Using Binary Variables to Represent Logical Conditions in Optimization Models Harvard Case Solution & Analysis

Logical conditions that bind the various elements of the business solutions are very common in management practice. For example, a company can only supply and from the stores, which are open, patients who need an MRI can only get service in clinics that have MRI equipment at the old power plant, you can decide to close it, or modify it, but obviously can not be modified closed plant. The list goes on. The quantitative modeling of such situations, the natural next step is to use IF statements such as IF (N storage in open, then we can ship to / s, otherwise the delivery can not be made to / from the warehouse in N). In optimization models, however, if the application results in a nonlinear, with all its attendant problems. Fortunately, almost all of the logical conditions can be modeled by a linear binary variables. This article describes some useful techniques for modeling this. "Hide
by Anton Ovchinnikov 5 pages. Publication date: April 11, 2012. Prod. #: UV6347-PDF-ENG

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