type
Post
Created date
Oct 23, 2022 03:36 AM
category
Business
tags
Decision Making
status
Published
Language
From
School
summary
slug
password
Author
Priority
Featured
Featured
Cover
Origin
Type
URL
Youtube
Youtube
icon
1. Binary Variables & Logical Conditions
2. Big M — Fix cost problem
We use big m when there is a need to consider a fixed cost. Let’s say product A needs a production set-up cost. So, when we produce A, we not only need the unit cost, but also the set-up cost. In another word, the total cost of product A = unit cost + set-up cost.
The Big M is a constraint where . =1 , when we produce A; it is like a trigger.
To determine the value of M — an upper bound on x — we can make use of our constraints from the constraints by getting potential upper bounds on our x value, then we select the one that we can use.
- Author:Jason Siu
- URL:https://jason-siu.com/article%2Fa1fe2aac-c737-487e-a110-409cc4addb32
- Copyright:All articles in this blog, except for special statements, adopt BY-NC-SA agreement. Please indicate the source!
Relate Posts
Values alignment - Ray Dalio & Naval Ravikant
The AAA Framework - Ali Abdaal
Bouncing Back with Gain Recovery Calculator: The Art of Recouping Financial Losses in Leveraged Investments
Zero to One Extract: Questions that every business must answer
Life - Principles
I'm a master of analysis, coding is just a bonus!
