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.