Question Details

DQ 1

Linear optimization models are the most common optimization models used in organizations today. Linear optimization models are used in finance, marketing, engineering and other disciplines.

Constructing optimization models is an art form requiring logic because there are several ways to formulate a particular problem. Learning how to construct an optimization model is facilitated by observation and studying examples of different optimization model attributes.

Select an organization or industry other than the one you work for, and illustrate an applied example of a type of linear optimization model, describing unique issues with its formulation and implementation. How might the chosen optimization model provide insight for making a good business decision?

DQ 2

In an integer linear optimization model, some or all of the variables are restricted to being whole numbers. A special type of integer problem is one in which variables can only be 0 or 1, used to model ?yes-or-no? decisions.

Integer linear programming can be used in many application areas such as production planning, scheduling, telecommunications networks, and cellular networks. Using the industry or organization selected in discussion question 1, choose an integer linear programming application area/function and describe the specific goal/task/problem/ planning issue and how integer programming can be used to derive an optimal solution.

Worksheet: [Copy of Lindsey's candles marketing optimization model.xlsx]Sheet1

Report Created: 11/28/2016 10:57:32 PM

Result: Solver found a solution. All Constraints and optimality conditions are satisfied.

Solver Engine

Solver Options Objective Cell (Max)

Cell

\$B\$31 Variable Cells

Cell

\$B\$21 Quantity Produced

\$C\$21 Quantity Produced

\$C\$19 Advertising dollars Name Original Value

Final Value

\$ 306,569.34 \$ 289,473.31 Name

The Romantic

Nosey Rose

The Romantic

Nosey Rose Original Value

12773.7226277

5474.45255474

0

0 Constraints

Cell

Name

\$B\$21 Quantity Produced The Romantic

\$B\$23 Min. percent requirement The Romantic

\$B\$24 Max. percent limitation The Romantic

\$C\$21 Quantity Produced Nosey Rose

\$D\$27 Budget Used Final Value

Integer

7113.11281748 Contin

10669.6692262 Contin

1102.18546958 Contin

1239.95865328 Contin Cell Value

Formula

7113.11281748 \$B\$21&lt;=\$B\$20

0% \$B\$23&gt;=\$C\$23

-5334.83461311 \$B\$24&lt;=\$C\$24

10669.6692262 \$C\$21&lt;=\$C\$20

\$

50,000.00 \$D\$27&lt;=\$B\$12 Status

Binding

Binding

Not Binding

Binding

Binding Slack

0

0%

5334.8346131

0

0 Microsoft Excel 15.0 Sensitivity Report

Worksheet: [Copy of Lindsey's candles marketing optimization model.xlsx]Sheet1

Report Created: 11/28/2016 10:57:33 PM Variable Cells

Cell

\$B\$21

\$C\$21

\$B\$19

\$C\$19 Quantity Produced

Quantity Produced

The Romantic

Nosey Rose

The Romantic

Nosey Rose Final

Value

7113.1128175

10669.669226

1102.1854696

1239.9586533 Reduced

Cost

0

0

0

0 Objective

Coefficient

17.19

15.89

-1

-1 Constraints

Cell

\$B\$21

\$B\$23

\$B\$24

\$C\$21

\$D\$27 Name

Quantity Produced The Romantic

Min. percent requirement The Romantic

Max. percent limitation The Romantic

Quantity Produced Nosey Rose

Budget Used Final

Constraint

Value

Price

R.H. Side

7113.1128175 1.1275841701

0

0 -0.1349970467

0

-5334.8346131

0

0

10669.669226 0.8456881276

0

\$50,000.00 5.7655050207

50000 Allowable

Allowable

Increase

Decrease

0.1397859327 40.670833333

1.00000E+030 0.1283988764

0.8387155963

244.025

6.9502427184 1.0271910112 Allowable

Allowable

Increase

Decrease

6773.1397459

279900

5201.1949323 6847.706422

1.00000E+030 5334.8346131

10190.533981

373200

1.00000E+030

46650 Lindsey's Candles

Cost/Wax

Price/candle The Romantic

Nosey Rose

\$

2.80 \$

2.60

\$

19.99 \$

18.49 Base Demand

Min. percent requirement

Max. percent limitation 500

6

0.40

0.70 Total budget 750

8 50000 Model Unit Profit

Demand

Quantity Produced

Contract

Min. percent requirement

Max. percent limitation Budget

Budget constraint

Profit

= (19.99R + 18.49N) ? (\$2.80R + \$2.60N + Ar + An)

= 17.19R+15.89N - Ar - An The Romantic

Nosey Rose

Total

\$

17.19 \$

15.89

0

0

500

750

1250

12773.7226277 5474.4525547445 18248.175182

547445%

0 \$

\$ 35,766.42 \$

50,000.00 \$ 306,569.34 0

0

Used

14,233.58 \$ 50,000.00 Unused

\$ - Lindsey's Candles

Cost/Wax

Price/candle The Romantic

Nosey Rose

\$

2.80 \$

2.60

\$

19.99 \$

18.49 Base Demand

Min. percent requirement

Max. percent limitation 500

6

0.40

0.70 Total budget 750

8 50000 Model Unit Profit

Demand

Quantity Produced

Contract

Min. percent requirement

Max. percent limitation Budget

Budget constraint

Profit

= (19.99R + 18.49N) ? (\$2.80R + \$2.60N + Ar + An)

= 17.19R+15.89N - Ar - An The Romantic

Nosey Rose

Total

\$

17.19 \$

15.89

0

0

500

750

1250

12773.7226277 5474.4525547445 18248.175182

547445%

0 \$

\$ 35,766.42 \$

50,000.00 \$ 306,569.34 0

0

Used

14,233.58 \$ 50,000.00 Unused

\$ - Microsoft Excel 15.0 Answer Report

Worksheet: [Copy of Lindsey's candles marketing optimization model.xlsx]Interger Constraint

Report Created: 11/29/2016 12:46:43 AM

Result: Solver found an integer solution within tolerance. All Constraints are satisfied.

Solver Engine

Solver Options Objective Cell (Max)

Cell

\$B\$31 Variable Cells

Cell

\$B\$21

\$C\$21

\$B\$19

\$C\$19 Constraints

Cell

\$B\$21

\$B\$23

\$B\$24

\$C\$21

\$D\$27

\$B\$21=Integer

\$C\$21=Integer Quantity Produced

Quantity Produced

Final Value

\$ 289,473.31 \$ 289,462.10 Name

The Romantic

Nosey Rose

The Romantic

Nosey Rose Original Value

Final Value

7113.11281748

7114

10669.6692262

10668

1102.18546958 1102.33333333

1239.95865328

1239.75 Name

Quantity Produced The Romantic

Min. percent requirement The Romantic

Max. percent limitation The Romantic

Quantity Produced Nosey Rose

Budget Used Cell Value

Formula

7114 \$B\$21&lt;=\$B\$20

120% \$B\$23&gt;=\$C\$23

-5333.4 \$B\$24&lt;=\$C\$24

10668 \$C\$21&lt;=\$C\$20

\$

49,998.08 \$D\$27&lt;=\$B\$12 Integer

Integer

Integer

Contin

Contin Status

Binding

Not Binding

Not Binding

Binding

Not Binding Slack

0

120%

5333.4

0

1.9166666667

Solution details:
STATUS
QUALITY
Approved

This question was answered on: Sep 18, 2020

Solution~0001013838.zip (25.37 KB)

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)

STATUS

QUALITY

Approved

Sep 18, 2020

EXPERT

Tutor