M B A 8590 Chapter Notes - Chapter 2: Linear Programming, Spreadsheet

• School: Clemson University
• Department: Business Administration
• Course: M B A 8590
• Professor: Gabriela Sava

Document Summary

Decision modeling 859 book notes ch. The word linear in the name refers to the form of the mathematical expressions in this model. Progra(cid:373)(cid:373)i(cid:374)g does(cid:374)"t refer to co(cid:373)puter progra(cid:373)(cid:373)i(cid:374)g; rather, it is esse(cid:374)tiall(cid:455) a s(cid:455)(cid:374)o(cid:374)(cid:455)(cid:373) for planning. Linear programming means the planning of activities represented by a linear mathematical model. Sumproduct formula in excel, when two ranges are selected (e. g. : c7:d7 and c12:d12) then the software does the following (c7*c12 + d7*d12) I(cid:374) e(cid:454)cel it"s not necessary to continue using trial and error to explore to optimum solution of a range of possibilities. Excel solver can be used to quickly find the best solution. A linear programming model can be formulated either as a spreadsheet model or as an algebraic model. Both versions have their advantages and it can be helpful to bilingual. An algebraic model provides a very concise and explicit statement of the problem.