Scribd
Upload
50 views17 pages

ML05-1 LP and Excel Solver

The document discusses operations research techniques including linear programming. It provides an overview of linear programming, its history, components and examples of linear programming models. It also discusses commercial linear programming solvers and using the Excel solver tool.

Uploaded by

alikulova1998
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
50 views17 pages

ML05-1 LP and Excel Solver

The document discusses operations research techniques including linear programming. It provides an overview of linear programming, its history, components and examples of linear programming models. It also discusses commercial linear programming solvers and using the Excel solver tool.

Uploaded by

alikulova1998
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 17

Operations Research

Linear Programming

Excel Solver

Manufacturing Logistics
What is OR ?
• Management Science: 경영과학
• Operations Research, Operational Research: 운용과학

O.R. & Analytics enable


organizations to turn complex
challenges into substantial opportunities
by transforming data into
information, & information into
insights for making better
decisions & improving results.
2
What is OR ?
• Techniques to help efficient decision • Finding the optimal solution or
making using mathematical and approximate solution in complex
statistical models decision problems

• Mainly use mathematical modeling, • Used to solve real-world problems


statistical analysis, optimization that maximize profits,
techniques, etc. performance, and returns, or
minimize losses, risks, and costs.
• Much research in Mathematics,
Industrial engineering, Business • Linear programming
administration • Dynamic
programming
• Can find applications in almost all • Queuing theory
disciplines (computer science, • Analytic
electrical engineering, electronics hierarchical analysis
engineering, chemical engineering, • Combination
materials science, mechanical optimization
engineering, economics, biology, • Simulation
biotechnology, • Network theory
• Game theory
3
OR Techniques
• LP: Linear Program
• IP: Integer Program
• NLP: Nonlinear Program
• Network Opt.: e.g. Tree Search
• Combinatorial Optimization
.
• Algorithm
 Heuristics
 Meta-Heuristics: Genetic algorithm, Simulated annealing algorithm, etc.
 Optimal algorithms
• Stochastic Process
• Queuing theory
• Simulation
• Forecasting
• Game theory

4
Linear Programming

5
What is Linear Programming ?
• Most common technique among
OR techniques

• A type of mathematical
optimization technique

• Technique to optimize linear


objective function while satisfying
linear constraints

6
History of Linear Programming
Leonid Kantorovich George B. Dantzig

• Mathematician & economist in Soviet • American mathematician


Union • Developed Simplex method in 1947
• Founder of Linear Programming
• Use LPs during World War II to minimize
the cost and loss of the army
• Nobel Prize in Economics (1975)
7
Linear Programming Model
A mathematical model that optimizes a linear objective function while
satisfying given linear constraints as a kind of optimization model

Objective function: Maximize Z = 8X1 + 10X2


Nonlinear Constraints: s.t.
8X1 + 10X2 ≤ 480
X1 + X2 ≤ 100
X1, X2 ≥0
Linear

8
Air Container Loading Planning Model

9
Simple Example of Linear Programming Model
• Jun is a child who likes ice cream.
• He is especially fond of Ssangsangba, Babamba, and Worldcorn.
• His euphoria (Utility) is 4 when he eats a Ssangsangba, 3.5 a Babamba, and
8 a Worldcorn.
• Each price is 300 won per a Ssangsangba, 400 won per Babamba, and 500 won
per Worldcorn, and his pocket money is 3,000 won.
Questions: How many of each of ice creams does he has to buy in order to feel
the greatest happiness

Ice cream Variable Euphoria Price (won)


Ssangsangba X1 4 300
Babamba X2 3.5 400
Worldcorn X3 8 500
Pocket money 3000

10
Simple Example of Linear Programming Model
Jun’s euphoria maximization LP model

Maximize 4X1 + 3.5X2 + 8X3 Objective function


subject to: Constraints
300X1 + 400X2 + 500X3 ≤ 3000
X1, X2, X3 ≥ 0, Integer [Integer programming]

The above model is mathematically difficult


Integer Knapsack Model

Ice cream Variable Euphoria Price (won)


Ssangsangba X1 4 300
Babamba X2 3.5 400
Worldcorn X3 8 500
Pocket money 3000

11
Components of Linear Program
Terms Concept
Model/ • Mathematical expressions / expressions of problems to be
Modeling solved
Objective • Function that allow to measure the performance of solutions
function to problems
Decision • Variables that affect the result of the objective function
variable • e.g., Number of ice creams
• A set of limits on which decision variables can have values
Constraints
• e.g., Pocket money 3,000 won
• Constants of constraints and objective functions are called
Parameters parameters of the model
• Determined by the analyst when performing the modeling

12
Commercial Linear Programming Solvers

• Most used
• For professional use
• Vendor: KSTEC

• Nonlinear program
• For professional use
• Vendor: AtWorth

13
Excel Solver : Easy-to-Use Solver

Solver in EXCEL
• Easy to use
• No need of computer
programming skills
• Can be used for business
• Large models cannot be solved

14
Excel Solver
How to Create “Excel Solver” Menu
1) Click

4) Click

3) Click

5) Click

2) Click

16
How to Create “Excel Solver” Menu
2) Click
3) Click
4) Click

1) Click [Excel Solver Dialog]

17

You might also like