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Decision Variable
A variable you can change in a model or plan.
Definition
Decision variables represent choices like price, ad spend, or display weeks in optimization.
How to Calculate
Define the variable range and constraints in the model.
Why it Matters
Focuses analysis on controllable levers.
Key Advantages
Drives clear what-if scenarios.
Example
Price cut of 10 percent is a decision variable.
Use it to
Specify the variable to be optimized in a plan, such as price or depth, and set its feasible range. Use the decision variable to test scenarios and choose the setting that meets volume and profit goals.
