SAS Marketing Optimization: Scenario Modeling Tip A

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Tip: The Basics: How to Approach a Modeling Optimization Problem

Start with these basic ideas:

• Identify the most important parts of the problem that you want to capture in the optimization model.
• Decide what simplifications are acceptable in the context of the problem.
• Consider the need to simplify the model to be a standard part of the process. 
• Assume that in any optimization problem there is a trade-off between realism and solvability.
• Focus on solvability: assume that communications are independent from one another, and the objective and constraint contributions are linear.