What is the purpose of an optimization model?

The purpose of an optimization model is fundamentally to identify the most advantageous decision or selection from a range of available options. This involves analyzing various alternatives based on defined criteria to ascertain which option yields the best results, whether that be in terms of cost, efficiency, resource utilization, or other relevant metrics.

In the context of decision-making, optimization models employ mathematical techniques to evaluate the trade-offs inherent among alternatives. The outcome is not just about finding a solution, but attaining the best solution under the specific constraints and objectives established in the model.

While determining the cost of alternatives, simulating different outcomes, and evaluating project feasibility are important aspects of decision-making processes, they do not encapsulate the primary goal of optimization, which is to seek out the best possible choice. These other options may feed into the optimization process, but they do not define its core purpose.