Optimization Flashcards
Describes the behavior of measurement of effectiveness that should be maximized or minimized.
Objective Function
It may be the expected return on a stock portfolio, a company’s production costs or profits, or the time or arrival of a vehicle at a specified destination.
Objective
Variables that can be directly controlled by the decision-maker.
Decision Variables
It may be quantities of stock to be bough or sold, the amounts of various resources to be allocated to different production activities, or the route to be followed by a vehicle through a traffic network.
Decision Variables
Restriction on the values that the variables can take.
Functional Constraint
For instance, a manufacturing process cannot require more resources than are available, nor can it employ less than zero resources.
Functional Constraint
Elements of Optimization Problems
- Objective Function
- Decision Variables
- Functional Constraint
Seeks to achieve the best possible solution under certain restraining conditions.
Linear Programming
Used in solving practical problems such as allocation of resources by means of linear functions.
Linear Programming
A logical and systematic approach that is concerned with the selection of the best course of action from a number of available options or alternatives.
Decision Theory
Enables the decision maker to analyze a set of complex situations with many alternatives and different consequences.
Decision Theory
A classic method of planning and controlling the progress of a project.
Network Analysis
Methods of Network Analysis
- Critical Path Method (CPM)
- Program and Evaluation and Review Technique (PERT)
Based on probability to study the waiting behavior of some real-life queuing systems.
Queuing Theory
Examines every component of waiting in line to be served.
Queuing Theory
