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Cell Name Original Value Final Value

The document contains the results of an optimization model solved in Microsoft Excel that examines the optimal location for factories in Los Angeles (LA) and San Francisco (SF). The model maximizes net present value (NPV) by choosing between establishing a factory in LA, SF, or both. The optimal solution opens a factory in SF, achieving a maximum NPV of $13 million. A one-way sensitivity analysis shows that an investment greater than $10 million is required to justify opening factories in both locations.

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Binoy Parekh
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0% found this document useful (0 votes)
66 views

Cell Name Original Value Final Value

The document contains the results of an optimization model solved in Microsoft Excel that examines the optimal location for factories in Los Angeles (LA) and San Francisco (SF). The model maximizes net present value (NPV) by choosing between establishing a factory in LA, SF, or both. The optimal solution opens a factory in SF, achieving a maximum NPV of $13 million. A one-way sensitivity analysis shows that an investment greater than $10 million is required to justify opening factories in both locations.

Uploaded by

Binoy Parekh
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Microsoft Excel 12.

0 Answer Report
Worksheet: [Book1]Sheet1
Report Created: 21-11-2010 16:12:39

Target Cell (Min)


Cell Name Original Value Final Value
$C$12 Minimum Cost A 0 13.0625

Adjustable Cells
Cell Name Original Value Final Value
$C$9 Formulation A 0 10.25
$D$9 Formulation B 0 0
$E$9 Formulation C 0 4.125
$F$9 Formulation D 0 21.625

Constraints
Cell Name Cell Value Formula Status Slack
$G$5 X Used 280 $G$5>=$I$5 Binding 0
$G$6 Y Used 205.75 $G$6>=$I$6 Not Binding 5.75
$G$8 Used 36 $G$8>=$I$8 Binding 0
$G$7 Z Used 1050 $G$7<=$I$7 Binding 0
Microsoft Excel 12.0 Sensitivity Report
Worksheet: [Book1]Sheet1
Report Created: 21-11-2010 16:12:39

Adjustable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$9 Formulation A 10.25 0 0.4 0.0611111111 0.25
$D$9 Formulation B 0 0.06875 0.2 1E+030 0.06875
$E$9 Formulation C 4.125 0 0.6 1.5 0.0733333333
$F$9 Formulation D 21.625 0 0.3 0.0846153846 1E+030

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$G$5 X Used 280 0.0875 280 41 11
$G$6 Y Used 205.75 0 200 5.75 1E+030
$G$8 Used 36 0.375 36 16.5 1.2777777778
$G$7 Z Used 1050 -0.02375 1050 47.142857143 346
Burn Off

Ingedriant
Chemicals A B C D Used Requirement
X 3 4 8 10 280 >= 280
Y 5 3 6 6 205.75 >= 200
Z 10 25 20 40 1050 <= 1050
1 1 1 1 36 >= 36
Formulation 10.25 0 4.125 21.625
Cost/Ounce ($) 0.4 0.2 0.6 0.3

Minimum Cost 13.0625

Ans 1 Reduced cost of 0.07 indicates that one ounce of B will increase the cost by $0.07 i.e from 13.06 t
Ans 2 Ingedrient C is sensitive to price changes, but the range in which the prices can remain same is $5
the cost by $0.07 i.e from 13.06 to 13.13.
h the prices can remain same is $5.93 to $ 2.1, beyond which we may have change
Simple NLP Wyndor

Door Window Utilised Avalaible


1 1 0 3 <= 4
Plant 2 0 2 8 <= 12
3 3 2 18 <= 18
GP/Unit 375 700
Production 3 4 Total
Gross Profit 1205 2925 4130
Marketing Cost 258 1164 1422

Maximum Profit 2708


NLP with OT

Door Window Utilised Avalaible


1 1 0 4 <= 4
Plant 2 0 2 6 <= 12
3 3 2 18 <= 18

Regular 300 500


Profit Overtime 200 100
Maximum OT
Regular 3 3 <= 3 3
Production Overtime 1 0 <= 1 3

Production 4 3

Total profit 2600


BIP wyndor

Door Window Utilised Avalaible


1 1 0 0 <= 4
Plant 2 0 2 0 <= 12
3 3 2 0 <= 18

Unit Profit 300 500


Set up cost 700 1300

Units Produced 0 0
<= <= Gross 0
Only if setup 0 0 Set up cost 0
Setup 0 0 NP 0
Microsoft Excel 12.0 Answer Report
Worksheet: [practice.xlsx]California
Report Created: 21-11-2010 19:35:08

Target Cell (Max)


Cell Name Original Value Final Value
$G$9 Max NPV SF 0 13

Adjustable Cells
Cell Name Original Value Final Value
$F$7 Factory LA 0 1
$G$7 Factory SF 0 1
$I$7 >= LA 0 0
$J$7 >= SF 0 0

