Managerial Decision Modeling Chapter 1, 2, 3, 4, 5, and 6
Product Mix Problem is
A common LP problem that involves a decision about which products a firm should produce, given that it faces limited sources.
Infeasibility is
A condition that arises when there is no solution to an LP problem that satisfies all the constraints.
Unbounded Solution is
A condition that exists when the objective value can be made infinitely large (in a maximization problem) or small (in a minimization problem) without violating any of the problems constraints.
Redundant Constraints is
A constraint that does not affect the feasible solution region.
Destination is
A demand location in a transportation model. Also called a sink.
Goal Seek is
A feature in excel that allows users to specify a goal or target for a specific cell and automatically manipulate another cell to achieve that target.
Inequality is
A mathematical expression that contains a greater-than or equal-to relation (>=) or a less-than or equal-to relation (<=) between the left-hand side and the right-hand side of the expression.
Integer Programming is
A mathematical programming model in which some or all decision variables are restricted only to integer values.
Objective Function is
A mathematical statement of the goal of an organization, stated as an intent to maximize or minimize some important quantity, such as profit or cost.
Linear Programming (LP) is
A mathematical technique used to help management decide how to make the most effective use of an organization's resources.
Problem Parameter is
A measurable quantity that is inherent in a problem. It typically has a fixed and known value. (a constant)
Variable is
A measurable quantity that may vary or that is subject to changes.
Minimal-Spanning Tree Model is
A model that determines the path through the network that connects all the nodes while minimizing total distance.
Shortest Path Model is
A model that determines the shortest path or route through a network.
Deterministic Model is
A model which assumes that all the relevant input data and parameters are known with certainty.
Probabilistic Model is
A model which assumes that some input data are not known with certainty.
Corner (Or Extreme) Point is
A point that lies on one of the corners of a feasible region. This means that it falls at the intersection of two constraint lines.
Maximal-Flow Model is
A problem that finds the maximum flow of any quantity or substance trough a network.
Sensitivity Analysis is
A process that involves determining how sensitive a solution is to changes in the formulation of a problem.
Iterative Process is
A process(alogarithm) that repeats the same steps over and over.
Answer Report is
A report created by Solver when it solves an LP model. This report represents the optimal solution in a detailed manner.
Answer Report is
A report created by Solver when it solves an LP model. this report presents the optimal solution in a detailed manner.
Model is
A representation (usually mathematical) of a practical problem scenario or environment.
Constraint is
A restriction (stated in the form of an inequality or an equation) that inhibits (or binds) the value that can be achieved by the objective function.
Deterministic Modeling is
A scientific approach that uses quantitative (mathematical) techniques as a tool in managerial decision making. Also known as quantitative analysis, management science, and operations research.
Nonnegative Constraints are
A set of constraints that requires each decision variable to be nonnegative; that is, each decision variable must be greater than or equal to 0.
Alternate Optimal Solution is
A situation in which more than one optimal solution is possible. It arises when the angle or slope of the objective function is the same as the slope of the constraint.
Transportation Model is
A specific network model case that involves scheduling shipments from origins to destinations so that total shipping cost are minimized.
Assignment Model is
A specific type of network model that involves determining the most efficient assignment of people to projects, salespeople, to territories, contracts to bidders, jobs to machines, and so on.
Level (or Iso) Line is
A straight line that represents all nonnegative combinations of the decision variables for a particular profit (or cost) level.
Origin is
A supply location or source in a transportation model. Also called a source.
Solver is
An Excel add-in that allows LP problems to be setup and solved in Excel.
SUMPRODUCT
An Excel function that allows users to easily model formulas for the objective function and constraints while setting up a linear programming model in Excel.
Branch-and-Bound Method is
An algorithm used by Solver and other software to solve IP problems. It divides the set of feasible solutions into sub regions that are examined systematically.
Transshipment Model is
An extension of the transportation model in which some points have both flows in and out.
