33:136:386 Lecture Notes - Lecture 1: Hash Browns, Feasible Region, Stock Fund

• School: Rutgers University
• Department: Business Analytics and Information Technology
• Course: 33:136:386
• Professor: Markowitz

Document Summary

Potato problem: decide: maximizaion (away from origin) or minimizaion (closer to origin) , for potato problem, we need to maximize proits. List decisions: how many potatoes to buy from source 1 and source 2, create decision variables: s1 and s2, create a math expression for total proit, 5*s1 + 6*s2, create objecive funcion, maximize 5*s1 + 6*s2. Why can"t we buy 1billion bushels from source 2 and make billion proit: because of resource constraints (can"t use more capacity than we have) . 2*s1 + . 3*s2 <= 1. 8 (million the french fry constraint) . 2*s1 + . 1*s2 <= 1. 2 (million the hash brown constraint) . 3*s1 + . 3*s2 <=2. 4 (million the lake constraint: the non-negaivity constraint. If we solve the problems and get a negaive value. Slack = 0 (b/c it"s one of the constraint lines of the opimum point: hash brown producion i. Characterisics of opimizaion problems: decisions, constraints, objecives.