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Profit Maximization with Excel Solver

This document summarizes the results of a linear programming optimization problem to maximize profit subject to constraints on plastic, production time, total production, and mix. The optimal solution was found to have x1=320 and x2=360, maximizing profit at 4360. All constraints were satisfied with plastic and production time binding at their limits of 1000 and 2400 respectively.

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123 views6 pages

Profit Maximization with Excel Solver

This document summarizes the results of a linear programming optimization problem to maximize profit subject to constraints on plastic, production time, total production, and mix. The optimal solution was found to have x1=320 and x2=360, maximizing profit at 4360. All constraints were satisfied with plastic and production time binding at their limits of 1000 and 2400 respectively.

Uploaded by

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

Decision Variable x1 x2

Maximize Profit 8 5
Subject to LHS Sign RHS
Plastic 2 1 <= 1000
Productio Time 3 4 <= 2400
Total Production 1 1 <= 700
Mix 1 -1 <= 350

Decision Variable x1 x2
Optimal Values 320 360
LHS Sign RHS
Plastic 1000 <= 1000
Productio Time 2400 <= 2400
Total Production 680 <= 700
Mix -40 <= 350

Profit 4360
Microsoft Excel 15.0 Answer Report
Worksheet: [[Link]]Sheet1
Report Created: 2/19/2018 [Link] PM
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0.015 Seconds.
Iterations: 3 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0.000001, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Max)


Cell Name Original Value Final Value
$C$22 Profit x1 4360 4360

Variable Cells
Cell Name Original Value Final Value Integer
$C$14 Optimal Values x1 320 320 Contin
$D$14 Optimal Values x2 360 360 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$D$16 Plastic LHS 1000 $D$16<=$F$16 Binding 0
$D$17 Productio Time LHS 2400 $D$17<=$F$17 Binding 0
$D$18 Total Production LHS 680 $D$18<=$F$18 Not Binding 20
$D$19 Mix LHS -40 $D$19<=$F$19 Not Binding 390
Microsoft Excel 15.0 Sensitivity Report
Worksheet: [[Link]]Sheet1
Report Created: 2/19/2018 [Link] PM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$14 Optimal Values x1 320 0 8 2 4.25
$D$14 Optimal Values x2 360 0 5 5.666666667 1

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$D$16 Plastic LHS 1000 3.4 1000 100 400 <=
$D$17 Productio Time LHS 2400 0.4 2400 100 650 <=
$D$18 Total Production LHS 680 0 700 1E+030 20 <=
$D$19 Mix LHS -40 0 350 1E+030 390 <=

Since its <= it's slack, if its >= surplus


binding value are those where final value = co
f its >= surplus (final vlaue - constraint RH side)
se where final value = constraint RHS
Microsoft Excel 15.0 Limits Report
Worksheet: [[Link]]Sheet1
Report Created: 2/19/2018 [Link] PM

Objective
Cell Name Value
$C$22 Profit x1 4360

Variable Lower Objective Upper Objective


Cell Name Value Limit Result Limit Result
$C$14 Optimal Values x1 320 0 1800 320 4360
$D$14 Optimal Values x2 360 0 2560 360 4360

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