Applied Mathematical Programming for Business and Economics

Book excerpt: This introductory/intermediate level textbook focuses on mathematical programming and its applications. It introduces basic linear programming -- the easiest form of mathematical programming with emphasis on economic interpretation of the model solution. Well-known applications of linear programming to problems in business and agriculture are presented.The text then extends into more advanced forms of mathematical programming including quadratic and integer programming. These models include the introduction of risk and uncertainty into decision-making and a class of models known as price endogenous models in which market equilibrium analyses can be modelled. Integer programming includes conditional decision-making model, machinery selection, and a class of models known as supply chain models.Supplements are provided to assist solution of the models using either GAMS or Excel, the two most widely used software packages for solution of mathematical programming models.