Microsoft Office Tutorials and References

In Depth Information

Key Terms

Solver

Prescriptive Analysis

Scenario

Goal Seek

Descriptive Analysis

Constrained Optimization

Linear Programming

Decision Variables

Objective Function

Constraints

Technology of LP

Infeasibility

Coefﬁcients

LP Formulation

Target Cell

Changing Cell

Right-Hand Side (RHS)

Slack

Not Binding

Binding

Shadow Price

Allowable Increase

Allowable Decrease

Reduced Cost

Non-Linear Programs (NLP)

Integer Programs (IP)

Mixed Integer Programs (MIP)

0-1 Integer Programs

CUMIMTP

Local Optimum

Problems and Exercises

1. Name 2 types of Prescriptive Analysis and 2 types of Descriptive Analysis.

2. Simulation is to Linear Programming as Descriptive is to ___________?

3. Constrained optimization optimizes an objective function without regard to

factors that constrain the selection of decision variables—T or F?

4. Decision variables in Linear Programming are always integer valued—T or F?

5. Identify the following relationship as either linear of non-linear:

a. 2X + 3Y

=

24

b. 4/X + 3Y
2

=

45

c. 3XY – 8Y

=

0

d. 4X

=

6Y

6. For the following linear programs, what is the solution? Do not use Solver; use

strict observation:

a. Maximize: Z

=

4X; Subject to: X<

=

6

b. Maximize: Z

=

2X + 5Y; Subject to: X

=

5andX+Y<

=

12

c. Minimize: Z

=

12X + 2Y; Subject to: X>

=

3 and Y >

=

4

d. Minimize: Z

=

X – Y; Subject to: X>

=

0 and Y<

=

26

7.
Knapsack Problem
- Consider a number of possible investments in contracts

for various projects that can ﬁt into a budget (knapsack). Each investment in a

contract has a cost and a return in terms of millions of dollars, and the contracts

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