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Excel can be used to find the solution to an LP problem. We illustrate the procedure by using the Wooden Toys Manufacturer example: Maximize 17X+12Y

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Excel can be used to find the solution to an LP problem. We illustrate the procedure by using the Wooden Toys Manufacturer example: Maximize 17X+12Y subjectto:2X+YX+YXY1008000 Start with either a blank worksheet or the template provided. Enter the coefficients and the amounts available. Label the columns appropriately. Yours should look like this: Note that the text labels shown are for our use and not interpreted by Excel. Labels used by Excel will be discussed soon. The yellow cells contain given data. The green cells indicate decision variables: X is cell B2,Y is cell C2. The purple cell is the objective value. The light blue are computed from the decision variables. To compute the objective function 17X+12Y, we multiply B2 by B3 and C2 by C3. Hence, cell A2 gets the following formula: =B2B3+C2C3 This is equivalent to =SUMPRODUCT(B2:C2,B3:C3) This second formula is preferred because it is much easier to use for larger problems. The constraints must also be entered: We do this by computing the finishing time used, 2X+Y, and storing it in cell D6: =SUMPRODUCT(B2:C2,B6:C6) This will be compared to cell E6, which contains the available finishing hours (100). Similarly, the carpentry time used is stored in D7: =SUMPRODUCT(B2:C2,B7:C7) The results stored in column D will be compared to the amounts available of the two resources. These amounts are in column F. Test your formulas by putting numbers into the decision variables' cells. MGMT 3370 The formulas should now read (Control ' displays formulas): Select Solver from the Data menu. A menu will pop up... (Ift docs sot, you must use Add-Ins to add the Solver.) 1. Enter A2 as the cell to be optimized ("Set objective") 2. Verify that "Max" is selected. 3. "By Changing Variable Cells:" B2:C2 (this specifies variables X and Y ) 4. Click on "Add" and another menu comes up. Enter D6:D7 in the left-side box and F6:F7 in the right-side box. Verify that the "

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