BUS 336 Lecture Notes - Lecture 11: Linear Programming, Operations Research, Carpentry

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 336
• Professor: Andrew Flostrand

Document Summary

Lecture 11 chapter 3 linear programming models: many management decisions involve making most effective use of limited resources. Linear equations: general form of all linear equations ax1 + (cid:271)(cid:454)(cid:1006) + (cid:272)(cid:454)(cid:1007) + (cid:894)=,,(cid:1095),(cid:1096)(cid:895) value. Whe(cid:396)e a, (cid:271), (cid:272), a(cid:396)e (cid:272)o(cid:374)sta(cid:374)ts a(cid:374)d (cid:454)(cid:1005), (cid:454)(cid:1006), (cid:454)(cid:1007), a(cid:396)e fi(cid:396)st-order variables: any mixed of non first-order variables make their equations non linear a(cid:454)(cid:1005)(cid:1006) + (cid:271) (cid:454)(cid:1006) + (cid:272)(cid:454)(cid:1007)(cid:454)(cid:1008) + l(cid:374)(cid:894)(cid:454)(cid:1008)(cid:895) = value. 3 main steps to formulating any lp model: define the decision variables. These are the relevant numbers that affect the objective and will be decided by you. This is the equation that tells you how much you can make/save if you choose any combination of decision variables. It will always include a linear combination of all decision variables: explicitly list all constraints for the decision variables mathematically. The following example is extremely simplified and would not represent many real-world situations, but is useful for illustrating the concepts of lp.