Mathematical optimization refers to the selection of an optimal solution from a bunch of alternatives by using mathematical equations. It is used in almost every industry to solve problems and arrive at an optimal decision. These are a few areas where mathematical optimization/programming is used:
- Transportation/Routing Problems
- Scheduling Problems
- Optimal Diet Problem
- Facility Allocation
- Production Planning etc.
There are 3 main parts in an optimization problem:
- Objective function (what are we trying to solve: either minimize/ maximize the function)
- Decision variables (which are the variables that can be changed to accomodate our objective function)
- Constraints (what are the bounds of our problem)