Optimization - Linear programming

8 important questions on Optimization - Linear programming

What are 4 typical optimization problems ?

  • Maximize profits
  • Minimize costs
  • obtain most effects
  • obtain certain effect, below EC legal limit

What are the 3 components of linear model ?

  • An objective function; max/min
  • a set of constraints
  • A set of decision variables

What is linear programming?

Method to mathematically support decision making by government or company
  • Optimization (max/min) of certain objective
  • Given certain constraints (often including budget)
  • Higher grades + faster learning
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What is redundant constraint?

Een overbodige contraint, die geen effect heeft op Feasiable area

Why sensitivity analysis for optimal solutions ?

Uncertain:
  • Parameter values used were only best estimates
  • Dynamic environment may cause changes
  • "What-if" analysis may provide economical and operational information

What is ceteris paribus?

How much would the optimal value of the objective function change if the right-hand side of a constraint is changed by one unit

What is slack variable?

If a constraint that is lees that its slack or surplus, will no change in the optimal solution

What is so called "shadow price"?

The change to the objective function value per unit increase to a right hand side of a constraint is called 'shadow price". How much allow to spend on plastic

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