A decision model is a mathematical simulation of the variables and elements inherent in business decisions, aimed at achieving the objectives of an organization by analyzing the relationships and constraints among those variables.
Linear programming is a mathematical technique used for optimization, particularly suited for scenarios involving constraints. This method assists in achieving the best possible outcome, such as maximizing profits or minimizing costs, under specified limitations.
The shadow price represents the change in the optimal value of the objective function for a linear programming problem per unit increase in the right-hand side of a constraint.
