Optimization models and business functions
Not what you're looking for?
Which business functions are more likely to use optimization models than others and why?
Purchase this Solution
Solution Summary
The business functions which are more likely to use optimization models than others are examined.
Solution Preview
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.
Price Optimization Models ...
Purchase this Solution
Free BrainMass Quizzes
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.