LAGRANGE
MULTIPLIER
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
Equality Constraints
Subject to (s.t.):
APPROACH
Shadow Prices
Shadow Price is the Rate of change of objective function per unit change of constraint
SOAL -SOAL
1. Minimize f(x) = + S.t.
2. Minimize + s.t 3. Minimize
s.t.