LAGRANGE MULTIPLIER. BY ENI SUMARMININGSIH, SSI, MM. Constained Optimization. “Constrained Optimization” involves the optimization of a process subject to constraints. Constraints have two basic types — Equality Constraints -- some factors have to equal constraints
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
BY ENI SUMARMININGSIH, SSI, MM
“Constrained Optimization” involves the optimization of a process subject to constraints.
Constraints have two basic types
— Equality Constraints -- some factors have to equal constraints
— Inequality Constraints -- some factors have to be less less than or greater than the constraints (these are “upper” and “lower” bounds
Subject to (s.t.):
Total costs = Budget = p1x1 + p2x2
In this case, transform optimization of a
“constrained” situation to optimization of
Shadow Price is the Rate of change of objective function per unit change of constraint
This is meaning of Lagrangean multiplier
Let’s see how this works in example, by changing constraint by 0.1 units:
1. Minimize f(x) = +
2. Minimize +