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TAM4

The document describes a linear programming problem to determine the optimal product mix to maximize profits given constraints on available resources. The objective is to maximize total profits from producing two products, with constraints on available labor hours, chip sets, and electronic components. The solution provided by the solver is also presented.

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John Lloyd De Guzman
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23 views

TAM4

The document describes a linear programming problem to determine the optimal product mix to maximize profits given constraints on available resources. The objective is to maximize total profits from producing two products, with constraints on available labor hours, chip sets, and electronic components. The solution provided by the solver is also presented.

Uploaded by

John Lloyd De Guzman
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
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Product Mix for Big and Small Model Tables Explanation:

Upon using the solver for a linea


Pro Mini 1. An objective, whether you wa
Number to make 0 0 a max profit that your product c
2. Input variables, this can be res
Required Inputs Used Available 3. Decision variables, usually ind
Labor Hours 6 9 0 <= 7,000 about resources or assets this an
Chip Sets 1 1 0 <= 1,000 4. Constraints, if somehow you m
Electronic Components 15 10 0 <= 14,000 the problem completely.

Total Profit
Unit Profit 182 139 0

Find the product mix that maximizes profit


with the constraints of:
Max: 182 + 139 Mini
Subject to:
6Big + 9Small <= 7,000
1Big + 1Small <= 1,000
15Big + 10Small <= 14,000
Big >= 0
Small >= 0
Explanation:
Upon using the solver for a linear programming problem you have to have:
1. An objective, whether you want your total profit to be an exact "x" amount or if you want to have
a max profit that your product can produce or even the minimum amount this is made easy by solver.
2. Input variables, this can be resources that you used to make a finished products or even profits.
3. Decision variables, usually indicates on how many are you going to make or when you are talking
about resources or assets this answers the how to allocate.
4. Constraints, if somehow you miss one of the constraints this will mostlikely result of you not solving
the problem completely.
Microsoft Excel 16.0 Answer Report
Worksheet: [Book1]Sheet1
Report Created: 06/28/2022 10:45:16 pm
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0.015 Seconds.
Iterations: 2 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
$F$12Unit Profit Total Profit 173400 173400

Variable Cells
Cell Name Original Value Final Value Integer
$D$4 Number to make Pro 800 800 Contin
$E$4 Number to make Mini 200 200 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$F$7 Labor Hours Used 6600 $F$7<=$H$7 Not Binding 400
$F$8 Chip Sets Used 1000 $F$8<=$H$8 Binding 0
$F$9 Electronic Components Used 14000 $F$9<=$H$9 Binding 0
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [Book1]Sheet1
Report Created: 06/28/2022 10:45:16 pm

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$D$4 Number to make Pro 800 0 182 26.5 43
$E$4 Number to make Mini 200 0 139 43 17.66666667

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$F$7 Labor Hours Used 6600 0 7000 1E+030 400
$F$8 Chip Sets Used 1000 53 1000 26.66666667 66.66666667
$F$9 Electronic Components Used 14000 8.6 14000 1000 666.6666667
Microsoft Excel 16.0 Limits Report
Worksheet: [Book1]Sheet1
Report Created: 06/28/2022 10:45:16 pm

Objective
Cell Name Value
$F$12 Unit Profit Total Profit 173400

Variable Lower Objective Upper Objective


Cell Name Value Limit Result Limit Result
$D$4 Number to make Pro 800 0 27800 800 173400
$E$4 Number to make Mini 200 0 145600 200 173400

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