Identify Some Mathematical Approaches to Aggregate Planning

question 61

Essay

Identify some mathematical approaches to aggregate planning. Which are optimizing?
Which are heuristic?

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Definitions:

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged, leading to a stable state of the game.

Payoff Matrix

A table that shows the potential outcomes of different strategies in a game or decision-making situation for all involved players.

Dominant Strategies

In game theory, strategies that result in the best possible outcome for a player, regardless of the actions taken by other players.

Backward Induction

A method used in game theory and decision-making processes that involves reasoning backwards from the end of a problem or scenario to determine a sequence of optimal actions.