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Mathematical Optimization Information

In mathematics and computer science, mathematical optimization (alternatively, optimization or mathematical programming) refers to the selection of a best element from some set of available alternatives.

In the simplest case, this means solving problems in which one seeks to minimize or maximize a real function by systematically choosing the values of real or integer variables from within an allowed set. This formulation, using a real-valued objective function, is probably the simplest example; the generalization of optimization theory and techniques to other formulations comprises a large area of applied mathematics. More generally, it means finding "best available" values of some objective function given a defined domain, including a variety of different types of objective functions and different types of domains.

In applications, optimization is used in engineering and economics.

Contents

History

Fermat and Lagrange found calculus-based formulas for identifying optima, while Newton and Gauss proposed iterative methods for moving towards an optimum. Historically, the first term for optimization was "linear programming", which was due to George B. Dantzig, although much of the theory had been introduced by Leonid Kantorovich in 1939. Dantzig published the Simplex algorithm in 1947, and John von Neumann developed the theory of duality in the same year.

The term programming in this context does not refer to computer programming. Rather, the term comes from the use of program by the United States military to refer to proposed training and logistics schedules, which were the problems Dantzig studied at that time.

Later important researchers in mathematical optimization include the following:

Major subfields

In a number of subfields, the techniques are designed primarily for optimization in dynamic contexts (that is, decision making over time):

Multi-objective optimization

Main article: Multiobjective optimization

Adding more than one objective to an optimization problem adds complexity. For example, if you wanted to optimize a structural design, you would want a design that is both light and rigid. Because these two objectives conflict, a trade-off exists. There will be one lightest design, one stiffest design, and an infinite number of designs that are some compromise of weight and stiffness. This set of trade-off designs is known as a Pareto set. The curve created plotting weight against stiffness of the best designs is known as the Pareto frontier.

A design is judged to be Pareto optimal if it is not dominated by other designs: a Pareto optimal design must be better than another design in at least one aspect. If it is worse than another design in all respects, then it is dominated and is not Pareto optimal.

Multi-modal optimization

Optimization problems are often multi-modal, that is they possess multiple good solutions. They could all be globally good (same cost function value) or there could be a mix of globally good and locally good solutions. Obtaining all (or at least some of) the multiple solutions is the goal of a multi-modal optimizer.

Classical optimization techniques due to their iterative approach do not perform satisfactorily when they are used to obtain multiple solutions, since it is not guaranteed that different solutions will be obtained even with different starting points in multiple runs of the algorithm. Evolutionary Algorithms are however a very popular approach to obtain multiple solutions in a multi-modal optimization task. See Evolutionary multi-modal optimization.

Concepts and notation

Optimization problems

Main article: Optimization problem

An optimization problem can be represented in the following way

Given: a function f : A R from some set A to the real numbers
Sought: an element x0 in A such that f(x0) ≤ f(x) for all x in A ("minimization") or such that f(x0) ≥ f(x) for all x in A ("maximization").

Such a formulation is called an optimization problem or a mathematical programming problem (a term not directly related to computer programming, but still in use for example in linear programming - see History above). Many real-world and theoretical problems may be modeled in this general framework. Problems formulated using this technique in the fields of physics and computer vision may refer to the technique as energy minimization, speaking of the value of the function f as representing the energy of the system being modeled.

Typically, A is some subset of the Euclidean space Rn, often specified by a set of constraints, equalities or inequalities that the members of A have to satisfy. The domain A of f is called the search space or the choice set, while the elements of A are called candidate solutions or feasible solutions.

The function f is called, variously, an objective function, cost function, energy function, or energy functional. A feasible solution that minimizes (or maximizes, if that is the goal) the objective function is called an optimal solution.

Generally, when the feasible region or the objective function of the problem does not present convexity, there may be several local minima and maxima, where a local minimum x* is defined as a point for which there exists some δ > 0 so that for all x such that

the expression

holds; that is to say, on some region around x* all of the function values are greater than or equal to the value at that point. Local maxima are defined similarly.

