Formulate the objective function and constraints in terms of these decision variables?

What are the information needs of different decision makers?

continue with operations if they appear uneconomic. The chapter examines the techniques useful in helping to make decisions in these areas.Elements of a decisionA quantitative decision problem involves six parts:a) An objective that can be quantified Sometimes referred to as 'choice criterion' or 'objective function', e.g. maximisation of profit or minimisation of total costs. b) Constraints Many decision problems have one or more constraints, e.g. limited raw materials, labour, etc. It is therefore common to find an objective that will maximise profits subject to defined constraints.c) A range of alternative courses of action under consideration. For example, in order to minimise costs of a manufacturing operation, the available alternatives may be:i) to continue manufacturing as at presentii) to change the manufacturing methodiii) to sub-contract the work to a third party.d) Forecasting of the incremental costs and benefits of each alternative course of action.e) Application of the decision criteria or objective function, e.g. the calculation of expected profit or contribution, and the ranking of alternatives.f) Choice of preferred alternatives.