Rational conditions that link different components of a company decision are hardly unusual in managerial practice. For instance, a firm can ship just to and from warehouses that are open; patients wanting MRIs can just get service in clinics that have MRI gear; regarding an old power plant, one can decide to shut it or retrofit it, but one obviously cannot retrofit a closed plant.
In optimization models, nevertheless, IF statements lead to non-linearity including all the associated challenges. Fortunately, virtually all plausible conditions can be modeled using binary variables. This note describes some modeling techniques that are helpful for doing that.
PUBLICATION DATE: April 11, 2012 PRODUCT #: UV6347-HCB-ENG
Using Binary Variables to Represent Logical Conditions in Optimization Models Case Study Solution
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
