Parameters - the constant which are there in the constraints (right hand side values).Constraints - any limitations on values that can be allocated to decision variables in terms of equations or inequalities.Objective function - It is a measure of performance (profit) which is expressed as mathematical function of decision variables.
x n) - 'n' refers to associated quantifiable decisions to be made. The mathematical model of any business problem is described as the organization of equations and other related mathematical expressions. This phase is to recreate the problem in mathematical symbols and expressions.
To get precise understanding of problem.OR team normally spends large amount of time in collecting important data.Some of the objectives contain maintaining stable price, increasing the share in market, profits, enhancing work morale etc. Ascertaining the appropriate objectives is a highly significant aspect of problem definition.The team carries out a thorough technical analysis of the problem and then provides suggestions and recommendations to the management. The OR team generally works in an advisory capacity.This comprises determining appropriate objectives, interrelationships, limitations and alternative course of action.