12. Deterministic Decision Models

  1. Paolo Brandimarte

Published Online: 24 MAY 2011

DOI: 10.1002/9781118023525.ch12

Quantitative Methods: An Introduction for Business Management

Quantitative Methods: An Introduction for Business Management

How to Cite

Brandimarte, P. (2011) Deterministic Decision Models, in Quantitative Methods: An Introduction for Business Management, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118023525.ch12

Publication History

  1. Published Online: 24 MAY 2011
  2. Published Print: 4 APR 2011

ISBN Information

Print ISBN: 9780470496343

Online ISBN: 9781118023525



  • continuous linear programming;
  • deterministic decision models;
  • integer linear programming;
  • linear programming model;
  • logical decision variables;
  • LP-based branch and bound method;
  • nonlinear programming;
  • quantitative modeling;
  • shadow prices;
  • simplex method


This chapter begins with a classification of decision models; it draws the line between linear and nonlinear programming models, as well as between convex and nonconvex optimization problems. This classification has a quite practical purpose, as it is related to solution methods available to solve each class of problems. Then, the chapter describes a few prototypical linear programming models. The full power of quantitative modeling is unleashed in a separate section, where the author sees how to represent quite intricate problems mathematically by using integer programming techniques, involving logical decision variables. The chapter also deals with nonlinear programming, and introduces quite relevant concepts, such as shadow prices, which have an important economic and managerial significance. Finally, the chapter presents a glimpse of standard solution algorithms like the simplex method for continuous linear programming and the branch and bound method for integer linear programming.

Controlled Vocabulary Terms

quantitative variables