QA 305- Final Exam Guide - Comprehensive Notes for the exam ( 26 pages long!)
Document Summary
Linear programming (lp): a mathematical technique used to help management decide how to make the most effective use of an organization"s resources. A technique that helps in resource allocation decisions: mathematical programming: the general category of mathematical modeling and solution techniques used to allocate resources while optimizing a measurable goal; lp is on type of programming model. Objective function: a mathematical statement of the goal of an organization, stated as an intent to maximize or to minimize some important quantity such as profits or costs. Constraints: a restriction in the resources available to a firm (stated in the form of an inequality or an equation) Objective function and constraints are linear proportionality and divisibility. Use the decision variables to write mathematical expressions for the objective function and the constraints. Product mix problem: a common lp problem involving a decision as to which products a firm should produce given that it faces limited resources.
