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WBS-2-Operations Analytics-W2S2-Optimizing-with-Solver

The document discusses optimizing resource allocation at Zooter Industries using an algebraic model and Excel Solver. It describes converting a verbal problem into decisions, objectives, and constraints. It then shows implementing the model in a spreadsheet and using Solver to find the optimal solution of 840 razors and 450 navajos, maximizing the weekly profit of $198,000. Key optimization concepts like feasible and optimal solutions and objective function values are also covered.

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123 views5 pages

WBS-2-Operations Analytics-W2S2-Optimizing-with-Solver

The document discusses optimizing resource allocation at Zooter Industries using an algebraic model and Excel Solver. It describes converting a verbal problem into decisions, objectives, and constraints. It then shows implementing the model in a spreadsheet and using Solver to find the optimal solution of 840 razors and 450 navajos, maximizing the weekly profit of $198,000. Key optimization concepts like feasible and optimal solutions and objective function values are also covered.

Uploaded by

rpercor
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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Week 2: Making Best Decisions in Settings with Low

Uncertainty

 A resource allocation example: Zooter Industries


 Converting a verbal problem description into an algebraic model:
decisions, objective, constraints

 From an algebraic model to a spreadsheet implementation: optimizing


with Excel Solver

 Matching demand and supply across space: Keystone Dry Goods


Logistics

OPS Analytics MOOC, Week 2, Session 2


Zooter Resource Allocation Problem:
A Complete Model

Maximize 150*R +160*N


subject to
4*R + 5*N ≤ 5610 (frame manufacturing hours)
1.5*R + 2.0*N ≤ 2200 (wheel and deck manufacturing hours)
1.0*R + 0.8*N ≤ 1200 (QA and packaging hours)
R, N = integer
R, N ≥ 0

 We will use Solver to “optimize” this model, i.e., to find the best
combination of values for decision variables R and N

OPS Analytics MOOC, Week 2, Session 2


Solver Optimizer on Various Platforms
 Likely to be a part of standard Excel installation on Windows

 On Mac (see https://support.microsoft.com/en-us/kb/2431349)

– Included on Excel 2016 for Mac


– Included starting with Excel for Mac 2011 Service Pack 1 (version 14.1.0).
– Not included with Excel for Mac 2008, but can be downloaded from
http://www.solver.com/solver-2008-mac

 Google Sheets: available as “add-on”

OPS Analytics MOOC, Week 2, Session 2


Spreadsheet Solution:

 Zooter.xlsx: a file containing the spreadsheet solution with added comments


that express formulas we used

 According to Solver, the best decision is to produce 840 Razors and 450
Navajos in the coming week

 This decision will result in the weekly profit of $198000

OPS Analytics MOOC, Week 2, Session 2


Optimization Concepts
 Solution: a particular choice of values for the decision
variables

 Feasible Solution:
– satisfies all constraints
– R=500, N=500 is feasible
– R=500, N=750 is infeasible

 Objective Function Value (OFV):


– value of objective function for a solution
– OFV = $155000 for R=500, N=500

 Optimal Solution:
– feasible solution whose OFV cannot be improved upon
– R=840, N=450 is optimal for the Zooter model
– in general, there may be more than one optimal solution

OPS Analytics MOOC, Week 2, Session 2

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