Identify the objective, decision cells, and constraints in an optimization problem.
Set up an optimization problem in Excel.
Set up Solver to solve an optimization problem in Excel.
1. Identify and describe the objective
2. Identify and describe the decision variables
3. Identify and describe each constraints
4. Add non-negativity constraints
5. Combine everything into the model
Fuel & Solvent Company
You work at a company that produces two products: a fuel additive and a solvent. Each
of these products is formed from a combination of three materials.
OPTIMIZATION PROBLEM
You have been asked to find the best combination of products that will maximize
potential profit.
Objective
● Each ton of fuel yields a profit of $40
● Each ton of solvent yields a profit of $30
→ Maximum profit = $40 x Fuel + $30 x Solvent
Decision Cells
You have been asked to find the best combination of products that will maximize
potential profit.
DECISION CELLS
● Quantity (tons) of fuel
● Quantity (tons) of solvent
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