Chapter 2

• Linear Programming uses a mathematical model to represent the problem being studied
• Linear programming means the planning of activities represented by a linear mathematical model
• Linear Programming aids decisions about how to allocate its resources to various activities to best meet organizational objectives
• 3 key questions need to be answered to begin the process of using the spreadsheet to formulate a mathematical model: (1) What are the decisions to be made? (2) What are the constraints on these decisions? (3) What is the overall measure of performance for these decisions?
• The cells showing the data as data cells. To distinguish the data cellsfrom other cells in the spreadsheet, they are shaded light blue
• Cells containing the decisions to be made are called changing cells. To highlight the changing cells, they are shaded bright yellow with a light border. The changing cells contain the decisions to be made
• Output cells show quantities that are calculated from the changingcells
• The objective cell contains the overall measure of performance for the decisions in the changing cells
• The solutions permitted by all the constraints are the feasible solutions and the portion of the two-dimensional graph where the feasible solutions lie is referred to as the feasible region
• The line forming the boundary of what is permitted by a constraint is sometimes referred to as a constraint boundary line, and its equation may be called a constraint boundary equation. Frequently, a constraint boundary line is identified by its equation.
• Ways to Solve a Problem?

  (1) Spreadsheet Model

  (2) Algebraic Model

  (3) Graphical Model
• Output cells has no color
• Programming does not refer to computer programming; rather, it is essentially a synonym for planning