BUS 336 Lecture Notes - Lecture 8: Operations Research, Carpentry, Time 100

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 336
• Professor: Andrew Flostrand

Document Summary

Many management decisions involve making the most effective use of limited resources. Converts all parts of the problem into linear equations. Planning and decision making relative to resource allocation. Part of the broader field of mathematical programming (where programming refers to modeling and solving a decision problem mathematically) General form of all linear equations: (cid:1)(cid:2)(cid:3) + (cid:5)(cid:2)(cid:6) + Any mixed or non first order variables make their equations non linear (e. g. squares, square roots, ln, etc. ) Lp properties and assumptions: necessary general conditions for solving a problem with lp models. Divisibility any units can be sub divided (e. g. portion of a good, portion of an hr) Nonnegative variables # goods and # hrs can only be 0 or positive. Three main steps to formulating any lp model: Define the decision variables relevant numbers that affect the objective. Identify and mathematically state the objective function equation based on any combination of decision variables.