Linear Programming

Excel Solver
 The Linear Programming Model

MAX 8X1 + 5X2

s.t. 2X1 + 1X2 ≤ 1000 (Plastic)

3X1 + 4X2 ≤ 2400 (Prod. Time)

X1 + X2 ≤ 700 (Total Prod.)

X1 - X2 ≤ 350 (Mix)

All x’s ≥ 0
 Setting Up the Excel Spreadsheet
• Use one column for each decision variable
and label each column.
• Leave a blank row where the results will
be calculated – row of “Changing Cells”
and one more blank row below that
• Label each row (changing cells, objective
function and constraints) to the left with a
brief description.
• Leave one column in between the column
for the last variable and the sign of the
constraint for the total of left hand side.
– Label the row as Total LHS (for left hand side)
 Input Coefficients/ Label Rows
Changing Cells Label Changing Cells
Where results will be given

Label for
Left Hand Side Total

Constraint
Objective Function Coefficients
Labels
Label
Enter SUMPRODUCT Formula for
the Total Proift

Highlight cells C4 and D4

and press the F4 function
key to enter $ signs

Highlight cells
C6 and D6

=SUMPRODUCT($C$4:$D$4,C6:D6)
is equivalent to
=$C$4*C6+$D$4*D6
Drag SUMPRODUCT Formula
Down to get LHS Totals

Drag cell E6 down to

cells E7:E10

+
 Go to Tools
Select Solver
Note: If Solver is not in Tools menu,
select Add-Ins from Tools menu and
check Solver.

1. Target cell is the cell that contains

object function value – Click cell E6. $E$6

2. Click Max or Min (Default is Max).

$C$4:$D$4
3. The Changing Cells are the cells
containing the decision variables –
Highlight cells C4 and D4.
4. Click Add to add constraints.
 Types of Constraints
• There are 3 types of functional constraints
that can be added:
• “≤”
• “=”
• “≥”
– There are also 2 other constraints in Solver
that deal with requiring the value of a decision
variable to be:
• Integer
• Binary
Adding A Functional Constraint
• The general approach is:

$E$7 $G$7

≤
Click on the cell reference
Click on a cell reference =
containing the
containing ≥
corresponding RHS value
a total LHS value

Click OK if no Click Add if more

more constraints constraints are to
are to be entered be entered
 Adding Several Constraints
Simulataneously
• If several consecutive constraints all have the
same relation (“≤”, “=”, or “≥”) these can be
entered all at once by:
• Highlighting the set of total LHS values
• Choosing the relationship
• Highlighting the corresponding set of RHS values.

$E$7:$E$10 <= $G$7:$G$10

This is what we enter in the example given here; then we click OK.
Clicking Options

We must finally say

that the problem is to
be solved as a linear
program and that the
variables are “≥ 0”.
This is done in the
Options dialogue box.
 The Options Dialogue Box

Click
OK

Check
Assume Linear Model

Check
Assume Non-Negative

Most of the rest of the entries deal with integer and nonlinear models.
Click Solve

Click
Solve
 Solver Solution

Optimal Solution Optimal

Objective Function
Value

Highlight
Answer
Sensitivity

Click
OK
The Answer Report

Name is first nonnumeric cell to the left of the cell

followed by the first nonnumeric cell above it

Optimal Objective
Function Value

Optimal Solution

Total LHS Values

Difference
Between
RHS - LHS
 The Sensitivity Report
The Objective
Effect on Coefficients Input The amount the
objective function corresponding
if X ≥ 1 is added objective function
coefficient can
increase or decrease
Optimal without changing
Solution the optimal solution

The amount the

The amount the The RHS RHS value can
objective function Coefficients Input increase or decrease
Total LHS would change
Value without changing
with 1 more unit the shadow price
on the RHS
 Notes on Sensitivity Report Output
• 1E+30 is Excel’s way of saying “infinity”
• Allowable Increases and Decreases apply to
changing that one coefficient only – keeping
all of the other coefficients the same.
• Reduced Cost has many meanings:
– How would the objective function be affected if
the variable had to assume a value of at least 1
– How much would the objective function
coefficient have to change before it is
economically beneficial for the corresponding
variable to be positive.
 Review
• How to set up an Excel spreadsheet to
solve a linear program
• Filling in the Solver dialogue box.
• How to “Add Constraints”
• Filling in the Options dialogue box
• Reading and interpreting:
– Excel Output
– The Answer Report
– The Sensitivity Report