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Lecture 1

BU275 Lecture 1: Linear Progression

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Monday January 8 2018 Lecture 1 Linear Programming Make simultaneous decisions to reach an optimal output by considering constraining factors (ex. Limited resources) o Example: Optimization problems Can only have addition or subtraction signs between decision variables in the objective function and the constraints in linear programming (LP) o Ex. 4T + 2C < 10 Objective is to maximize or minimize something Non-negativity constraints o Cant have negative variables so remember to state restrictions Ex. T > or = 0, C > or = 0 Linear Programming: Graphical Solution Plot all objective functions Check corner points Optimal mix = last point you touched in feasible region The Profit & Gambit Co. An advertising campaign will foc
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