Objective Function

Mathematical statement of profit (or cost, ect.) for a given solution

Decision Variables

Amounts of either inputs or outputs

Constraints

Limitations that restrict the available alternatives

Feasible Solution Space

The set of all feasible combinations of decision variables as defined by the constraints

Parameters

Numerical constants

Graphical Linear Programming

Graphical method for finding optimal solutions to two-variable problems

Redundant Constraint

A constraint that does not form a unique boundary of the feasible solution space

Enumeration Approach

Substituting the coordinates of each corner point into the objective function to determine which corner point is optimal

Binding Constraint

A constraint that forms the optimal corner point of the feasible solution space

Surplus

When the values of decision variables are substituted into a (greater then/equal to sign) constraint, the amount by which the resulting value exceeds the right-hand-side value

Slack

When the values of decision variables are substituted into a (less than/equal to sign) constraint, the amount by which the resulting value is less that the right-hand-side value

Simplex

A linear programming algorithm that can solve problems having more than two decision variables

Sensitivity Analysis

Assessing the impact of potential changes to the numerical values of an LP model

Range of Optimality

Range of values over which the solution quantities of all the decision variables remain the same

Shadow Price

Amount by which the value of the objective function would change with a one-unit change in the RHS value of a constraint

Range of Feasibility

Range of values for the RHS of a constraint over which the shadow price remains the same