a linear constraint is 3C+7T<=209
True
product-mix problem
type of linear programming where objective is to find most profitable mix or production levels for products under consideration
100% Rule
used when there are 2 or more changes that occur. If the number dues not exceed 100 (1), then the original optimal solution will still be optimal. (within range)
Binding Constraint
when all resources are being used (LHS=RHS)
Examples of Linear Constraints
x+y>= 100 3x+y>=100
Feasible region
Where all points satisfy the constraints
shadow price
change in the OF value, for a 1 unit increase in the RHS.
RHS Change
changes constraints change available resources.
parameters
constant coefficient in functional constraints each parameter represents a quantity that is of importance for analysis of the problem.
non negativity constraint
constraint that expresses the restrictions that a particular decision variable must be non negative. (greater than or = to 0.)
functional constraints
constraints with a function of the decision variables on the left hand side. All constraints in a linear programming model are nonneg. constraints are known as functional constr.
reduced cost
difference between the profit contribution (unit profit) and the resource worth.
Constraints
express restrictions on the values that can be assigned to the DV's. What restrictions must we work on?
Objective Function (OF)
gives the measure of performance in terms of the DVs. What are we solving this problem?
Non-Basic Variable
one that is NOT produced.
Basic Variable
one that is produced anything where the final value is not equal to 0.
Non Linear Constraints
relationships in which variables are squared, cubed, taken to powers other than one, or multiplied or divided by each other. x+y^2=100 xy>=100 x>= 100
Decision Variables (DV's)
represent the decisions that need to be made. What do we need to know?
Feasible Solution
solution that satisfies ALL constraints.
Infeasible Solution
solution that violates atleast one constraint.
