Optimization Tool

The Optimization tool solves linear programming (LP), mixed integer linear programming (MILP), and quadratic programming (QP) optimization problems using matrix, manual, and file input modes.

This tool uses the R programming language. Go to Options > Download Predictive Tools to install R and the packages used by the R Tool.

What is Optimization?

Optimization has wide applications in many industries, such as supply chain, transportation, financial services, retail, telecommunications, and energy. Application areas include supply chain optimization, assortment optimization, portfolio optimization, workforce scheduling, and sports scheduling.

An optimization problem typically has the following mathematical form, consisting of an objective function (first equation), a set of constraints (second equation), and a specification of the types (continuous, integer, binary) and bounds of the decision variables (third equation). The goal is usually to find the values of the decision variables that maximize or minimize the objective, while satisfying all the underlying constraints, types and bounds.

Input Modes

Inputs

No inputs are required for the manual or file input modes. For the matrix input mode, inputs O and A are required (B and Q are optional).

Outputs