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# Optimization models and business functions

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Which business functions are more likely to use optimization models than others and why?

##### Solution Summary

The business functions which are more likely to use optimization models than others are examined.

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An optimization model is a type of mathematical model that attempts to optimize (maximize or minimize) an objective function without violating resource constraints; also known as mathematical programming.

Optimization models include linear programming (lp), integer programming, and zero - one programming.

Optimization models are used to find an optimal solution. The linear programming models are mathematical representations of constrained optimization problems. These models share certain common characteristics. Knowing these characteristics enables personnel to recognize problems that can be solved using linear programming. For example, suppose that a firm that assembles computers and computer equipment is about to start production of two new types of computers. Each type will need assembly time, inspection time, and storage space. The amounts of each of these resources that can be devoted to the production of the computers is limited. The manager of the firm would like to determine the quantity of each computer to produce in order to maximize the profit generated by their sale.

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