Optimization and Linear Programming/ Heuristics
Question 1:
In this case you are learning to use LP to determine the
best set of Order Quantities so that you obtain the Optimum (max) amount of
profit for one product line at EBBD.
As you write your report to Wilco to present your results,
consider other applications for Optimization and LP.
Explore the various ways that LP can be used in Logistics to
obtain optimal results, not only at EBBD, but at any company.
Linear programming. (n.d.). Absolute Astronomy. Retrieved
fromhttp://www.absoluteastronomy.com/topics/Linear_programming
Linear programming: Introduction (n.d.). Purplemath.
Retrieved fromhttp://www.purplemath.com/modules/linprog.htm
Question 2:
Consider how you would make the quarterly ordering decision
without using optimization techniques. This is called heuristic decision making
– meaning it is an approximation.
Discuss where heuristic decision making might be better than
using Optimization. What are the benefits v costs? In other words, when is it
not cost effective to spend the additional time and money to obtain the Optimum
solution?
