Question

Explain the steps of the analysis (how costs are calculated, the decision variables, the constraints of the LP model, the practical meaning of the optimal solution, etc.) and your recommendations/conclusions.

Answer 1

Decision variables are those quantities that we have to determine in the problem or that we have to optimise means minimize or maximize. For example we have to minimize the cost of a labour.

Now the question is how we calculate it ? So we let decision variables are x, y, and z and then we take combination according to given information and that is where constraint come in.

So it is given by problem maker that time should not increased by some quantity, cost should not increase by this. So by this information we make a model to maximize profit or to minimise cost or something other to optimise and after following constraint.

Practical meaning of this linear programming is that we have the exact value of decision variables which minimise our cost and maximize our profit and no value other than this can satisfy it.