Identify a product or service based on the real world such as: CANDLES. Develop a LP problem using Excel Solver

DUE: 11:59PM EST

You are a small to midsize business organization or entity offering some type of product or service or a combination of both. You have decisions to make that require more than a few moments of deliberations to produce a simple solution. In fact, there are no simple or easy solutions when running your business, satisfying stakeholders, staying in business and remaining competitive. You are constantly confronted with the goal of maximizing profit and production while minimizing costs and downtime. Therefore, you need to develop a feasible solution(s) that will allow you to achieve the organization’s objectives.

Real-time, real-world managerial decision-making modeling using linear programming (LP). The objective of this project is for you to use and apply what you are learning in BUS 304 to develop and find optimal solution(s) to satisfy all problem constraints.

INSTRUCTIONS

  • Identify a product or service based on the real world such as: CANDLES
  • Develop a LP problem using Excel Solver
  • Follow the logical steps for LP problems

o Formulate the Problem

o Solve the Problem

o Interpret the Results

DELIVERABLES

Part I

Provide a detailed WORD document that outlines your organization, product and or service and the LP model application. In the document you must:

  1. In your LP explain the basic assumption of a LP
  2. What are the basic assumptions of LP
  3. How do these assumptions apply to your situation?
  4. Provide examples of each assumption
  5. Write your word problem by developing a scenario and explaining the LP problem you are attempting to model. What elements MUST you consider when formulating the problem?
  6. What are you trying to achieve; what is your objective? Simplify your word problem with mathematical/algebraic expression (Minimize A + B + C). In full detail, identify the

following:

  1. Objective function
  2. Decision Variables
  3. Constraints
  4. Explain each logical step
  5. Use the examples in the book to pattern your LP models [why reinvent the wheel?].
  6. You are expected to layout your LP as outlined in the text and used in class.

Part II – Excel Solver Analysis Spreadsheet

Provide an Excel file of your complete LP analysis. Your Excel LP analysis spreadsheet must include the following:

  1. Excel Solver framework model
  2. Show your work
  3. Provide All three solver reports
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