Simulation & Optimization: Linear Optimization - Final Exam

What are decision variables?

The choices you control

What is objective?

What you’re trying to minimize or maximize

What are constraints?

The rules/limits you must follow

T/F: You can exceed the demand/capacity.

False

How else could you describe the objective?

a straight-line (linear) formula of the variables

How else could you describe the constraint(s)?

straight-line (linear) formulas

What is the first step in linear optimization?

Define your decision variables (e.g., Regular and Discount tickets for a flight would be R = how many regular seats to sell and D = how many discount seats to sell)

What is the second step in linear optimization?

Figuring out how much of a decision variable(s) you need in order to minimize or maximize something (e.g., choosing how many regular and discount seats to sell to make the most money)

What is the third step in linear optimization?

Figuring out what are your constraints (non-negative and doesn’t exceed demand/capacity)

What is a greedy approach in this airline seat problem, and is it always optimal?

Greedy = fill seats with the highest-price demand first. It can be feasible, but it’s usually NOT optimal