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Linear Programming Using Excel Solver

This document discusses linear programming and how to solve linear programming problems using Excel Solver. It provides definitions of key Excel and linear programming terms. It then walks through an example linear programming problem step-by-step to demonstrate how to set up and solve the problem using Excel Solver. The example maximizes profit for a manufacturing company producing two products given constraints on available resources. It shows how to enter the data, activate and set parameters for Solver, obtain the optimal solution, and perform sensitivity analysis on the solution.

Uploaded by

S.h. Fahad Fiaz
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367 views27 pages

Linear Programming Using Excel Solver

This document discusses linear programming and how to solve linear programming problems using Excel Solver. It provides definitions of key Excel and linear programming terms. It then walks through an example linear programming problem step-by-step to demonstrate how to set up and solve the problem using Excel Solver. The example maximizes profit for a manufacturing company producing two products given constraints on available resources. It shows how to enter the data, activate and set parameters for Solver, obtain the optimal solution, and perform sensitivity analysis on the solution.

Uploaded by

S.h. Fahad Fiaz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 27

ADVANCED

OPERATIONS
RESEARCH

A OR

LINEAR PROGRAMMING USING EXCEL


SOLVER
By: HakeemUrRehman
1
IQTMPU

LINEAR PROGRAMMING USING EXCEL


SOLVER
Excel Lingo
On the toolbar at the bottom of the screen, click on:
Start All Programs Microsoft Office Microsoft Office Excel 2007
Spreadsheet: A two-dimensional array of rectangles.
Cell: Each rectangle in excel (Four types of information can be typed
into a cell: Number, Fraction, Function, and Text.) It is identified by its
column and row location on the spreadsheet, which are designated by
letter and numbers, respectively (i.e. cell A1).
SUMPRODUCT: A function that first multiplies the numbers in n
consecutive cells (i.e. A1 through E1) by the numbers in another set of
n consecutive cells (i.e. A5 through E5), respectively, then takes the
sum of the n number of products (i.e. A1*A5 + B1*B5 + C1*C5 + D1*D5
+ E1*E5), and finally deposits that sum in the cell you have selected
(i.e. F1).
Cell reference: Lets you repeat patterns of information between cells,
which occurs a selected cell refers to information typed in another cell.
Absolute reference: A cell that always refers to the originally
referred cell; if the location of the selected cell changes, the referred
cell will not change. It includes a $ sign before the cells column
(i.e. $A1), row (i.e. A$1), or both (i.e. $A$1).
Relative reference: A cell that initially refers to the originally
selected cell; if the location of the selected cell changes, the referred
2
cell will change and the location of the new referred
cell will reflect
the location change of the selected cell. It omits the $ sign (i.e. A1).

LINEAR PROGRAMMING USING EXCEL


SOLVER

How to activate Solver:

LINEAR PROGRAMMING USING EXCEL


SOLVER
Solver can find a solution to:

Systems of equations
Inequalities
Optimization problems
Linear programs***
Integer programs
Nonlinear programs

EXAMPLE

XYZ manufacturing company has a division that produces two


models of grates, modelA and modelB. To produce each modelA
grate requires 3 g. of cast iron and 6 minutes of labor. To produce
each modelB grate requires 4 g. of cast iron and 3 minutes of
labor. The profit for each modelA grate is Rs.2 and the profit for
each modelB grate is Rs.1.50. One thousand g. of cast iron and 20
hours of labor are available for grate production each day. Because
of an excess inventory of modelA grates, Companys manager has
decided to limit the production of modelA grates to no more than
180 grates per day.
Solve the given LP problem and perform sensitivity analysis.
LP MODEL: Let X1 and X2 be the number of modelA and modelB
grates respectively.
The complete LP model is as follow:
Maximum: Z = 2X1 + 1.5X2 2X1 + (3/2)X2
Subject to:
3X1 + 4X2 1000 (Cast Iron Constraint)
6X1 + 3X2 1200 (Labor Hour Constraint)
X1
180 (Production limit of Model-A Constraint)
5
X1, X2 0

LINEAR PROGRAMMING USING EXCEL


SOLVER
STEP I: ENTER THE DATA & FUNCTION

Cell I8: Enter:


