Chapter 3

• Categories of LP Problems:• Resource Allocation Problems• Cost-Benefit Trade-off Problems• Mixed Problems• Transportation Problems• Assignment Problems
• Decision variables in a linear programming model are allowed to have any values, including fractional values, that satisfy the functional and nonnegativity constraints. Thus, these variables are not restricted to just integer values.

  Divisibility Assumption of Linear Programming
• According to Chapter 3, Think-Big Capital Budgeting is an example of resource allocation problem
• Resource allocation objective: most effective use of resources
• Cost-benefit trade-off objective: prescribe benefits and achieve these benefits with minimum cost
• Cost-Benefit Trade-off Problem is a type of linear programming problem involving the trade-off between the total cost of the activities under consideration and the benefits to be achieved by these activities.
• Amount used ≤ Amount available

  Resource constraint
• Level achieved ≥ Minimum Acceptable

  Benefit constraint
• Amount provided = Required amount

  Fixed-requirement constraint
• Nonnegativity constraints are not functional constraints
• LHS = Left-hand side ( a SUMPRODUCT function )
• RHS = Right-hand side ( a constant )
• Mixed Problem are any linear programming problem that includes at least two of the three types of functional constraints (resource constraints, benefit constraints, and fixed-requirement constraints).
• Transportation Problems uses the distribution network
• Assignment Problem is a type of linear programming problem that typically involves assigning people to tasks so as to minimize the total cost of performing these tasks
• Resource-Allocation problem is a type of linear programming problem concerned with allocating resources to activities. Its identifying feature is that each functional constraint in its model is a resource constraint.
• Integer programming problem is a variation of a linear programming problem that has the additional restriction that some or all of the decision variables must have integer values.
• Transportation problem is a type of linear programming problem that typically involves finding a shipping plan that minimizes the total cost of transporting a product from a number of plants to a number of customers. 
• Cost table is the table that provides all of the relevant data for an assignment problem by showing the cost for assigning any particular assignee to any particular task
• Model validation is the process of checking and testing a model to develop a valid model
• Model enrichment is the process of using experience with a model to identify and add important details that will provide a better representation of the real problem
• Identifying feature is the feature of a model that identifies the category of linear programming problem it represents