311_Session6

311_Session6 - Operations Management Session 6 Linear Programming Excel and Sensitivity Analysis Session 6 Operations Management 2 Operations

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Unformatted text preview: Operations Management Session 6: Linear Programming Excel and Sensitivity Analysis Session 6 Operations Management 2 Operations Management 2 Reminders Exam #1 is Tuesday, 9/23. Open book and notes. No laptops. HW #2 on LP’s due 9/18. Please print out answer and sensitivity reports on questions that ask you to use the Excel Solver. Thursday, 9/18, is devoted to review. We will go over the sample exams posted on Blackboard. Session 6 Operations Management 3 Operations Management 3 Previous Class Defined an LP. Showed examples of how to formulate LP’s. Learned how to solve LP’s graphically. Session 6 Operations Management 4 Operations Management 4 Today Using the Excel Solver to find the solution to an LP. (Do Brewery example first.) Sensitivity analysis Note that supporting .xls files for oil refinery, brewery, and portfolio management are posted to Blackboard. Session 6 Operations Management 5 Operations Management 5 Oil Refinery Example An oil refinery can blend three grades of crude oil to produce regular and super gasoline. Two possible blending processes are available. For each production run the older process uses 5 units of crude A, 7 units of crude B, and 2 units of crude C to produce 9 units of regular and 7 units of super gasoline. The newer process uses 3 units of crude A, 9 units of crude B, and 4 units of crude C to produce 5 units of regular and 9 units of super gasoline for each production run. Session 6 Operations Management 6 Operations Management 6 Oil Refinery Example Because of prior contract commitments, the refinery must produce at least 500 units of regular gasoline and at least 300 units of super for the next month. It has 1500 units of crude A, 1900 units of crude B, and 1000 units of crude C available. For each unit of regular gasoline produced the refinery receives $6, and for each unit of super it receives $9....
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This note was uploaded on 03/02/2010 for the course BUAD OPERATIONS taught by Professor Srinivasan during the Fall '08 term at USC.

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311_Session6 - Operations Management Session 6 Linear Programming Excel and Sensitivity Analysis Session 6 Operations Management 2 Operations

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