Linear Programming

Introduction to CVXPY to maximize marketing ROI — In the age of digital marketing, businesses face the challenge of allocating their marketing budget across multiple channels to maximize sales. However, as they broaden their reach, these firms inevitably face the issue of diminishing returns — the phenomenon where additional investment in a marketing channel yields progressively smaller increases…

Assumptions by Dr. Alvin Ang — Assumptions of LP

Sensitivity Analysis by Dr. Alvin Ang — Interpreting the Solver’s Results Even though the preliminary results were shown in the previous section, we will have a deeper analysis of it here. Step 1: Interpreting the Answer Report The Answer Tab shows the Solver’s results as shown below.

Using Excel Solver by Dr. Alvin Ang — I.Setting Up Excel Solver Lucy’s Madame’s problem can be solved using Microsoft Excel. You need an add-in package, called “Solver” that comes with every Excel pre-installed. However, you need to activate it before it can be used.

Model Formulation by Dr. Alvin Ang — I. Introduction Linear programming (LP, also called linear optimization) is a method to achieve the best outcome (such as maximum profit or lowest cost) in a mathematical model whose requirements are represented by linear relationships. Linear programming is a special case of mathematical programming (mathematical optimization). LP is widely mentioned in undergraduate…

In the mid-20th century, a Soviet mathematician named Leonid Kantorovich was tasked with finding a way to optimize the distribution of resources in the Soviet Union’s planned economy. …

Merging statistics, linear algebra, and data science for optimal decision making — Imagine working for an oil company in the Middle East. A large part of the region’s economy is based on the rigging your organization does and consequently, that is based on whether or not you find oil when you dig a new site. Digging up a new site, and setting…

Transportation problem is a well-known optimization problem in the field of operations research. It involves determining the optimal way to transport goods from sources (such as factories, warehouses, etc.) to destinations (such as retail stores, customers, etc.) while minimizing the total cost of transportation. The problem arises in many practical…

Hello Readers, Hope all of you are doing well and really excited to share the basics of how network optimization works in the supply chain. What is the network? What is Optimization and how can we solve the shortest path problem using the algorithm of the shortest path problem? We…