What is the role of the cost function?
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The cost function in linear programming defines the objective of minimizing costs or maximizing profits, guiding the optimization process by expressing the total cost associated with decision variables. It is essential for finding the most cost-effective solution while satisfying constraints, aligning decision-making with financial goals and resource efficiency.
Objective: It sets the aim to minimize costs.
Mathematical Formulation: It's expressed as a linear equation with decision variables and their associated costs.
Decision Guidance: It helps determine the best way to allocate resources to lower total costs.
Feasibility: It interacts with constraints that limit resources, shaping the possible solutions.
Performance Measure: The final value at the optimal solution shows how effective the strategy is.