Chapter 2_2017S (2).ppt - Chapter 2 Introduction to...

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Introduction to Optimization and Linear ProgrammingChapter 21
IntroductionWe all face decision about how to use limited resources such as:Oil in the earthLand for dumpsTimeMoneyWorkers2
Mathematical Programming...MP is a field of management science that finds the optimal, or most efficient, way of using limitedresources to achieve the objectives of an individual of a business.a.k.a.Optimization3
Applications of OptimizationDetermining Product MixDetermine how many of each product to produce in order to maximize profits, or to satisfy demand at minimum cost4
5
6Routing and Logistics
7Financial Planning
Characteristics of Optimization ProblemsDecisionsDecision variablesConstraintsInequality constraint, equality constraintObjectivesObjective function8
General Form of an Optimization ProblemMAX (or MIN): f0(X1, X2, …, Xn)Subject to:f1(X1, X2, …, Xn)<=b1:fk(X1, X2, …, Xn)>=bk:fm(X1, X2, …, Xn)=bmNote: If all the functions in an optimization are linear, the problem is a Linear Programming (LP) problem9

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