COMMERCE 3QA3 Lecture Notes - Lecture 8: Feasible Region, Carpentry, Sensitivity Analysis

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 3QA3
• Professor: John Miltenburg

Document Summary

Business decision models linear programming (lp) problems/models. Many business decision problems involve making the best use of limited resources (such as labour, money, materials, time, and space). A mathematical model for these problems often has one objective function (such as maximize total profit or total number of customers or total return, or minimize cost or financial risk) and constraints on how the resources are used. When the one objective function and each of the many constraints are all linear then the mathematical model is called a linear programming (lp) model or problem. In this course a model is the same as a problem and vice versa. 2, 3, 5 in the textbook) we will study the following standard lp models or problems. Expanded vehicle loading problem two trucks. Formulate the lp model (state the decision variables, objective function, and constraints) Solve the lp model (use the graphical method or the simplex method in solver in excel)