Optimization & Linear Programming ppt

Optimization & Linear Programming ppt -...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Optimization Problems have: Decision variables (can be varied) Objective function (what are we optimizing?) Constraints (typically, business rules) In Excel: Changing cells -> decision variables Target cell -> contains the objective (one) to be  minimized or maximized Constraints -> formulas or cells 2
Background image of page 2
A feasible solution satisfies all constraints  But may not be optimum The feasible region is the set of all feasible  solutions An infeasible solution violates at least one of the  constraints The optimal solution is the feasible solution that  optimizes the objective It is possible that no feasible solution exists 3
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
An algorithm that works well in solving linear  programming problems (a set of linear  inequalities) is the simplex method This is implemented in Excel via the Solver add-in  (included in Excel for free) Tools -> Solver Must be turned on via Tools -> Add-ins 4
Background image of page 4
Use Pony Espresso.xls from Bb Pony Expresso Regular Coffee: $1.25 Premium Latte: $2.00 Premium Mocha: $2.25 Under capacity constraints Max cups: 500 Max premium: 350 Max Mocha: 125 How can Pony Expresso maximize its revenue? by optimally deciding how many cups to produce for each kinds of 
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/04/2011 for the course BMGT 301 taught by Professor Wang during the Fall '08 term at Maryland.

Page1 / 16

Optimization & Linear Programming ppt -...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online