Linear Programming with Excel Solver. Use Excel’s Solver as a tool to assist the decision maker...
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Transcript of Linear Programming with Excel Solver. Use Excel’s Solver as a tool to assist the decision maker...
Linear Programming
with
Excel Solver
Use Excel’s Solver as a tool to assist the decision maker in identifying the optimal solution for a business decision.
Business decisions are often subject to constraints or business rules to solve business problems.
Solver can be used for decisions, such as, maximizing profit or reducing costs.
Determine the changing cells. These are the variables that Excel will use to determine the optimal result.
Wyndor Glass Co. Example
Plant
Production Time per Batch (hrs)
Production TimeAvailable per Week
Product1 Product2
1 1 0 ≤ 42 0 2 ≤ 123 3 2 ≤ 18
Profit per Batch $3,000 $5,000
What are the decisions to be made? What are the variables? Production Rate (how much to produce)
of Products 1 and 2 What are the constraints?
Hours of production time used (per week) cannot exceed the number of available hours at each plant
What is the overall measure of performance? Total profit per week from Products 1
and 2 (objective is to maximize)
Set up in Excel worksheet
What are the decisions to be made? What are the variables?
Production Rate (how much to produce) of Products 1 and 2
What are the constraints?Hours of production time used cannot exceed the number of available hours at
each plant
What is the overall measure of performance?Total profit per week from Products 1 and 2 (objective is to maximize)
Enter the target cell, changing cells, and constraints into the Solver Parameters window.