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29 Cards in this Set

  • Front
  • Back
a scientific approach to solving management problems
management science
people skilled in the application of mgmt science techniques
management scientists
a symbol used to represent an item that can take on any value
variable
known, constant values that are often coefficients of variables in equations
parameters
pieces of info from the problem environment
data
a functional relationship including variables, parameters, and equations
model
independent of volume and remain constant
fixed costs
depend on the number of items produced
variable costs
the difference between total revenue and total cost
profit
the volume that equates total revenue with total cost and profit is zero
break-even point
a model consisting of linear relationships representing a firm's decision given an objective and resource constraints
linear programming
mathematical symbols representing levels of activity
decision variable
a linear relationship reflecting the objective of an operation
objective function
a linear relationship representing a restriction on decision making
constraint
does not violate any of the constraints
feasible solution
violates at least on of the constraints
infeasible solution
an area on the graph bounded by the constraint equations
feasible solution area
the best feasible solution
optimal solution
corner points on the boundary of the feasible solution area
extreme points
used to analyze changes in model parameters
sensitivity analysis
can occure when the objective function is parallel to a constraint line
optimal solution
represents unused resources
slack variable
represents an excess above a constraint requirement level
surplus variable
has no feasible solution area; every possible solution point violates one or more constraints
infeasible problem
the objective function can increase indefinitely without reaching a maximum value
unbounded problem
the slope of a constraint or objective function line is constant
proportionality
the values are continuous or divisible
decision variable
assumed to be known with certainty
model parameters
the marginal economic value of an additional unit of a resource.
shadow price