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LPP by Using Excell Solver Tool

The document outlines a linear programming problem involving a furniture manufacturer producing chairs and tables to maximize profits. It details the formulation of the problem, constraints based on machine time, and the steps to use Excel Solver to find the optimal production schedule. The final solution indicates that the manufacturer can achieve a maximum profit of ₹ 330 by producing 3 chairs and 9 tables per week.

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amarnath6046
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4 views8 pages

LPP by Using Excell Solver Tool

The document outlines a linear programming problem involving a furniture manufacturer producing chairs and tables to maximize profits. It details the formulation of the problem, constraints based on machine time, and the steps to use Excel Solver to find the optimal production schedule. The final solution indicates that the manufacturer can achieve a maximum profit of ₹ 330 by producing 3 chairs and 9 tables per week.

Uploaded by

amarnath6046
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Linear Programming through Excel Solver

Before moving on to excel solver, we need to have detailed question. Therefore, we


start with the following problem:
A firm makes two types of furniture’s, chairs and tables. Profits are ₹ 20 per chair
and ₹ 30 per table. Both products are processed on three machines M1, M2 and M3.
The time required for each product in hours and total time available in hours per
week on each machine are as follows:
Machine Chair Table Available Time
M1 3 3 36
M2 5 2 50
M3 2 6 60
How should the manufacturer schedule his production in order to maximize profit?

STEP 1: Formulate the problem:


Let x and y be the number of chairs and table to be produced per week respectively
Maximize Z= 20x +30y
Subject to constraints:
3x+3y <= 36
5x+2y <= 50
2x+ 6y <= 60
x, y >= 0 (Non-negativity constraint)
STEP 2: Now enter all this information to excel spreadsheet in the below format.

STEP 3: NEXT, enter the formula in the cell D3 and D6 to D8.

Enter the formula in D3 to calculate total profit using SUMPRODUCT formula (i.e.
multiplying profit per unit into quantity of specific furniture and then adding it)
Similarly enter the formula in D6 to D8 using SUMPRODUCT formula to calculate
capacity utilised of each machine

STEP 4: To load the solver add-in, execute the following steps.


a. Go to the File tab then, under File tab click on “Options”.
b. Go to Add-ins under Excel Options.

c. Under this select “Excel Add-ins” and click on Go.


d. Under below pop up choose “Solver Add-in” and click on “Ok” to enable it.

e. Now we can see “Solver Add-in” under the DATA tab.


STEP 5: Solve Linear Programming through Excel Solver
To apply solver go to the DATA tab and click on “Solver” we will see below
window.

➢ In the above window, our first option is “Set Objective”.


Our objective is to identify the “Total Profit”, so our Total Profit cell is D3,
so select the cell D3 for this “Set Objective” and set it to “Max”.
➢ Next option is “By changing variables”, in this problem, our variables are
“Chairs” and “Tables”. To select a range of cell B2:C2.

➢ Now, the next option “subject to the constraints”, Once you click on “Add”
we will see below add constraint window.

➢ Click on “Add” to stay back in the same window. Now in the second
constraint select the value as D7 and select “<=” and under constraint select
G7 cell.
Similarly, for the third constraint select the value as D8 and select “<=” and
under constraint select G8 cell.
➢ After adding all constraints, Click on “Ok” to come out of Add Constraint
window. Constraints are added like below. Now our all parameters are ready.

➢ Now tick check box for non-negative constraints and select “Simplex LP” as
solving method from the drop down. Finally, Click on Solve.

➢ Finally, the answers will appear on the screen as you can see in the shaded
cells below.
Click Ok, to save the solution.
STEP 5: Write the final solution.
As per the given solution, firm can have maximum profit of ₹ 330 by producing 3
chairs and 9 tables per week.

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