MATH143 Lec 7 Quantitative Methods Charles W Jackson Andrew Nunekpeku MATH143 – Fall 2011 – Monday Week 3 11/25/2017

Agenda for today Excel Solver approach to LP problems T2, Question 35 page 124 Ragsdale, solved in class Translation to LP math Organizing our numbers in Excel Using Solver Plug-in Identifying Objective Function Identifying Decision Variables Identifying Constraints Setting up Options Discovering the Optimum Program Reminder A3 due tomorrow MATH143 – Fall 2011 – Monday Week 3 11/25/2017

Word Problem Translation Step One: What are the Decision Variables? These are the minimum info required to describe what you want done during the period. What are the competing activities? Step Two: What are the Constraints? Which linear combinations of activities is limited? May be more or less than number of decision variables. Beware of implied non-negativity constraints. MATH143 – Fall 2011 – Monday Week 3 11/25/2017

Word Problem Translation Step Three: What is the Objective Function? Describe mathematically how you will decide which of two plans (levels of the activities) you would prefer. Often, this can be cast in the notion of maximizing profit for profit-making enterprises, but other situations might not be based on that metric. MATH143 – Fall 2011 – Monday Week 3 11/25/2017

Word Problem Valu-Com Electronics manufactures five different models of telecommunications interface cards for personal and laptop computers. As summarized in the following table each of these devices requires differing amounts of printed circuit (PC) boards, resistors, memory chips, and assembly MATH143 – Fall 2011 – Monday Week 3 11/25/2017

Per Unit Revenues and Costs Word Problem, Continued The unit wholesale price and manufacturing cost for each model are as follows: Per Unit Revenues and Costs Model Hyperlink Fastlink Speedlink Micolink Etherlink Wholesale Price 189 149 129 169 139 Mfg Cost 136 101 96 137 MATH143 – Fall 2011 – Monday Week 3 11/25/2017

Word Problem, Continued In the next production period, Valu-Com has 80,000 sq. inches of PC board, 100,000 resistors, 30,000 memory chips, and 5,000 hours of assembly labour available. The company can sell all the product it can manufacture, but the marketing department wants to be sure that it produces at least 500 units of each product and at least twice as many fastlink cards as hyperlink cards while maximizing profit. MATH143 – Fall 2011 – Monday Week 3 11/25/2017

Word Problem, Continued Formulate LP problem Create spreadsheet model Establish solution Could Value-Com make more money if it schedules its assembly workers to work overtime? MATH143 – Fall 2011 – Monday Week 3 11/25/2017