Operations Management- Linear Programming

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