Problem 1 three products

Units Profit/Unit Profit

Product A 100 $13 $1,300 Constraints
Product B 100 $18 $1,800 (a) The combined production capacity is 300 units per day
Product C 100 $22 $2,200 (b) Existing order: 50 units of product A
Total 300 $5,300 © Anticipated order: 40 units of product B
(d) Market condition: Market for product C is relatively lim

Use Solver to maximize the total Profit.

Page 1
 Problem 1 three products

apacity is 300 units per day

or product C is relatively limited (Demand: Max 40 units of C)

Page 2
 474844439.xlsx

Shipping Costs Table

Delhi Mumbai Chennai
Nagpur ₹ 58 ₹ 47 ₹ 108
Indore ₹ 87 ₹ 46 ₹ 100
Panji ₹ 121 ₹ 30 ₹ 57
Hyderabad ₹ 149 ₹ 66 ₹ 83
Chandigarh ₹ 62 ₹ 115 ₹ 164
Bhopal ₹ 128 ₹ 28 ₹ 38

Number No. to ship from... No. to be

Store Needed Delhi Mumbai Chennai Shipped
Nagpur 150 25 25 25 75
Indore 225 25 25 25 75
Panji 100 25 25 25 75
Hyderabad 250 25 25 25 75
Chandigarh 120 25 25 25 75
Bhopal 150 25 25 25 75
Total 995 150 150 150 450

Warehouse Inventory
Starting Inventory: 400 350 500
No. Remaining: 250 200 350

Shipping Costs: ₹ 15,125.00 ₹ 8,300.00 ₹ 13,750.00 ₹ 37,175.00

Page 3
 474844439.xlsx

Problem:

The company wants to meet the product needs of all the six retail outlets from the
available inventory and keep total shipping charges as low as possible.

Constraints:
(a) The number of units needed by each retail outlet must equal the number shipped.
(b) The number of units remaining in each warehouse's inventory must not be negative

Using solver, find alternative options for shipping materials, while keeping total shipping costs at
a minimum.

Page 4
Microsoft Excel 15.0 Answer Report
Worksheet: [Session 15 Solver solution.xlsx]Problem2 Shipping Costs
Report Created: 05-Mar-19 12:24:28 PM
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0.047 Seconds.
Iterations: 15 Subproblems: 0
Solver Options
Max Time 100 sec, Iterations 100, Precision 0.000001
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 5%, Assume NonNegative

Objective Cell (Min)

Cell Name Original Value Final Value
$G$24 Shipping Costs: Shipped ₹ 55,515.00 ₹ 55,515.00

Variable Cells
Cell Name Original Value Final Value Integer
$D$12 Nagpur Delhi 150 150 Contin
$E$12 Nagpur Mumbai 0 0 Contin
$F$12 Nagpur Chennai 0 0 Contin
$D$13 Indore Delhi 0 0 Contin
$E$13 Indore Mumbai 225 225 Contin
$F$13 Indore Chennai 0 0 Contin
$D$14 Panji Delhi 0 0 Contin
$E$14 Panji Mumbai 100 100 Contin
$F$14 Panji Chennai 0 0 Contin
$D$15 Hyderabad Delhi 0 0 Contin
$E$15 Hyderabad Mumbai 25 25 Contin
$F$15 Hyderabad Chennai 225 225 Contin
$D$16 Chandigarh Delhi 120 120 Contin
$E$16 Chandigarh Mumbai 0 0 Contin
$F$16 Chandigarh Chennai 0 0 Contin
$D$17 Bhopal Delhi 0 0 Contin
$E$17 Bhopal Mumbai 0 0 Contin
$F$17 Bhopal Chennai 150 150 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$C$12 Nagpur Needed 150 $C$12=$G$12 Binding 0
$C$13 Indore Needed 225 $C$13=$G$13 Binding 0
$C$14 Panji Needed 100 $C$14=$G$14 Binding 0
$C$15 Hyderabad Needed 250 $C$15=$G$15 Binding 0
$C$16 Chandigarh Needed 120 $C$16=$G$16 Binding 0
$C$17 Bhopal Needed 150 $C$17=$G$17 Binding 0
$D$22 No. Remaining: Delhi 130 $D$22>=0 Not Binding 130
$E$22 No. Remaining: Mumbai 0 $E$22>=0 Binding 0
$F$22 No. Remaining: Chennai 125 $F$22>=0 Not Binding 125
Microsoft Excel 15.0 Answer Report
Worksheet: [Session 8 Solver solution.xlsx]Problem2 Shipping Costs
Report Created: 12/18/2015 2:06:16 PM
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: GRG Nonlinear
Solution Time: 0.234 Seconds.
Iterations: 19 Subproblems: 0
Solver Options
Max Time 100 sec, Iterations 100, Precision 0.000001
Convergence 0.0001, Population Size 100, Random Seed 0, Derivatives Forward, Require Bounds
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 5%, Solve Without Integer Constraints, Assume

