One-Way Data Tables - ANSWERSCan be used to evaluate multiple outputs (i.e. profit and revenue)
Two-Way Data Tables - ANSWERSCan be used to evaluate ONLY ONE output variable. To evaluate
multiple, you will need to make multiple of these data tables.
Predictive models - ANSWERS-focus on understanding the future
-involve multiple time periods
-incorporate uncertainty element
Sales levels - ANSWERSoften used to plan inventory levels (predictive decision models)
Optimization Models - ANSWERShave been used extensively in operations and supply chains, finance,
marketing, and other disciplines
Has 3 elements:
1. decision variables
, 2. objective to maximize or minimize
3. constraints
Optimization is the process of... - ANSWERSselecting values of decision variables that minimize or
maximize some quantity of interest.
Objective function - ANSWERSthe quantity you are trying to maximize or minimize (in optimization)
Optimization - ANSWERSthe most important tool in PRESCRIPTIVE analytics ("optimize your prescription"
- Casey)
Constraints - ANSWERSrestrictions placed on potential solutions to a problem
Proportional Relationships Constraint - ANSWERSoften found in problems involving mixtures or blends of
materials or strategies
(proportion of a mixture)
Balance Constraints - ANSWERSensure that the flow of material or money is accounted for at locations or
between time periods
(input=output)
Integer Tolerance - ANSWERSparameter that specifies when the Solver algorithm will terminate an
optimization process with integer constraints
Value of Integer tolerance... - ANSWERSshould be zero in order to find the "guaranteed optimal integer
solution"
financial investment problems are modeled and solved using... - ANSWERSlinear optimization
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