By David R. Anderson
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Additional resources for An Introduction to Management Science: Quantitative Approaches to Decision Making, Revised (with Microsoft Project and Printed Access Card)
A production capacity constraint would be necessary if, for instance, 5 hours are required to produce each unit and only 40 hours of production time are available per week. Let x indicate the number of units produced each week. 2) The value of 5x is the total time required to produce x units; the symbol Յ indicates that the production time required must be less than or equal to the 40 hours available. The decision problem or question is the following: How many units of the product should be scheduled each week to maximize profit?
Controllable inputs The inputs that are controlled or determined by the decision maker. Decision variable Another term for controllable input. Deterministic model A model in which all uncontrollable inputs are known and cannot vary. Stochastic (probabilistic) model A model in which at least one uncontrollable input is uncertain and subject to variation; stochastic models are also referred to as probabilistic models. 20 Chapter 1 Introduction Optimal solution The specific decision-variable value or values that provide the “best” output for the model.
The distinguishing feature of a deterministic model is that the uncontrollable input values are known in advance. If any of the uncontrollable inputs are uncertain and subject to variation, the model is referred to as a stochastic or probabilistic model. An uncontrollable input to many production planning models is demand for the product. A mathematical model that treats future demand—which may be any of a range of values—with uncertainty would be called a stochastic model. In the production model, the number of hours of production time required per unit, the total hours available, and the unit profit were all uncontrollable inputs.
An Introduction to Management Science: Quantitative Approaches to Decision Making, Revised (with Microsoft Project and Printed Access Card) by David R. Anderson