21. Describe how or why integer programming OR goal programming OR nonlinear programming (choose ONE) might be used in a real-world business situation. Be as specific as you can and use examples as appropriate.
Goal programming is an aid for decision-making problems with multiple, possibly conflicting goals. Typically, linear goal programming attempts to minimize a weighted sum of deviations from goals. This program is used in real-world business in an attempt to eliminate or, at the least, mitigate this disquieting disconnect. Goal programming is the most widely applied tool of multiple-objective optimization/multicriteria decision making. However, today’s goal programming models, ...view middle of the document...
S. Navy torpedoes
• As well as a host of problems in the general areas of agriculture, finance, engineering, energy, and
Example: Numerical Illustrations
Any single-objective problem, and most multiple objective ones, can be placed into a model format that has been designated as the multiplex model, and then solved via the most appropriate version of a multiplex
(or sequential goal programming) algorithm. For example, consider a conventional (albeit simple)
linear programming problem taking on the following traditional form:
Maximize z 10x1 4x2 (1)
Subject to: x1 x2 100 (2)
x2 4 (3)
x 0 (4)
The multiplex example model
22. Now that you’ve come to the end of the course, what role do you think that quantitative methods can have for a business firm and/or its manager? Support your answer with examples.
I believe that the quantitative methods play a bigger role today in the business world because of the growing need to gain competitive edge over other markets. Business firms need more knowledge and data to analyze and find out what the next course of action should be for the firm both in short and the long run. Decision making process forces and obligates managers to access options and choices by keeping into consideration as many variables at once as possible. This process is available by using quantitative methods because it provides the help the firms need in the search for creative and comfortable solutions for difficult decision. The plan is to analyze and explore the importance of quantitative aids for managers in assisting the process of decision making. It will seek to describe some of the most common quantitative decision making tools and analyze their use and importance to managers in business today for effective decision making.
The need for quantitative methods in business in the current technology age, where every company or firm wants to go global and the only source of promoting their product can only be achieved through the internet. Decision Analysis is the method which is based on the use of quantitative decision making techniques for decisions where uncertainty exists and the outcomes are not known to managers. This technique is used to break the complicated methods or data into smaller chunks and then recombined after the data is refined to be used for the decision makers need. The most important goal of decision analysis is to draw a clear line of distinction between the choices and the distinctiveness of the...