Sunday, 3 November 2013

MBA Operations Notes, Linear programming, Operations,

Linear programming


Management of operations often complex poses problems in modeled may be even linear functions. The technical mathematical of contributes linear programming to solve one wide range of operations management problems.
The linear program structure

Linear styles of programming of a function are formed and the objective constraints of this function. A linear programming model takes the following form:
Objective function:
Z = a1x1 + a2x2 + a3X3 +... + anxn
constraints:
+++ b11X1 b13X3 b12X2... + B1nXn < c1
+++ b21X1 b23X3 b22X2... + B2nXn < c2
.
.
.
+++ bm1X1 bm3X3 bm2X2... + BmnXn < cm
In this system of Linear Equations, Z is the value of the optimized function objective is that, these are values decision variable optimal Xi which found must be, and ai, bij, ci and are of of constant calculated characteristics from the problem.
Assumptions of linear programming


Need linearity of programming in the linear Equations as in the structure indicated below - above. Linear in an equation, Variable decision each multiplied together is one constant coefficient between variables multiplying without any decision and non-linear function: as logarithms. Requires dubious assumptions linearity following elements them:


• proportionality - A change in a Variable - variation even proportional translated is joins the contribution of varying this to the value of the function.
• additivity - the value of the function is the sum of the contributions that each term.
• divisibility - variable decision are can be values you glimpse in non-integer, fractional values. In programming techniques can be used whole names if assumption of divisibility does it not.
In assumptions these more dubious linearity of the linear programming implies certainty, namely known them are and constant coefficients.
Formulation of the problem

With the capable of solving problems with linear facilitated programming computers, will challenge is in the formulation of the problem - translate the statement of the problem in a system of Linear Equations by computer to solve. Information commandeer write for the objective function is derived the problem statement. The problem is the statement formulated as the problem follows:


1 Identify the purpose of the problem, that is, quantity of optimized file must be. For example, can seek to maximize profits.
Two. Identify constraints are decision variables and on them. For example, production and volumes production limits will serve as variable may decision and constraints.
3. Write the function and terms constraints objective in decision variable, using them statement information of the problem of the appropriate coefficient he determine for each term for. Throw all useless information.
April. Add constraints implied, non-negative: as the restrictions.
May. Organize will join system of Equations under appropriate form consistent resolve computer for. For example, all variables set on the left side of their list Equations and in the order of their indices.
The lines to reduce help following guidelines will risk of error in the formulation of the problem:


• Make - take you into account initial conditions.
• that make - you in each Variable function appears objective at least once in the constraints.
• Let them constraints could explicitly consider specified not be. For example, if there are physical quantities must be non - negative, these constraints must be included in the formulation.
The effect of the constraints

Limitations some because it there constraints restrict United Nations of possible values of a variable range. Considered is as a constraint in a cascade of binding change addition, it optimal modifies the solution. Severe constraints not less impact on the optimal binding are not.
Constraint joins tightening cannot value that aggravate the objective function, in loosening and cannot stress that improve enclose the value of the objective function. As such, eleven optimal is a solution, managers can pick them up at this in solution finding improved ways to be relax constraints.
shadow price


The constraint shadow price of one which is the amount changes the objective function value per unit of change in the constraint. Since often determined by resources constraints, a comparison of shadow prices of each precious constraint provides of information on the place the most effective use of resources to achieve the best additional akin valeu

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