1. optimization:
We have a (single) objective (e.g., maximizing profit or minimizing cost).
We want to find optimal resource allocation using mathematical modeling.
We have supply (resource) and/or demand limitations.
2. Terminologies:
Decision variables x1, x2,…, xn. We get to choose the values of these
Constraints express supply/demand limitations
f(x1, x2,…, xn) ≤ b
f(x1, x2,…, xn) ≥ b
f(x1, x2,…, xn) ＝ b
Objective function expresses the quality of an outcome
max/min g(x1, x2,…, xn)
If a constraint satisfies an equality, it is called binding (,tight, or zero slack).
If a constraint is not binding and LHS is greater than RHS, the difference is called surplus.
If a constraint is not binding and LHS is less than RHS, the difference is called slack.
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