=SUMPRODUCT($G$6:$H$6,G8:
H8)
Drag to cells G11:H11

LINEAR PROGRAMMING USING EXCEL

II:
RECORD
THE
SOLVERSOLVER

STEP
PARAMETERS

LINEAR PROGRAMMING USING EXCEL


SOLVER
STEP II: RECORD THE SOLVER PARAMETERS
(Cont)

The Solver Parameters dialog


box:
Buttons
WINDOWS
Set Target Cell
window: Identifies the cell
that Solver will use to
record the optimal z-value
for the problem.
By Changing Cells
window: Identifies the
cells that Solver will use to
record the optimal solution
for the decision variables.
Subject to the
Constraints window:
Identifies the nonnegativity constraints and
the constraints given by
the problem.

Options button:
Identifies the type of
optimization problem;
remember to check off the
Assume Linear Model
option.
Add button: Used to
insert the constraints;
identified constraints are
displayed in the Subject
to the Constraints
window.
Solve button: Used to
determine the optimal
value for the objective z
and the decision variables.
8

LINEAR PROGRAMMING USING EXCEL


SOLVER
STEP II: RECORD THE SOLVER PARAMETERS
(Cont)

SET TARGET CELL:

With the CURSOR in the


Set Target Cell Box:
Click on Cell I8

LINEAR PROGRAMMING USING EXCEL


SOLVER
STEP II: RECORD THE SOLVER PARAMETERS
(Cont)

EQUAL
TO:
LEAVE THE BUTTON
FOR Max
HIGHLIGHTED

LINEAR PROGRAMMING USING EXCEL


SOLVER
STEP II: RECORD THE SOLVER PARAMETERS
(Cont)

BY
CHANGING
CELLS:
WITH
THE
CELLS
CELLS

THE CURSOR IN
BY
CHANGING
BOX: HIGHLIGHT
G6 & H6

LINEAR PROGRAMMING USING EXCEL


SOLVER
STEP II: RECORD THE SOLVER PARAMETERS
(Cont)
SUBJECT
TO
CONSTRAINTS:
In
the
Solver
Parameters dialog
box, click on the
Add button.
Fill in the Cell
Reference
and
Constraint
windows by clicking
on the changing
cells
and
the
function cells.
Click on the OK
button after adding
each constraint.

THE

LINEAR PROGRAMMING USING EXCEL


SOLVER
STEP II: RECORD THE SOLVER PARAMETERS
(Cont)
SUBJECT
(Cont):

TO

THE

CONSTRAINTS

With the cursor in the cell reference box: highlight cells I9


through I11. Leave the direction as . With the cursor in
the constraint box: : highlight cells K9 through K11.
If more constraints were to be added, click Add and follow
the same procedure.

LINEAR PROGRAMMING USING EXCEL


SOLVER
STEP II: RECORD THE SOLVER PARAMETERS
(Cont)
OPTIONS
:

LINEAR PROGRAMMING USING EXCEL


SOLVER
STEP II: RECORD THE SOLVER PARAMETERS
(Cont)
SOLVE:

LINEAR PROGRAMMING USING EXCEL


SOLVER
STEP II: RECORD THE SOLVER PARAMETERS
(Cont)
REPORT:

LINEAR PROGRAMMING USING EXCEL


SOLVER

Analyzing the Excel Spreadsheet

LINEAR PROGRAMMING USING EXCEL


SOLVER

THE ANSWER REPROT

LINEAR PROGRAMMING USING EXCEL


SOLVER

THE SENSITIVITY REPROT

Range of Optimality
Changing the profit coefficient of the objective
function
Will the original optimal solution still be
optimal?
Range of Optimality?
Profit coefficient for X1
2, range of optimality (2 + 1, 2 0.875) = (3,
1.125)
Profit coefficient for X2

LINEAR PROGRAMMING USING EXCEL


SOLVER
THE
REPROT

SENSITIVITY

Changing the RHS CAST IRONS


Binding Constraints
3X1 + 4X2 1000 (Cast Irons Constraint)
3(120) + 4 (160) = 1000

Suppose we increase one gram Cast Iron, whats the


impact on the optimal profit?
The unit change in the objective function is the shadow
price of the resource.
Shadow price of Cast Iron Gram = 0.2
Range of Feasibility: (1000 + 600, 1000 300) =
(1600, 700)

