Mathematical Models for optimisation and decision problems

Last updated: 01/03/2026

How to model a mathematical problem?

Mathematical Models for optimisation and decision problems

We are going to explain examples of models thoroughly to understand the basis of a mathematical model.

Coin Change

Exchange an amount $Q$ using a minimum number of coins. There are $n$ types of coins, being $v_k$, with $1 \leq k \leq n$ their values.
Case 1: an infinite number of coins
Case 2: each coin of value $v_k$ is available exactly $d_k$ times, with $1\leq k \leq n$.

DATA

DECISION VARIABLES

$x_k$: How many coins does the value $v_k$ use.

RESTRICTIONS

$$ \sum_{k=1}^{n} v_{k}x_{k} = Q $$ $$x_{k} \in \mathbb{Z}^{+}{0}, 1 \leq k \leq n$$ $$x{k}\leq d_{k}, 1 \leq k \leq n$$

OBJECTIVE

Minimizing:$$\sum_{k=1}^{n} x_k$$

Production of tables and chairs

A firm produces tables and chairs and sells them with a profit of 6 u.m and 8 u.m. Each table requires 30 wooden feet, and 5 hours of work. Each chair requires 20 wooden feet and 10 hours of work. You have 300 wooden feet and 110 hours of work. How should be the production so it maximizes the profit?

DATA

DECISION VARIABLES

RESTRICTIONS

OBJECTIVE

Maximize the profit value: $6x_{T}+ 8x_C$ TableChairProfit The point A is the intersection of both expressions written above. Its coordinates are (9,4), with y-axis being $x_C$ and x-axis $x_T$ . The maximum profit value is: $6\times 4 + 8\times 9 = 24 + 72 = 96 u.m.$

Belt production

A company can make belts of two types: A and B, with profits of 0.4 u.m. and 0.3 u.m. respectively. If we only produced B belts, we could produce up to 1000 belts. The production of a A belt takes double the time of the production of a B belt. On the other hand, we can only obtain leather daily to produce a total of 800 belts (A + B). Because A belts require a special leather, they can only produce a total of 400 belts daily, but B belts can make up to 700 daily. How should be the daily production of that factory?

DATA

DECISION VARIABLES

RESTRICTIONS

OBJECTIVE

Maximize profit (u.m.): $0.4 x_{A}+ 0.3 x_B$. The maximum profit is pointed in the image below as the yellow dot. Has coordinates (200,600)

beltProfit
A way to find this point is by resolving a system: $$ \begin{cases} x_A + x_B = 800 \ 2x_{A}+ x_{B}=1000 \end{cases} \equiv \begin{cases} x_{B} = 800- x_A \ 2x_{A}+ 800 - x_{A}=1000 \end{cases} \equiv \begin{cases} x_{B} = 800- 200 \ x_{A}=200 \end{cases} \equiv \begin{cases} x_{B} = 600 \ x_{A}=200 \end{cases} $$