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11. Which are the main types of the variables in the mathematical model?

Decision Variables are under the control of the decision-maker, the parameters, are beyond (mimo) the control of the decision-maker and are imposed by the external environment.

Parameters:

Exogenous Variables (external) are factor controlled from outside (economic conditions, actions of competitors (konkurence), prices of raw materials).

 Policies and Constraints A decision-maker often operates within constraints imposed by company policy, legal restraints, or physical limitations.  

Performance Measures (výkon) Managers always have objectives or goals that they are trying to achieve.  

Intermediate Variables They are used to relate the decision variables and exogenous variables to the performance measures.

11. Describe the process of formulation and application of the linear programming model.

A. Formulating the model. a) Selection of a Time Horizonb) Selection of Decision Variables and Parameters

c) Definition of the Constraints d) Selection of the Objective Function:

  • Maximize total production, in units, Minimize production time, Maximize share of market for all or some products, Maximize total sales, in dollars or units, Minimize changes of production pattern, Minimize the use of a particular scarce (or expensive) commodity.

B. Gathering the data. C. Obtaining an optimal solution. a) Calculations b) Computer software D. Applying sensitivity analysis. a) Data Uncertainty How the changes in the input data will influence the solution b) Dynamic Considerations Development in time c) Input Errors

E. Testing and implementing the solution. The solution should be tested fully to ensure that the model clearly represents the real situation. When testing is complete, the model can be implemented. Implementation usually means solving the model with real data

  1. What is the goal of the linear programming model?

To find production levels that will produce the max profit or min cost, the model will clearly represent the real situation.

2 Introduction to linear programming

13. Describe the linear programming model (3 parts). 3 parts of model: a) Objective (target) function – a linear mathematical relationship describing an objective of the firm, in terms of decision variables – this function is to be maximized or minimized. The decision maker will use it to evaluate alternative solutions to the problem. b) Constrains (conditions) consist of variables, are in form of inequalities a) capacityc. (<=) b) requirement (<=) c) exact value (=) d) balance (compering variables to each other)

c)Nonnegativity constrains (every x >=0)

14. Describe the constraints and the objective function in the linear programming model.

objective function a linear mathematical relationship describing an objective of the firm, this function is to be maximized or minimized. The decision maker will use it to evaluate alternative solutions to the problem.

15.Which are the basic groups of applications of the linear programming model?

The shift pattern problem,The cutting problem, Transportation problem, travelling salesman problem, shortest path problem, optimization, maximum flow problem

16.Describe the shift pattern problem. The production manager wants to devise a shift pattern for his workforce, objective is to simply find a feasible schedule to satisfy all constraints, have the minimum work-force.

17. Describe the cutting problem. The goal of this is to cut product into required size with minimum waste and sell it with maximum profit (as much pieces as possible)