Quiz 1

Objective functions, constraints, absolute and relative references, mixed references, SUMPRODUCT(), SUM(), Excel modeling, binding and non-binding constraints, and algebrac formulation

quantatative decision making

using quantatative models to make better business decisions and interpreting them for solutions

program

plan or system under which action may be taken towards a goal

linear

mathematical representation best described by straight lines, using variables without any exponents, square roots, or other higher order items, and using variables that don’t get multipled with or divided by each other

linear programming

tool that allows us to use a system of linear statements to find the best way to achieve an objective

linear programming model

way to represent a situation (real or hypothetical) that we wish to better understand

variable

unknown thing that must be decided, single quantatative decision that must be made (how many)

objective function

something we can quantify with linear function, deescribes whay we want to optimize

optimizing the objective function

maximizing or minimizing objective

constraints

limits on system, specify with linear statements

relative reference

all cells move

absolute reference

paste exact cell value

=SUMPRODUCT()

takes items in matching positions, multiplies them together, and sums the final products.

ex: SUMPRODUCT(b1:b2,c1:c2) → (b1)(c1)+(b2)(c2)

binding constraint

amount used = amount available, all resources consumed

non-binding constraint

amount used < amount available, not all resources consumed

non-negativity constraint

variable cannot be below 0, can be binding

mixed reference

hybrid of absolute and relative

algebraic model order

1. state variable declarations

2. objective function

3. constraints

4. non-negativity constraints

excel legend

yellow fill = given fact

green fill = objective function

blue outline = constraints

red outline = decision cells