Decision Analyst is
An individual who is responsible for developing a decision model.
Simplex Method is
An iterative procedure for solving LP problems.
What Make Unconstrained Variables Non-Negative?
An option available in Solver that automatically enforces the nonnegative constraint.
Simplex LP is
An option available in Solver that forces it to solve the model as a linear program by using the simplex procedure.
Feasible solution is
Any point that lies in the feasible region. Basically, it is any point that satisfies all if the problem's constraints.
Infeasible Solution is
Any point that lies outside the feasible region. It violates one or more of the stated constraints.
Changing Variable Cells are
Cells that represent the decision variable in solver.
Input Data is
Data that are used in a model in arriving at the final solution.
Simultaneous Equation Method is
The algebraic means of solving for the intersection point of two or more linear constraint equations.
Allowable Decrease for an OFC is
The amount by which the OFC of a decision variable can decrease for the current optimal solution to remain optimal.
Right-hand-side (RHS) Value of Constraint also known as RHS Values are
The amount of resource available (for a <= constraint) or the minimum requirement of some criterion (for a >= constraint) . Typically expressed as a constant for sensitivity analysis.
Feasible Region is
The area that satisfies all of a problems resource restrictions - that is, the region where all constraints overlap. all possible solutions to the problem lie in the feasible region.
Constraints LHS are
The cell that contains the formula for the left-hand side of the constraint in Solver. There is one such cell for each constraint in a problem.
Objective Cell is
The cell that contains the formula for the objective function solver.
Constraints RHS are
The cell that contains the value (or formula) for the right-hand side of a constraint in a Solver. There is one such cell for each constraint in a problem.
Objective Function Coefficient (OFC) is
The coefficient for a decision variable in the objective function. Typically, this refers to unit profit or unit cost.
Constraint Coefficient are
The coefficients for the decision variables in a model's constraints.
Surplus is
The difference between the left-hand side and the right-hand side of a >= constraint. Surplus typically represent the level of over satisfaction of a requirement.
Reduced Cost is
The difference between the marginal contribution to the objective function value from the inclusion of a decision variable and the marginal worth of the resources it uses. In the case of a decision variable that has an optimal value of zero, it is also the minimum amount by which the OFC of that variable should change before it would have a nonzero optimal value.
Slack is
The difference between the right-hand side and the left-hand side of a <= constraint. Slack typically represent the unused resources.
Mathematical programming involves
The general category of mathematical modeling and solution techniques used to allocate resources while optimizing a measurable goal: LP is one type of programming model.
Shadow Price is
The magnitude of the change in the objective function value for a one-unit increase in the RHS of the constraint.
Allowable increase for an OFC is
The maximum amount by which the OFC of a decision variable can increase for the current optimal solution to remain optimal.
Allowable Decrease for the RHS value is
The maximum amount by which the RHS value of a constraint can decrease for the shadow price to be valid.
Allowable Increase for a RHS Value is
The maximum amount by which the RHS value of a constraint can increase for the shadow price to be valid.
Corner Point Method is
The method of finding the optimal solution to an LP problem that involves testing the profit or cost level at each corner point of the feasible region. The theory of LP states that the optimal solution must lie at one of the corner points.
Break-Even Point also known as BEP is
The number of units sold that will result in a total revenue equaling total cost. (profit is $0)
Sensitivity Analysis (4.1) also known as Postoptimality Analysis is
The procedure which allows us to answer questions such as those posed above, using the current optimal solution itself, without having to resolve the LP model each time.(the analysis involves examining how sensitive the optimal solution is to changes in profits, resources, or other input parameters).
Formulation is
The process by which is aspect of a problem scenario is translated and expressed in terms of a mathematical model.
Break-Even Point in Dollars (BEP$) is
The sum of fixed and total variable cost if the number of units sold equals the break-even point.
Decision Variables are
The unknown quantities in a problem for which optimal solution values are to be found.
