QMB 3301 Lecture Notes - Lecture 2: Goal Programming, Marginal Cost, Nonlinear Programming
Document Summary
Factors that are not under control of the manager or decision maker. Environmental factors that can affect both the objective function and the constraints. Can either be known exactly or be uncertain and subject to variation. When uncontrollable inputs to a model are known and cannot vary. Ex: corporate income tax are not under the influence of the manager and thus constitute an uncontrollable input. When any of the uncontrollable inputs are uncertain to the decision maker. Ex: a mathematical model that treats future demand with uncertainty. Inputs that are completely controlled or determined by the decision maker. Decision alternatives specified by the manager and thus are also referred to as the decision variables of the model. Once all controllable and uncontrollable inputs are specified, the objective function and constraints can be evaluated and the output of the model determined. Refer to the values of the uncontrollable inputs to the model.
