Module2 HandoutsP

# Module2 HandoutsP - Part1 Optimalsolution, consumption

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8/13/2010 1 Introduction to Linear Programming Part 1 Types of linear programming models How to formulate an LP model Properties of LP models Optimal solution, optimal value and resource consumption Typical Applications of LP Models Determine the production schedule or inventory policy that satisfies future demand and minimizes cost Selection of an investment portfolio from a variety of investments that will provide a given rate of return and minimize risk Marketing manager must allocate advertising media among alternatives while staying with budget Design diet for military that provides needed nutrients, variety and taste while minimizing cost Determining where to construct a new factory that will satisfy demand and minimize shipping costs to distributions centers What is Problem Formulation Translation of the verbal description of the problem into a set of mathematical expressions that can be solved. •Will help to reorganize problem into a compact tabular form •A fully-formulated LPM is suitable for entering into a suitable software program, which will solve for the decision variables and give you supplementary output that is useful for interpreting the results

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8/13/2010 2 Steps in Problem Formulation Understand the problem thoroughly Describe the objective Describe each constraint Define the decision variables (controllable inputs) Write a mathematical expression for the objective in terms of the decision variables Write mathematical expressions for all of the constraints in terms of the decision variables and resources Identify Dimensions and Units Associated with Each Term of a Model Dimensions describe the fundamental meaning of a term such as money, length, time, area, volume.
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## This note was uploaded on 03/06/2012 for the course BIOL 2107 taught by Professor J.louten during the Spring '10 term at SPSU.

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Module2 HandoutsP - Part1 Optimalsolution, consumption

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