A large number of algorithms proposed for solving non-convex problems – including the majority of commercially available solvers – are not capable of making a distinction between local optimal solutions and rigorous optimal solutions, and will treat the former as actual solutions to the original problem. The branch of applied mathematics and numerical analysis that is concerned with the development of deterministic algorithms that are capable of guaranteeing convergence in finite time to the actual optimal solution of a non-convex problem is called global optimization.

Notation

It has been suggested that Arg max be merged into this article or section. (Discuss) Proposed since May 2011.

Optimization problems are often expressed with special notation. Here are some examples.

This asks for the minimum value for the objective function x2 + 1, where x ranges over the real numbers . The minimum value in this case is 1, occurring at x = 0.

This asks for the maximum value for the objective function 2x, where x ranges over the reals. In this case, there is no such maximum as the objective function is unbounded, so the answer is "infinity" or "undefined".

This asks for the value (or values) of x in the interval that minimizes (or minimize) the objective function x2 + 1 (the actual minimum value of that function does not matter). In this case, the answer is x = -1.

This asks for the (x,y) pair (or pairs) that maximizes (or maximize) the value of the objective function , with the added constraint that x lies in the interval [ − 5,5] (again, the actual maximum value of the expression does not matter). In this case, the solutions are the pairs of the form (5, 2kπ) and (−5,(2k+1)π), where k ranges over all integers.

Classification of critical points and extrema

Feasibility problem

The satisfiability problem, also called the feasibility problem, is just the problem of finding any feasible solution at all without regard to objective value. This can be regarded as the special case of mathematical optimization where the objective value is the same for every solution, and thus any solution is optimal.

Many optimization algorithms need to start from a feasible point. One way to obtain such a point is to relax the feasibility conditions using a slack variable; with enough slack, any starting point is feasible. Then, minimize that slack variable until slack is null or negative.

Existence

The extreme value theorem of Karl Weierstrass states that a continuous real-valued function on a compact set attains its maximum and minimum value. More generally, a lower semi-continuous function on a compact set attains its minimum; an upper semi-continuous function on a compact set attains its maximum.

Necessary conditions for optimality

One of Fermat's theorems states that optima of unconstrained problems are found at stationary points, where the first derivative or the gradient of the objective function is zero (see First derivative test). More generally, they may be found at critical points, where the first derivative or gradient of the objective function is zero or is undefined, or on the boundary of the choice set. An equation stating that the first derivative equals zero at an interior optimum is sometimes called a 'first-order condition'.

Optima of inequality-constrained problems are instead found by the Lagrange multiplier method. This method calculates a system of inequalities called the 'Karush–Kuhn–Tucker conditions' or 'complementary slackness conditions', which may then be used to calculate the optimum.

Sufficient conditions for optimality

While the first derivative test identifies points that might be optima, this test does not distinguish a point which is a minimum from one that is a maximum or one that is neither. When the objective function is twice differentiable, these cases can be distinguished by checking the second derivative or the matrix of second derivatives (called the Hessian matrix) in unconstrained problems, or a matrix of second derivatives of the objective function and the constraints called the bordered Hessian. The conditions that distinguish maxima and minima from other stationary points are sometimes called 'second-order conditions' (see 'Second derivative test').

Sensitivity and stability of optima

The envelope theorem describes how the value of an optimal solution changes when an underlying parameter changes.

The maximum theorem of Claude Berge (1963) describes the continuity of an optimal solution as a function of underlying parameters.

Calculus of optimization

Main article: Karush–Kuhn–Tucker conditions See also: Critical point (mathematics), Differential calculus, Gradient, Hessian matrix, Positive definite matrix, Lipschitz continuity, Rademacher's theorem, Convex function, and Convex analysis

For unconstrained problems with twice-differentiable functions, some critical points can be found by finding the points where the gradient of the objective function is zero (that is, the stationary points). More generally, a zero subgradient certifies that a local minimum has been found for minimization problems with convex functions and other locally Lipschitz functions.

Further, critical points can be classified using the definiteness of the Hessian matrix: If the Hessian is positive definite at a critical point, then the point is a local minimum; if the Hessian matrix is negative definite, then the point is a local maximum; finally, if indefinite, then the point is some kind of saddle point.

Constrained problems can often be transformed into unconstrained problems with the help of Lagrange multipliers. Lagrangian relaxation can also provide approximate solutions to difficult constrained problems.

