BU275 Lecture Notes - Lecture 7: Slack Variable, Operations Research, List Of Extreme Points Of The United States
Document Summary
Linear programming: model that consists of linear relationships representing a firm"s decisions, given an objective and resource constraints. Linear functional relationships in mathematical models are linear. Program solution technique consists of predetermined mathematical steps. 3 steps in applying linear programming technique: Program must be identified as being solvable by linear programming. Unstructured program must be formulated as a mathematical model. Model must be solved by using established mathematical techniques. Model components include decision variables, objective function, and model constraints (consists of decision variables and parameters) Decision variables: mathematical symbols that represent levels of activity. Objective function: linear relationship that reflects the objective of an operation in terms of the decision variables consists of either maximizing or minimizing some value. Model constraints: a linear relationship that represents a restriction on decision-making. Parameters: numerical values that are included in the objective functions and constraints. Nonnegativity constraints: restrict the decision variables to zero or positive values.