Constraints
Cell Name Cell Value Formula Status Slack
$F$11 Warehouse Max NPV 9 $F$11<=$H$11 Not Binding 1
$F$7 Factory LA 1 $F$7>=$I$7 Not Binding 1
$G$7 Factory SF 1 $G$7>=$J$7 Not Binding 1
$F$7 Factory LA 1 $F$7=binary Binding 0
$G$7 Factory SF 1 $G$7=binary Binding 0
$I$7 >= LA 0 $I$7=binary Binding 0
$J$7 >= SF 0 $J$7=binary Binding 0
Page 221

Binary
Factory
LA SF LA SF
Factory 8 5 1 1 >=
NPV
Warehouse 6 4
Max NPV 13
Factory 6 3
Investment
Warehouse 5 2 9 <= 10

Factory
Investment NPV LA SF
5 9 1.32494E-11 1
6 9 0 1
7 9 0 1
8 9 0 1
9 13 1 1
10 13 1 1
11 17 1 1
12 17 1 1
13 17 1 1
14 19 1 1
15 19 1 1
Warehouse
LA SF
0 0

Warehouse
LA SF
0 1
0 1
0 1
0 1
0 2.243E-11
0 0
1.514E-11 1
0 1
0 1
1 1.715E-11
1 0
Oneway analysis for Solver model in California worksheet

Input (cell $H$11) values along side, output cell(s) along top

$G$9

$G$7
$F$7

$J$7
$I$7
5 9 1.32494E-11 1 0 1
6 9 0 1 0 1
7 9 0 1 0 1
8 9 0 1 0 1
9 13 1 1 0 2.242517E-11
10 13 1 1 0 0
11 17 1 1 1.514322E-11 1
12 17 1 1 0 1
13 17 1 1 0 1
14 19 1 1 1 1.714895E-11
15 19 1 1 1 0
Sensitivity of $G$9 to Input

Data for chart

$G$9
When you select an output from the
1 dropdown list in cell $K$4, the chart
9 will adapt to that output.
9
9
9
13
13
17
17
17
19
19

Sensitivity of $G$9 to Input


20
18
16
14
12
10
8
6
4
2
0
5 6 7 8 9 10 11 12 13 14 15
Input ($H$11)
Blending Model Page 811

Gasoline CrudeOil

Crude 1 0 0 0 <= 5000


Crude 2 0 0 0 <= 10000
SOLD 0 0

Cost/Profit
Selling Price 25 20 GP 0
Marketing 0.2 0.1 MC 0
NP 0
Quality Level
Crude 1 10
Crude 2 5

Quality Level
Achieved 0 0
<= <=
Expected 8 6
NLP Model
Profit
X 5 >= 0
<= 5

x^5 x^4 x^3 x^2 x^1


Coefficient 0.5 -6 24.5 -39 20
Values 1562.5 -3750 3062.5 -975 100

Profit 0
X Profit
0 0
0.371013 3.19
1 0
2 0
3 6
4 0
5 0
Oneway analysis for Solver model in Sheet10 worksheet

Input (cell $C$5) values along side, output cell(s) along top

$C$13
1
0 3.192933
1 3.192933
2 6.128323
3 6.128323
4 6.128323
5 0

7
6
5
4
3
2
1
0
0
Sensitivity of $C$13 to Input

Data for chart


$C$13
When you select an output from the
dropdown list in cell $K$4, the chart
will adapt to that output.
3.192933
3.192933
6.128323
6.128323
6.128323
0

Sensitivity of $C$13 to Input


7
6
5
4
3
2
1
0
0 1 2 3 4 5
Input ($C$5)
Stock
Stock 1 2 3
1 0.04 -0.005
2 -0.01
3

Risk Deviation 25% 45% 5%


Returns 21% 30% 8%
Stock Portfolio 0 0 0 0= 100
Returns Achieved 0 >= 18

Risk Deviation 0
Microsoft Excel 12.0 Sensitivity Report
Worksheet: [practice.xlsx]Thermolock Page 283
Report Created: 11/21/2010 22:36:01 PM

Target Cell (Min)


Cell Name Final Value
$C$10 Mimimum Cost R^3 119.33253259

Adjustable Cells
Final Reduced
Cell Name Value Gradient
$C$3 Used Rubber 3.3253258928 0
$D$3 Used Oil 14.672271875 0

Constraints
Final Lagrange
Cell Name Value Multiplier
$H$6 136.01218184 0
$H$7 79.999999635 0.00216575
$H$8 17 7
Rubber Oil
Minimize 5 7
Used 3.325326 14.67227
Subject to
R^3 R^2 R O^2 O
0.25 3 0.3 4 136.0122 >=
1 13 80 >=
0.7 1 17 >=

Mimimum Cost 119.3325


125 Hardness
80 Tensile
17 Elasticity
Goal Prog
Total Invest 80000
US Oil Hub Amt Over Amt Under
price Share 25 50
return 3 5 0 >= 9000 0 0 0
risk index 0.5 0.3 0 <= 700 0 0 0
Number Of shares 0 0
Portfolio 0 <= 80000
level

