Problem formulation is the process of transforming the verbal description of a decisions problem into a mathematical form that can be solved. Formulating a mathematical model of the problem is the first and probably the most important step in the solution of any real world problem.

Problem formulation is an art in itself, and there are no simple methods or rules available. only with adequate practice can one learn to formulate problems correctly. In general. However, the following stepsare involved.

Step. Identification of the variables. In any L.P problem certain decisions need to be made. These decisions are represented by decision varibles. These decision variables are those quantities whose values we wish to determine. In any event, the decision variables should be identified as a first step in the development of an LP model.

Step.  Identification of the objective function. The objective function is a mathematical representation of the overall goal stated in terms of the decision variable. For an LPP, the objective function might take the form of maximizing profits or minimizing costs. Thus the second step in formulating an LP is to identify the type of optimization, i.e., maximization or minimization.

Step. Identification of the constraints. Finally, the third step is to identify the set of constraints, stated in terms of the decision varibles, representing the conditions which must be satisfied in determining levels for the decision variables. The constraints might reflect limited labour resources, limited raw materials or might represent the quantity of material demanded by a customer.

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