Objective Cell (Min)

Cell Name Original Value Final Value
$G$24 Shipping Costs: Shipped ₹ 33,775.00 ₹ 55,515.00

Variable Cells
Cell Name Original Value Final Value Integer
$D$12 Nagpur Delhi 25 150 Contin
$E$12 Nagpur Mumbai 5 0 Contin
$F$12 Nagpur Chennai 25 0 Contin
$D$13 Indore Delhi 5 0 Contin
$E$13 Indore Mumbai 25 225 Contin
$F$13 Indore Chennai 25 0 Contin
$D$14 Panji Delhi 25 0 Contin
$E$14 Panji Mumbai 25 100 Contin
$F$14 Panji Chennai 25 0 Contin
$D$15 Hyderabad Delhi 25 0 Contin
$E$15 Hyderabad Mumbai 23 25 Contin
$F$15 Hyderabad Chennai 25 225 Contin
$D$16 Chandigarh Delhi 25 120 Contin
$E$16 Chandigarh Mumbai 25 0 Contin
$F$16 Chandigarh Chennai 25 0 Contin
$D$17 Bhopal Delhi 25 0 Contin
$E$17 Bhopal Mumbai 4 0 Contin
$F$17 Bhopal Chennai 25 150 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$C$12 Nagpur Needed 150 $C$12=$G$12 Binding 0
$C$13 Indore Needed 225 $C$13=$G$13 Binding 0
$C$14 Panji Needed 100 $C$14=$G$14 Binding 0
$C$15 Hyderabad Needed 250 $C$15=$G$15 Binding 0
$C$16 Chandigarh Needed 120 $C$16=$G$16 Binding 0
$C$17 Bhopal Needed 150 $C$17=$G$17 Binding 0
$D$22 No. Remaining: Delhi 130 $D$22>=0 Not Binding 130
$E$22 No. Remaining: Mumbai 0 $E$22>=0 Binding 0
$F$22 No. Remaining: Chennai 125 $F$22>=0 Not Binding 125
$E$22 No. Remaining: Mumbai 0 $E$22>=0 Binding 0
$F$22 No. Remaining: Chennai 125 $F$22>=0 Not Binding 125
$D$22 No. Remaining: Delhi 130 $D$22>=0 Not Binding 130
$F$13 Indore Chennai 0 $F$13>=0 Binding 0
$F$12 Nagpur Chennai 0 $F$12>=0 Binding 0
$E$17 Bhopal Mumbai 0 $E$17>=0 Binding 0
$D$15 Hyderabad Delhi 0 $D$15>=0 Binding 0
$E$16 Chandigarh Mumbai 0 $E$16>=0 Binding 0
$E$15 Hyderabad Mumbai 25 $E$15>=0 Not Binding 25
$E$14 Panji Mumbai 100 $E$14>=0 Not Binding 100
$E$13 Indore Mumbai 225 $E$13>=0 Not Binding 225
$E$12 Nagpur Mumbai 0 $E$12>=0 Binding 0
$D$17 Bhopal Delhi 0 $D$17>=0 Binding 0
$D$16 Chandigarh Delhi 120 $D$16>=0 Not Binding 120
ger Constraints, Assume NonNegative
 Problem3 Investment portfolio

