This discussion thread is worth one extra credit point on the midterm - and may help you answer an essay question on the midterm. Please respond to this thread by October 27, but ongoing discussion is always allowed and appreciated.
In Case Problem one, we simply added up the profit contributions for the Holiday Mix, the Deluxe Mix, and the Regular Mix (of nuts). By the very nature of linear programming, we assumed no interaction between the various terms being added together in the objective function.
MBA (and project management) programs are rather typical of this - simply add together the contributions of the various components, and as long as each component does their best, all we have to do is add together these components and we will have an optimal whole!
In what cases might this be a fallacy? For example, what is the impact if the travel department attempts to optimize its costs? Might that negatively impact other departments?
Why is it that the whole rarely even equals the sum of its parts, let alone be more than the sum of the parts?
We will do an in class exercise on October 27 that will force you to examine the issue of interactions. In preparation for that, please record your thoughts here. Good luck, and have fun.
In Case Problem one, we simply added up the profit contributions for the Holiday Mix, the Deluxe Mix, and the Regular Mix (of nuts). By the very nature of linear programming, we assumed no interaction between the various terms being added together in the objective function.
MBA (and project management) programs are rather typical of this - simply add together the contributions of the various components, and as long as each component does their best, all we have to do is add together these components and we will have an optimal whole!
In what cases might this be a fallacy? For example, what is the impact if the travel department attempts to optimize its costs? Might that negatively impact other departments?
Why is it that the whole rarely even equals the sum of its parts, let alone be more than the sum of the parts?
We will do an in class exercise on October 27 that will force you to examine the issue of interactions. In preparation for that, please record your thoughts here. Good luck, and have fun.