Enterprise optimization

The purpose of EO is to answer the basic question "What do we need to do to earn best-possible profits under continually changing market conditions?"

Enterprise Optimization defines 5 types of resources: Capital, Procurement options, Sales opportunities, Production capabilities, and Information.

For controllable variables with negative OVs, this value shows how much any profit-forfeiting activities are costing.

Field of opportunities (sometimes also called Profit Gap) is another concept of Enterprise Optimization.

[5] The first known application of Linear Programming for the purposes of enterprise optimization was a computerized LP system for an Oregon forest products company in 1967.