Note on formulating the linear programming (LP)

Jun 14, 2020 12:00 PM

problem of Part III of the Final Project.
Hi Class,
As you examine the prompt in the Final Project guidelines and rubric, and the information
provided in the FS A-B tab of the accompanied Case Study Data Set, please note the objective
function is to maximize gross profit based on a production mix of red, white, and organic wine
bottles subject to the constraints which are the three wine ceilings given. The decision
(changing) variables would be the production plan of the number of red, white, and organic
wine bottles. For the changing variable cells, the initial entries in the cells can be blank or any
value of your choice based on the given constraints. Again, gross profit = revenue –
production cost.
As for questions A and B of Part III involving using Excel Solver add-in, please make sure
that before you click on OK from the above pop-up Solver window to accept the optimized
solutions, select the appropriate Reports (Answer, Sensitivity, and/or Limits reports) so Solver
can generate them automatically. Provide appropriate comments about the significance of
some of the parameters generated in the reports.
An annotated Excel file simply means a spreadsheet with corresponding tabs that contains not
only the proper formulation and solutions but also clarifying explanation or comments, as
appropriate.                
Thanks,
Khang

Week 7 – Reflection on the use of Excel

spreadsheet for business analytics and submission Jun 14, 2020 9:00 AM
of Final Project.
Hi Class,
In Week 6, we got a chance to practice how to use a spreadsheet to examine a typical business
problem as a linear programming (LP) problem and solve it using Excel add-in Solver to find
an optimal value (maximization or minimization of an objective function such as total profit of
mix production). As mentioned in Module Seven Overview, specifically in this course, we
have focused on using spreadsheet formulation to isolate essential data, such as various cost
elements, revenue and profit, for business analysis and illustration that can be used for
managerial decision making. In the last two modules, we have also examine business modeling
based on MS Excel and its add-in Solver add-in to formulate, display and solve mathematical
models, represented by linear equations, that simulate real-life business challenges and
opportunities.
By the end of Week 7, you will need to submit your final project. Please note that this final
project is almost a third of your grade, so you should carefully review the requirements of the
critical elements shown in the final project guidelines and rubric to ensure you have
comprehensively answered and included all of the critical elements. For example, you should
specifically mention which measure of central tendency should be used when answering
Section I, Part D, and for Section III, you should discuss solutions that will maximize profits
for the organization based on the Solver analysis. Please see the Module Overview for
additional guidance.
Please note that there is a “FS A-B” tab in the student data set provided that focuses on
maximizing the gross profit of the wine production mix for the Lodi Winery case study which
is separate from the Vinho Winery case study in the previous milestones, so you will need to
formulate the case study as a Linear Programming (LP) problem, and solve it to obtain the
optimal solutions. Remember that Gross Profit = Revenue – Production Cost.      
Overall, please note that all the required calculations and illustrations must be presented
in Excel format, and for the optimization question, the appropriate entries need to be
populated in the Solver Parameters window as well so I can click Solve and verify the results
you show.