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.
- 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.