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DECISION ANALYSIS (HSM-MJNB1W12-S1FIN24_4A-K)

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Decision variables

represent _________

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Nanda wants to do a

part time job during her spring break. She has two jobs now—one in an

admissions office and the other in a nearby restaurant. She does not want to

work for more than 40 hours per week. She believes that working in the

restaurant is easier than working in the admissions office. Since the job at

the admissions office demands a high degree of attention, she wants to work

more in the restaurant. For every 1 hour of working at the admissions office,

she plans to work 2 hours in the restaurant. She wants to work up to 22 hours

in the restaurant. She will get a revenue of £9 per hour of work at the

admissions office and £7 per hour in the restaurant. She wants to determine the

number of hours she should work in the admissions office (x1) and the

restaurant (x2) to maximize her earning per week during the spring break.

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A linear programming

model’s constraints are nonlinear relationships that describe the restrictions

placed on the decision variables

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_____________

represent a restriction on decision variable values for a linear programming

problem.

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Operations mangers

find very few types of linear program models applicable today because finding

an optimal solution is no longer a concern.

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 are constant values that are generally coefficients of the symbols in an equation.

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Matching

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The is a linear mathematical relationship that describes the objective of the firm in terms of the decision variables.

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is a model that consists of linear relationships representing a firm’s decision(s), given an objective and resource constraints.

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is a linear relationship that represents a restriction on decision making.

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