MGT 325 Chapter 19 Linear Programming-Optimization
graphical method simplex method
two types of optimal solution methods
hexagon
use ______________ for objective function
rectangle
use ________________ for decision variables
upside down triangle
use _________________ to represent numbers given in the questions
ellipsoid
use __________________ for intermediary calculations that use parameters and decision variables
goal seek
useful for finding break even point and the numeric value that leads to a desired output level
scenario manager
useful for running multiple scenarios
objective function
value of a solution that measures relative "quality" of different solutions
decision variables
values that must be chosen in order to define a solution to the problem
optimal solution
a feasible solution that achieves the best possible objective function value within the feasible region
constrained optimization problem
a mathematical model that maximizes or minimizes some quantity while satisfying a set of constraints
feasible solution
a set of decision variable values that satisfy all of the constraints
influence chart
a simple diagram to show the relationship between inputs and outputs in a spreadsheet model
parameters of the problem
all constant numbers in the formulation
data table
allows one to systematically vary one of two input quantities, and keep track of a resulting output value
objective function
also called a "benchmark"
ignores
an influence chart _______ all available numerial data
binding constraint
changing the RHS of a __________ would change the objective function
unbinding constraint
changing the RHS of an __________________ would not change the objective function
parameters
constant numbers that are clearly stated in the problem statement
decision variables
consume or supply some resource revenue
right hand side (RHS)
defines the amount of resource available or needed to satisfy the constraint
to define problem structure
goal of an influence chart
influence chart
identifies the main elements of a model and helps to define the assumptions of the model
one, optimal solution
in an LP, at least______ of the extreme points is an _____________
constraints
inequalities or equalities that are associated with some resource and determine whether a specific solution is feasible
decision variables
influence the objective function in some way
1. paramters 2. decision variables 3. objective function 4. constraints
major elements of an optimization problem:
objective value
no other feasible solution has a better ____________.
one way data table
shows how output changes as an input is varied
extreme points
the "corners" of the feasible region
shadow price
the instantaneous change, per unit of the constraint, in the objective value of the optimal soluction of an optimization problem obtained by relaxign the constraint
shadow price
the marginal utility of relaxing the constraint, or equivalently, the margincal cost of strengthening the constraint
feasible region
the set of all feasible solutions
multiple
there may be _______ optimal solutions
