Linear Programming: Objectives, Components, and Formulation, Quizzes of Introduction to Business Management

Download Linear Programming: Objectives, Components, and Formulation and more Quizzes Introduction to Business Management in PDF only on Docsity! TERM 1 Business Objectives DEFINITION 1 Max profitMin cost TERM 2 Model Components DEFINITION 2 Decision VariableObjective FunctionConstraintsParameters TERM 3 Model Formulation Steps DEFINITION 3 Clearly define decision variables construct the objective function formulate the contraints TERM 4 non-General Linear Programming Models DEFINITION 4 1. Multiple optimal solutions2. Infeasible solutions3. Unbounded solutions TERM 5 Properties of Linear Programming Models DEFINITION 5 Proportionality Additivity Divisibility Certainty TERM 6 Proportionality DEFINITION 6 Slope of objective function and constraint equations is CONSTANT TERM 7 Additivity DEFINITION 7 Terms in the objective function and constraint equations must be additive I can add up the profit of one product with the profit of another TERM 8 Divisibility DEFINITION 8 Decision variables can take on any fractional value and are therefore continuous as opposed to integer in nature TERM 9 Linear Programming Minimization Problem DEFINITION 9 Fertilizer: super gro crop quick Decision Variables:x1 = # units of super gox2=# units crop quickObjective function:MIN Z = $6(x1) + $3(x2)Constraints :Nitrogen: 2(x1) + 4(x2) >= 16lbsPhosphate: 4(x1) + 3(x2) >= 24lbs* need non-negativity contraints*x1 , x2 >= 0(X1) I ( X2) (Nitrogen line = 8,4)0 I 4 8 I 0 (X1) I ( X2 ) ( phosphate line= 6,8)0 I 86 I 0(x2)I \\\\\\\\\\\\\\\\\\ I \\\\\\\\\\\\\\\\I \\\\\\\\\\\\\\\\\\\I \\\\\\\\\\\\\\\\\\\ I \\\\\\\\\\\\\\\\\\\\I \\\\\\\\\\\\\\\\\\\\\\I \\\\\\\\\\\\\\\\\\\\\ I___I____I____I____I____I___ (x1) 2 4 6 8 10The feasible region is NOT in between lines... it is OUTSIDE of themThe intersection = 4.8 , 1.6** HOW DID WE GET THIS???**we use thecorner points / extreme points ????for max problem = usually polygonfor min problem = usually outside of lines into infeasible reason TERM 10 Linear Programming Minimization Problem cont'd DEFINITION 10 COST TABLEx1 x2 cost0 8 $6(0) + $3(8) = $24 CHEAPEST CHOICE8 0 $6(8) + $3(0) = $ 484.8 1.6 $6(4.8) + $3(1.6) = $33.60