Discuss the concept of optimization models with examples.

Quantitative models that seek to maximize or minimize some objective function while satisfy-ing a set of constraints are called optimization models. An important category of optimization models is linear programming (LP) models. LP models are used widely for many types of operations design and planning problems that involve allocating limited resources among competing alternatives. LP models are also used for many distribution and supply chain management designs and operations such as production planning scheduling. Services use LP to schedule their staff, locate service facilities, minimize the distance traveled by delivery trucks and school buses and, in the case of GE Capital, to design collection strategies to reduce monetary losses.