is a mathematical theory for developing strategies that maximize gains and minimize losses while adhering to a given set of rules and constraints.

OPTIMISATION

Explanation:

Optimisation is a mathematical theory for developing strategies that maximize gains and minimize losses while adhering to a given set of rules and constraints.

The theory has a target function to be maximised or minimised, dependent on its explanatory variable(s), with respect to which the function has to be maximised or minimised. It also has constraints which might be binding factors to maximisation / minimisation.

Eg : Revenue optimising output is found by maximising profit function with respect to constraint function in forms of cost etc.