Scribd
Upload
61 views

Solving Linear Programs Using Excel: Dr. Ron Lembke

1. The document describes how to formulate a linear program in Excel by writing out the model, objective function, and constraints and inputting the coefficients into cells. 2. It explains how to use the Solver tool to solve the linear program by selecting it from the menu, specifying the objective cell and variable cells, and adding the constraint equations. 3. The optimal solution found by Solver is analyzed using reports that display the optimal objective value, variable values, shadow prices, and ranges that the objective remains optimal over as coefficients and right-hand sides are varied.

Uploaded by

Mrinal Agarwal
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
61 views

Solving Linear Programs Using Excel: Dr. Ron Lembke

1. The document describes how to formulate a linear program in Excel by writing out the model, objective function, and constraints and inputting the coefficients into cells. 2. It explains how to use the Solver tool to solve the linear program by selecting it from the menu, specifying the objective cell and variable cells, and adding the constraint equations. 3. The optimal solution found by Solver is analyzed using reports that display the optimal objective value, variable values, shadow prices, and ranges that the objective remains optimal over as coefficients and right-hand sides are varied.

Uploaded by

Mrinal Agarwal
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 35

Dr.

Ron Lembke

SOLVING LINEAR PROGRAMS


USING EXCEL

Formulating in Excel
1.
2.
3.
4.

Write the LP out on paper, with all


constraints and the objective function.
Decide on cells to represent variables.
Enter coefficients of each variable in
each constraint in a block of cells.
Compute amount of each constraint
being used by current solution.

Formulating in Excel
5. Place inequalities in sheet, so you
remember <=, >=
6. Enter amount of each constraint
7. Enter objective coefficients
8. Calculate value of objective function
9. Make sure you have plenty of labels.
10. Widen columns for readability.

Standard Form
Max7x1 + 5x2
s.t. 4x1 + 3x2 <=
2x1 + 1x2 <=
x1

>=

x2 >=

240 electronics
100 assembly

Formulating in Excel
Current
value of
variables

Constraint
coefficients

Formulating in Excel
Amount of
each
constraint
used
by current
solution

Formulating in Excel
Objective
Function
Value

Objective Function
Coefficients

RHS of constraints,
Inequality signs.

Fancy What If Tool


Trial and error
Simplifies the math
Cant solve it for us

Solving in Excel
All we have so far is a big what if tool. We
need to tell the LP Solver that this is an
LP that it can solve.
Choose Solver from Tools menu

Click Data then Solver

If No Solver, Office2010

If No Solver, Office 2007

Solving in Excel
1.
2.
3.

Choose Solver from Data tab


Tell Solver what is the objective function,
and which are variables.
Tell Solver to minimize or maximize

Solver Dialog Box


Set the Target Sell
Tell to minimize or maximize
Where the variables are

Solving in Excel
1.
2.
3.
4.

Choose Solver from Tools menu


Tell Solver what is the objective function, and
which are variables.
Tell Solver to minimize or maximize
Add constraints:

5.

Click Add, enter LHS, RHS, choose inequality


Click Add if you need to do more, or click Ok if this
is the last one.

Add rest of constraints

Add Constraint Dialog Box

Constraints Added

Assuming Linear
6.

You have to tell Solver that the model is


Linear. Click options, and make sure
the Assume Linear Model box is
checked.

Assume Linear

Assuming Linear
6.

7.

You have to tell Solver that the model is Linear.


Click options, and make sure the Assume
Linear Model box is checked.
On this box, checking assume non-negative
means you dont need to actually add the nonnegativity constraints manually.
Solve the LP: Click Solve. Look at Results.

Office 2010

Office 2010 Options


Set maximum time
to look for a solution
OR maximum # of
iterations

Our

problems
should solve quickly

Solution is Found

When a solution has been found, this box comes up.


You can choose between keeping the solution and going
back to your original solution.
Highlight the reports that you want to look at.

Successful Solution

Optimality Conditions?
200

Dead Profits
4000

160
T

2000
0

120

T-shirts

2
Solution #

80

Each time we go to another solution,


Objective value gets better

40
0

50

100
S Sweatshirts

150

200

Optimality Conditions

Simplex method
creates dual
Max

has a min dual,


min has a max dual

Dual and primal


converge to same
value
Solution must be
optimal

Dead Profits
7000
6000
5000
4000
3000
2000
1000
0

Solution #

Answer Report
Gives optimal and initial values of
objective function
Gives optimal and initial values of
variables
Tells amount of slack between LHS and
RHS of each constraint, tells whether
constraint is binding.

Answer Report

Sensitivity Report
Variables:
Final value of each variable
Reduced cost: how much objective
changes if current solution is changed
Objective coefficient (from problem)

Sensitivity Report
Variables:

Allowable increase:
How much the objective coefficient can go up before the optimal
solution changes.

Allowable decrease:
How much the objective coefficient can go down before optimal
solution changes.

Both of these only are accurate for changes made to one


variable at a time. If you change more than one variable,
need to re-solve the LP.
Suppose t-shirts had increase of $5 decrease $10

Solution is optimal if t-shirt profits are between $15-$30

Sensitivity Report
Constraints
Final Value (LHS)
Shadow price: how much objective would
change if RHS increased by 1.0
Allowable

increase, decrease: how wide a range of


values of RHS shadow price is good for.
Also only accurate for changes made to one
constraint at a time
To see the impact of changing more than one
constraint, we just have to re-run the problem

Sensitivity Report

Limits Report
Tells ranges of values over which the
maximum and minimum objective values
can be found.
Rarely useful

Limits Report

Summary
Entered the LP into Excel
Opened Solver, told it how we wanted to
solve the LP
Interpreting results of Solver Reports

Answer

report basic results


Sensitivity how much the situation would
change with different profits per unit, or
amounts of constraints

You might also like