Portfolio Amount: ₹ 5,000,000

Constraints to reduce risk

Pct. of (a) The amount that the m
Investment Pct Yield Amount Invested Yield Portfolio he/she invests in useded-
New Car Loans 6.90% 1,000,000 69,000 20.00% (b) Car loans should make
Used Car Loans 8.25% 1,000,000 82,500 20.00% © Unsecured loans should
Real Estate Loans 8.90% 1,000,000 89,000 20.00% (d) Atleast 10% should be
Unsecured Loans 13.00% 1,000,000 130,000 20.00%
Bank FDs 4.60% 1,000,000 46,000 20.00%
TOTAL ₹ 5,000,000.00 ₹ 416,500.00 100.00% Use solver to maximize th

Total Yield: 8.33%

Auto Loans 40.00%

Page 10
 Problem3 Investment portfolio

Constraints to reduce risk:

(a) The amount that the manager invests in new-car loans must be atleastthree times the amount that
he/she invests in useded-car loans
(b) Car loans should make up at least 15% of the portfolio
© Unsecured loans should make up no more than 25% of the portfolio.
(d) Atleast 10% should be in bank FDs.

Use solver to maximize the return on an investment.

Page 11
Microsoft Excel 15.0 Answer Report
Worksheet: [Session 8 Solver.xlsx]Problem3 Investment portfolio
Report Created: 11/28/2015 3:22:23 PM
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: GRG Nonlinear
Solution Time: 0.047 Seconds.
Iterations: 6 Subproblems: 0
Solver Options
Max Time 100 sec, Iterations 100, Precision 0.0001, Use Automatic Scaling
Convergence 0.0001, Population Size 100, Random Seed 0, Derivatives Forward, Require Bounds
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 5%, Solve Without Integer Constraints

Objective Cell (Max)

Cell Name Original Value Final Value
$D$12 Total Yield: Yield 8.33% 9.25%

Variable Cells
Cell Name Original Value Final Value Integer
$C$5 New Car Loans Amount Invested 1,000,000 562,500 Contin
$C$6 Used Car Loans Amount Invested 1,000,000 187,500 Contin
$C$7 Real Estate Loans Amount Invested 1,000,000 2,500,000 Contin
$C$8 Unsecured Loans Amount Invested 1,000,000 1,250,000 Contin
$C$9 Bank FDs Amount Invested 1,000,000 500,000 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$C$10 TOTAL Amount Invested ₹ 5,000,000.00 $C$10=$B$1 Binding 0
$C$5 New Car Loans Amount Invested 562,500 $C$5>=$C$6*3 Binding 0
$D$14 Auto Loans Yield 15.00% $D$14>=0.15 Binding 0.00%
$E$8 Unsecured Loans Pct. of Portfolio 25.00% $E$8<=0.25 Binding 0
$E$9 Bank FDs Pct. of Portfolio 10.00% $E$9>=0.1 Binding 0.00%
$C$5 New Car Loans Amount Invested 562,500 $C$5>=0 Not Binding 562,500
$C$6 Used Car Loans Amount Invested 187,500 $C$6>=0 Not Binding 187,500
$C$7 Real Estate Loans Amount Invested 2,500,000 $C$7>=0 Not Binding 2,500,000
$C$8 Unsecured Loans Amount Invested 1,250,000 $C$8>=0 Not Binding 1,250,000
$C$9 Bank FDs Amount Invested 500,000 $C$9>=0 Not Binding 500,000
nteger Constraints