When the objective function is convex, then any local minimum will also be a global minimum. There exist efficient numerical techniques for minimizing convex functions, such as interior-point methods.

Computational optimization techniques

To solve problems, researchers may use algorithms that terminate in a finite number of steps, or iterative methods that converge to a solution (on some specified class of problems), or heuristics that may provide approximate solutions to some problems (although their iterates need not converge).

Optimization algorithms

Main article: Optimization algorithm See also: Algorithm, Combinatorial optimization, and Flow network

Iterative methods

Main articles: Nonlinear programming and Iterative method See also: Newton's method, Quasi-Newton method, Finite difference, Approximation theory, and Numerical analysis

For some nonlinear problems, the computational complexity of evaluating gradients and Hessians can be excessive. Some many problems of nonlinear programming, the iterative methods differ according to whether they evaluate Hessians, gradients, or only function values. While evaluating Hessians and gradients improves the rate of convergence of methods, such evaluations increase the computational cost of each iteration, so that users must select a balance.

Global convergence

More generally, if the objective function is not a quadratic function, then many optimization methods use other methods to ensure that some subsequence of iterations converges to an optimal solution. The first and still popular method for ensuring convergence relies on-line searches, which optimize a function along one dimension. A second and increasingly popular method for ensuring convergence uses trust regions. Both line searches and trust regions are used in modern methods of non-differentiable optimization.

Heuristics

Main article: Heuristic algorithm

Besides (finitely terminating) algorithms and (convergent) iterative methods, there are heuristics that can provide approximate solutions to some optimization problems:

Applications

Mechanics and engineering

Problems in rigid body dynamics (in particular articulated rigid body dynamics) often require mathematical programming techniques, since you can view rigid body dynamics as attempting to solve an ordinary differential equation on a constraint manifold; the constraints are various nonlinear geometric constraints such as "these two points must always coincide", "this surface must not penetrate any other", or "this point must always lie somewhere on this curve". Also, the problem of computing contact forces can be done by solving a linear complementarity problem, which can also be viewed as a QP (quadratic programming) problem.

Many design problems can also be expressed as optimization programs. This application is called design optimization. One subset is the engineering optimization, and another recent and growing subset of this field is multidisciplinary design optimization, which, while useful in many problems, has in particular been applied to aerospace engineering problems.

Economics

Economics relies so heavily on optimization that some economists define their field as the study of optimization under constraints ("scarcity"). Of course, modern optimization theory overlaps with game theory and the study of (economic) equilibria, as well as traditional optimization theory. The Journal of Economic Literature classifies optimization theory and related topics as mathematical and quantitative methods in classes C61–C63.

In microeconomics, the utility maximization problem and its dual problem, the expenditure minimization problem, are economic optimization problems. Insofar as they behave consistently, consumers maximize their utility, while firms maximize their profit. Also, agents are often modeled as being risk-averse, thereby preferring to avoid risk. Asset prices are also modeled using optimization theory, though the underlying mathematics relies on optimizing stochastic processes rather than on statistic optimization. Trade theory also uses optimization to explain trade patterns between nations.

Since the 1970s, economics have modeled dynamic decisions over time using control theory. For example, microeconomists use dynamic search models to study labor-market behavior. Macroeconomists build dynamic stochastic general equilibrium (DSGE) models that describe the dynamics of the whole economy as the result of the interdependent optimizing decisions of workers, consumers, investors, and governments.[1]

Operations research

Another field that uses optimization techniques extensively is operations research. Operations research also uses stochastic modeling and simulation to support improved decision-making. Increasingly, operations research uses stochastic programming to model dynamic decisions that adapt to events; such problems can be solved with large-scale optimization and stochastic optimization methods.

Solvers

Main article: List of optimization software

See also

Notes

  1. ^ Julio Rotemberg and Michael Woodford (1997), 'An optimization-based econometric framework for the evaluation of monetary policy.' NBER Macroeconomics Annual 12, pp. 297-346.

Further reading

Comprehensive

Undergraduate level

Graduate level

Continuous optimization

Combinatorial optimization

External links

Solvers:

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