= 9000
= 700
Time to service Revenue
Existing E 2 200
New N 3 125

Goals 1 600 work hrs


2 680 work hrs
3 Rs 70000 Revenue
4 Min 200 E
5 Min 120 N
Allocation 0 0 0 0 0 0 0
E N G1 + G1- G2+ G2- G3+
Goal 1 2 3 -1 1
Goal 2 2 3 -1 1
Goal 3 200 125 -1
Goal 4 1
Goal 5 1

Mimimze 1 0
0 0 0 0 0
G3- G4+ G4- G5+ G5-
0= 680
0= 600
1 0= 70000
1 1 0= 200
1 1 0= 120
1 2 3 4 5 6 7
Cost ($thousands) 2 3 4 6 7 5 7

Includes Segment?
SFO-LAX 1 0 0 1 0 0 1
SFO-DEN 0 1 0 0 1 0 0
SFO-SEA 0 0 1 0 0 1 0
LAX-ORD 0 0 0 1 0 0 1
LAX-SFO 1 0 0 0 0 1 0
ORD-DEN 0 0 0 1 1 0 0
ORD-SEA 0 0 0 0 0 0 1
DEN-SFO 0 1 0 1 1 0 0
DEN-ORD 0 0 0 0 1 0 0
SEA-SFO 0 0 1 0 0 0 1
SEA-LAX 0 0 0 0 0 1 0

1 2 3 4 5 6 7
Fly Sequence? 0 0 1 1 0 0 0
8 9 10 11 12
8 9 9 8 9 At
Least
Total One
0 0 1 0 0 1 >= 1
1 0 0 1 0 1 >= 1
0 1 0 0 1 1 >= 1
0 1 1 0 1 1 >= 1
0 0 1 1 0 1 >= 1
0 1 0 0 0 1 >= 1
1 0 1 1 1 1 >= 1
0 1 0 0 0 1 >= 1
1 0 0 1 0 1 >= 1
1 0 0 0 1 1 >= 1
0 1 1 1 1 1 >= 1

Total Number
8 9 10 11 12 Sequences of Crews
0 0 0 1 0 3 <= 3

Total Cost ($thousands) 18


Oneway analysis for Solver model in Sheet1 worksheet

Input (cell $Q$20) values along side, output cell(s) along top

$Q$22

8
3 18 1 0 0 0 1 0 0 0
4 18 0 0 1 1 0 0 0 0
5 18 1 0 0 0 1 0 0 0
6 18 0 0 1 1 0 0 0 0
Sensitivity of $Q$22 to Input

Data for chart

$Q$22
When you select an output from the
dropdown list in cell $P$4, the chart
10

11

12
1 will adapt to that output.
9

0 0 0 1 18
0 0 1 0 18
0 0 0 1 18
0 0 1 0 18

Sensitivity of $Q$22 to Input


20
18
16
14
12
10
8
6
4
2
0
3 4 5
Input ($Q$20)
n output from the
ll $P$4, the chart
utput.

$Q$22 to Input

5 6
($Q$20)
Microsoft Excel 12.0 Answer Report
Worksheet: [practice.xlsx]Blending
Report Created: 22-11-2010 03:18:23

Target Cell (Max)


Cell Name Original Value Final Value
$C$27 Revenue >= $0 $325,000

Adjustable Cells
Cell Name Original Value Final Value
$C$16 Crude oil 1 Gasoline 0 3000
$D$16 Crude oil 1 Heating oil 0 2000
$C$17 Crude oil 2 Gasoline 0 2000
$D$17 Crude oil 2 Heating oil 0 8000

Constraints
Cell Name Cell Value Formula Status Slack
$C$22 Quality points obtained Gasoline 40000 $C$22>=$C$24 Binding 0
$D$22 Quality points obtained Heating oil 60000 $D$22>=$D$24 Binding 0
$E$16 Crude oil 1 Barrels used 5000 $E$16<=$G$16 Binding 0
$E$17 Crude oil 2 Barrels used 10000 $E$17<=$G$17 Binding 0
$C$16 Crude oil 1 Gasoline 3000 $C$16=integer Binding 0
$D$16 Crude oil 1 Heating oil 2000 $D$16=integer Binding 0
$C$17 Crude oil 2 Gasoline 2000 $C$17=integer Binding 0
$D$17 Crude oil 2 Heating oil 8000 $D$17=integer Binding 0
Monetary inputs Gasoline Heating oil
Selling price/barrel $25.00 $20.00

Quality level per barrel of crudes


Crude oil 1 10
Crude oil 2 5

Required quality level per barrel of product


Gasoline Heating oil
8 6

Blending plan (barrels of crudes in each product)


Gasoline Heating oilarrels used Barrels available
Crude oil 1 3000 2000 5000 <= 5000
Crude oil 2 2000 8000 10000 <= 10000
Barrels sold 5000 10000

Constraints on quality
Gasoline Heating oil

Quality points obtained


40000 60000
>= >=

Quality points required


40000 60000

Objective to maximize
Revenue $325,000

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