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Typical process |
- Identify decision variables
- Objective function
- Split variables according to distinct segments for simplicity
- Constraints:
- Supply
- Demand
- Pricing
- Material
- Machinery
- Production mixture
- Inventory
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Supportive |
- Slack: <=
- Surplus: >=
- Binding constraint: contains optimal sol
- Shadow price: O.C. of unit increase of constraint
- Sensitivity studies: allowable range of the objective coefficients without changing optimal solution
- Assumes: proportionality, additivity & continuity
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Formulation |
- Decision var. in units
- Objective function for problem
- Constraints in inequalities
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TORA solution |
- Formulate in canonical form: equalities & basic var. added
- Tableau
- Basic var. (bv):
- Design var.:
- Constraint values (cv):
- Obj. value (-z): optimal when ALL -ve
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