Introduction to Management

Science
Session 4
September 14th 2019
 Recap – LP Formulation
• 2-variable LPs can be solved graphically
• Special conditions in LP Models
– Alternate Optimal Solutions
– Redundant Constraints
– Unbounded Solutions
– Infeasibility
• Setting up a mathematical program in Excel using Solver
– Designate cells for
• Decision variables
• Coefficients of the objective function and constraints
• RHS of the constraints
• Calculation of the LHS of the constraints
• Setup as a (Simplex) LP
Practice Problem
 Problem Formulation Steps
• Understand the problem and identify objectives
• Identify decision variables
• State the objective as a linear combination of
the decision variables
• State the constraints as linear combination of
the decision variables
• Identify any upper or lower bounds on the
decision variables
Solver Setup!
Practice Problem
Solver Setup!