Finding values of variables that maximize or minimize a given function.
- An optimization problem is a problem in which the values of variables that maximize or minimize a given function are sought.
- The term “economic function” generally refers to the function to be optimized, and “constraints of the problem” refers to the system of relations that links the variables to one another.
Examples
- A farmer wishes to maximize the productivity of a herd of dairy cows.
- The manager of a box manufacturing company wishes to minimize production costs.