Figure 3
The diagram illustrates the "ORDER ALLOCATION PROBLEM" solved using "2-Stage Linear Programming". The model is split into two boxes representing the sequential stages, connected by a dashed gray arrow labeled "1st Stage" and "2nd Stage". The first stage contains "Objective Function: Min Total Purchasing Cost" with Total Purchasing Cost highlighted. This is Subject to a list of constraints, including "Constraint 1", "Constraint 2", up to " Constraint C". The second stage, "2nd Stage", has the "Objective Function: Max Summation of n w subscript n dot x subscript n". This is Subject to: "Constraint 1", "Constraint 2", "Constraint on T P C", up to "Constraint C". A dashed arrow indicates the flow of information or results from the Total Purchasing Cost in the 1st Stage to the Constraint on TPC in the 2nd Stage.Two-stage linear programming problem. Source: Created by authors