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Unformatted text preview: BUS 660 lecture aid Optimization Modeling Applications Introduction This module is an extension of the Module 6 introduction to optimization modeling. As discussed last week, linear optimization techniques are used to solve a wide array of optimization problems. Understanding the theory and concepts behind linear programming requires relatively complex mathematical reasoning. Yet, as found in Module 6, the Solver capability of Excel can be used to set up and solve linear optimization problems more easily as compared with solving the problems graphically or algebraically. What is a Linear Optimization Model? As discussed last week and as found in the Module 6 homework problems, a linear optimization model consists of: 1) Variables- whose values are to be determined. 2) Constraints- that those variables are under. 3) An objective function- that is a linear combination of the variables and represents a measure (such as profit, cost, resources, etc.) that is being optimized. Note that the word optimize is to be interpreted as profit, cost, resources, etc....
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- Spring '10