Reference no: EM131703310

Part 1

Linear optimization models are the most common optimization models used in organizations today. Linear optimization models are used in finance, marketing, engineering and other disciplines.

Constructing optimization models is an art form requiring logic because there are several ways to formulate a particular problem. Learning how to construct an optimization model is facilitated by observation and studying examples of different optimization model attributes.

Select an organization or industry other than the one you work for, and illustrate an applied example of a type of linear optimization model, describing unique issues with its formulation and implementation. How might the chosen optimization model provide insight for making a good business decision?

Part 2

In an integer linear optimization model, some or all of the variables are restricted to being whole numbers. A special type of integer problem is one in which variables can only be 0 or 1, used to model ‘yes-or-no’ decisions.

Integer linear programming can be used in many application areas such as production planning, scheduling, telecommunications networks, and cellular networks. Using the industry or organization that you used in the question above, choose an integer linear programming application area/function and describe the specific goal/task/problem/ planning issue and how integer programming can be used to derive an optimal solution.