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It is also assumed that conditions of certainty exist; that is, coefficients in the objective function and constraints are known with certainty and do not change during the period being studied. Another basic assumption that mathematically sophisticated students should be made aware of is proportionality in the objective function and constraints.

For example, if one product uses 5 hours of a machine resource, then making 10 of that product uses 50 hours of machine time.

LP also assumes additivity. This means that the total of all activities equals the sum of each individual activity. If we consider the feasible region of an LP problem to be continuous i.

In most cases, only one of these feasible solutions yields the optimal solution. A problem can be unbounded if one or more constraints are missing, such that the objective value can be made infinitely larger or smaller without violating any constraints refer to Section 2.

This question involves the student using a little originality to develop his or her own LP constraints that fit the three conditions of 1 unbounded solution, 2 infeasibility, and 3 redundant constraints. These conditions are discussed in Section 2. LP assumes that data pertaining to demand, supply, materials, costs, and resources are known with certainty and are constant during the time period being analyzed.

The application of sensitivity analysis might, however, be useful to determine whether LP would still be a good approximating tool in decision making in this environment. The probability of a random experiment lies within the interval that for any event to happen, the probability is greater than equal to 0 and less than or equal to 1.

Such as, if the variable P denotes the probability of an event then mathematically it can be expressed as:. That is, the minimum possible probability of an event is 0 and the maximum probability of an event is 1.

Such as, in a case of toss of coin, the two possible outcomes are head and tail and the probability for each of the two possible outcomes is. That is,. Chegg Solution Manuals are written by vetted Chegg 1 experts, and rated by students - so you know you're getting high quality answers.

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Managerial Decision Modeling

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Managerial Decision Modeling with Spreadsheets pdf

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