LINEAR PROGRAMMING USING EXCEL


SOLVER

THE SENSITIVITY REPROT

Changing the RHS LABOUR HOUR


Binding Constraints
6X1 + 3X2 1200 (Labor Hours Const.)
6(120) + 3(160) = 1200
Suppose we increase one Labour hour, whats the
impact on the optimal profit?
The unit change in the objective function is the shadow
price of the resource.
Shadow price of Labour Hour = 0.23333
Range of Feasibility: (1200 + 225, 1000 450) =
(1425, 550)

LINEAR PROGRAMMING USING EXCEL


SOLVER

THE SENSITIVITY REPROT

Changing the RHS LABOUR HOUR


NONBinding Constraints
X1
180 (Model-A Production Cont.)
Optimum: 120 + 0 = 120 (ModelA Grates)
We have 60 excessive ModelA Grates (slack)
Increasing the Grates?
Decreasing the Grates?
Shadow price of ModelA = 0
Range of Feasibility: (180 + , 180 60) = (, 120)

EXAMPLE: PRODUCTION
Cool-bike Industries manufactures boys and girls bicycles in bothSCHEDULING
20-inch and 26-inch models.
Each week it must produce at least 200 girl models and 200 boy models. The following table
gives the unit profit and the number of minutes required for production and assembly for each
model.
Bicycle
Unit Profit
Production Minutes
Assembly Minutes
20-inches girls

$27

12

20-inches boys

$32

12

26-inches girls

$38

12

26-inches boys

$51

18

The Production and assembly areas run two (eight-hour) shifts per day, five days per week. This
week there are 500 tires available for 20-inch models and 800 tires available for 26-inch models.
Determine Cool-bikes optimal schedule for the week. What profit will it realize for the week?

X11 = Number of 20-inch girls bicycles produced this week; X22 = Number of 20-inch boys
bicycles produced this week; X33 = Number of 26-inch girls bicycles produced this week; X44
= Number of 26-inch boys bicycles produced this week

MAX 27X11 + 32X22 + 38X33 + 51X44


S.T.
X11
+
X33

200 (Min girls models)


X22
+
X44
200 (Min boys models)
12X11 + 12X22 + 9X33 + 9X44 4800 (Production minutes)
6X11 + 9X22 + 12X33 + 18X44 4800 (Assembly minutes)
2X11 + 2X22

500 (20-inch tires)


2X33 + 2X44

800 (26-inch tires)


23
All X's 0

EXAMPLE: PRODUCTION SCHEDULING


(Cont)
= Number of 20-inch girls bicycles produced this week; X = Number of 20-inch boys

X11
2
2
bicycles produced this week; X33 = Number of 26-inch girls bicycles produced this week; X44
= Number of 26-inch boys bicycles produced this week

MAX 27X11 + 32X22 + 38X33 + 51X44


S.T.
X11
+
X33

200 (Min girls models)


X22
+
X44
200 (Min boys models)
12X11 + 12X22 + 9X33 + 9X44 4800 (Production minutes)
6X11 + 9X22 + 12X33 + 18X44 4800 (Assembly minutes)
2X11 + 2X22

500 (20-inch tires)


2X33 + 2X44

800 (26-inch tires)


All X's 0

24

EXAMPLE: PRODUCTION SCHEDULING


(Cont)
+ 38X + 51X

MAX 27X11 + 32X22


3
4
3
4
S.T.
X11
+
X33

200 (Min girls models)


X22
+
X44
200 (Min boys models)
12X11 + 12X22 + 9X33 + 9X44 4800 (Production minutes)
6X11 + 9X22 + 12X33 + 18X44
4800 (Assembly minutes)
2X11 + 2X22

500 (20-inch tires)


2X33 + 2X44

800 (26-inch tires)


All X's 0

25

EXAMPLE: PRODUCTION SCHEDULING


(Cont)
+ 38X + 51X

MAX 27X11 + 32X22


3
4
3
4
S.T.
X11
+
X33

200 (Min girls models)


X22
+
X44
200 (Min boys models)
12X11 + 12X22 + 9X33 + 9X44 4800 (Production minutes)
6X11 + 9X22 + 12X33 + 18X44
4800 (Assembly minutes)
2X11 + 2X22

500 (20-inch tires)


2X33 + 2X44

800 (26-inch tires)


All X's 0

26

QUESTIONS

27

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