lppexcelsolver

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    Presented by:Nikhil Verma

    [email protected]

    Linear ProgrammingUsing

    Excel Solver

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    Linear Programming Introduction to LPApplication AreasMethods to Solve

    AdvantagesLimitations

    Software tools to solve LPExcel Solver

    ModelOptimizationSolution

    Agenda

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    Technique for optimization

    Found during Second World War

    Key people

    v Leonid Kantorovich

    v George B. Dantzig (1947)

    v Leonid Khachiyan(1979)v Narendra Karmarkar(1984)

    Introduction

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    Transportation Problem

    Military Applications

    Personnel Assignment Problem

    Other Applications

    Application Areas

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    The Graphical Method

    The Analytical Method

    The Simplex Method

    Different Methods of LinearPro rammin

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    Make the best possible use of availableproductive resources (such as time, labor,machines etc.)

    Highlighting of bottle necks

    Improving quality of decision making

    Avoiding wastage of resources

    Advantages of LinearProgramming

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    Applicable only to problems where theconstraints and objective function are linear

    Factors such as uncertainty, weather conditionsetc. are not taken into consideration.

    There may not be an integer as the solution

    Only one single objective is dealt with while in

    real life situations, problems comes with multi-objectives.

    Parameters are assumed to be constants

    Limitations of LinearProgramming

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    MATLAB - MathworksInc. USA - Vectors andMatrices

    LINGO LindoSystems Inc - linear, nonlinearand integer programming

    EXCEL SOLVER - Frontline Systems, Inc - NoScripting

    Software Tools For LinearProgramming

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    To use a solver, you must build a model thatspecifies:

    The resources to be used, using decisionvariables,

    The limits on resource usage, calledconstraints (Physical, policy, integer, non-negative,bounds etc)

    The measure to optimize, called the objective.

    Cant Model be defined and executed in

    How to Use Excel Solver

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    Our factory is building three products: TV sets, stereos andspeakers. Each product is assembled from parts in inventory,

    and there are five types of parts: chassis, picture tubes, speakercones, power supplies and electronics units. Our goal is toproduce the mix of products that will maximize profits, given theinventory of parts on hand.

    Algebraic Form:Maximize : 75x1 + 50x2 + 35x3 (Profit)Subject to:

    1x1 + 1x2 + 0x3

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    Decision Variablescell A1 forx1, cell A2 forx2 and cell A3 forx3

    Objective Function

    cell A4: =75*A1+50*A2+35*A3

    Constraintscell B1 =1*A1+1*A2+0*A3(Chasis)cell B2 =A1 (Picture tubes)

    cell B3 =2*A1+2*A2+A3 (Speaker cones)cell B4 = A1+A2 (Power supplies)Cell B5 =2*A1+A2+A3 (Electronics)

    In Spreadsheet.

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    Optimization With Solver

    Solver from the Add-Ins tab or the Tools menuStart Using Premium Solver in the Welcome / Help

    dialog

    An empty Solver Parameters dialog should appear,as shown

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    1. Define the objective function click to select Objectivein the outline list in the Solver

    Parameters dialog (when first opened, it is selected bydefault) and click the Addbutton. The Add Objective dialogappear

    we can type a different cell address (or an Excel definedname), or we can click the cell se lector icon at the rightedge of the edit box, which allows us to point and click the

    Optimization With Solver

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    2. select the decision variables To do this, click to selectVariables in the Solver

    Parameters dialog, and click the Add button:

    We can click the cell selector icon to select the cellrange A1:A3, then click OK:

    Optimization With Solver

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    3. Select the constraints non-negativity constraint : shortcut way to do

    this . an Assume Non-Negative. check box in the SolverOptions dialog

    Click to select Constraintsin the Solver Parametersdialog, and click the Add button:

    Optimization With Solver

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    Constraints Contd we want to define the five general constraints in our

    problem

    enter 400 in cell C1, 200 in C2, 800 in C3, 400 in C4, and600 in C5

    Ensure that Constraints in the outline is selected, andclick the Addbutton. Click the cell selector icon next tothe Cell Reference, and select cells B1:B5 (the left handsides). The default relation of

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    Selecting the Solver Engine

    In the Premium Solver products, selecting the Solver engine iseasier: There is a dropdown list of Solver engines available in theSolver Parameters dialog. The default choice is the standard GRGSolver (which, while slower, is fully capable of solving linear aswell as nonlinear problems).

    Optimization With Solver

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    Solving the Problem

    click the Solvebutton After an instant or two, the solution values appear in the decision

    variable cells

    Solver Results dialog appears, as shown below

    You can select one or more reports to be produced from theReports list box (and check the Outline Reports box, if you wouldlike the reports outlined you can either keep the solution valuesin the decision variable cells, or discard the solution values(restoring the original cell values)

    Optimization With Solver

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    Thank You