Optimization and Linear Programming/ Heuristics
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In this case you are learning to use LP to determine the best set of Order Quantities so that you obtain the Optimum (max) amount of profit for one product line at EBBD.
As you write your report to Wilco to present your results, consider other applications for Optimization and LP.
Explore the various ways that LP can be used in Logistics to obtain optimal results, not only at EBBD, but at any company.
Linear programming. (n.d.). Absolute Astronomy. Retrieved fromhttp://www.absoluteastronomy.com/topics/Linear_programming
Linear programming: Introduction (n.d.). Purplemath. Retrieved fromhttp://www.purplemath.com/modules/linprog.htm
Consider how you would make the quarterly ordering decision without using optimization techniques. This is called heuristic decision making - meaning it is an approximation.
Discuss where heuristic decision making might be better than using Optimization. What are the benefits v costs? In other words, when is it not cost effective to spend the additional time and money to obtain the Optimum solution?
Linear Programming (LP) is a type of mathematical modeling that uses mathematics and statistics to achieve an optimal outcome. The objective of the LP model is typically expressed as a linear equation for finding maximum profit or minimizing cost, as the case may be. The model has constraints that are expressed as linear equations (1). These constraints are used to denote the limited resources—such as money, labor hours, raw materials, and space—available (2).
There are various methods for solving LP problems, such as Simplex method, graphical method and Karmarkar's algorithm. These methods rely on the linearity of the equations in the LP problems. Due to the nature of optimal solutions, the optimal solution, if one exists, will be located at a corner point of the necessarily convex feasible region defined by the constraints. The Simplex method is ...
The expert examines optimization and linear programming for heuristics. The solution is answered in 555 words with two references are cited.