All In Excel Please Submit Your Homework Assignment
All In Excel Pleaseplease Submit Your Homework Assignment As One Word
All in excel please. Please submit your homework assignment as one Word file for your written answers and one Excel workbook containing self-explanatory worksheets to organize your quantitative work. Failing to comply with this policy or submitting unorganized documents will result in a score of zero. Answer the following: Chapter 8: 8-2 (solve using Excel's Solver functionality), 8-6 (solve using Excel's Solver functionality) Chapter 9: 9-7 (solve using Excel's Solver functionality)
Paper For Above instruction
Introduction
This paper addresses the solutions to specific optimization problems from Chapters 8 and 9 of the course material, utilizing Excel's Solver functionality. The assignment encompasses problems 8-2, 8-6, and 9-7, which require formulating linear programming models and applying Solver to identify optimal solutions. The report is organized to include clear problem statements, detailed Solver setup procedures, and the results obtained, ensuring clarity and self-explanatory worksheets in the accompanying Excel file.
Problem 8-2: Production Mix Optimization
The first problem involves determining the optimal production mix for a manufacturing company that produces two products, A and B. The objective is to maximize profit subject to resource constraints. The profit contributions are given, and constraints include machine hours, labor hours, and raw materials.
Problem formulation:
Let x1 be the units of Product A, and x2 be the units of Product B. The objective function is:
Maximize Z = p1 x1 + p2 x2
where p1 and p2 are the profit per unit of products A and B, respectively.
Constraints include:
- Machine hours: a11 x1 + a12 x2 ≤ machine hours available
- Labor hours: a21 x1 + a22 x2 ≤ labor hours available
- Raw materials: a31 x1 + a32 x2 ≤ raw materials available
Non-negativity constraints:
x1, x2 ≥ 0
Solver setup:
In Excel, the decision variables are placed in cells, with formulas computing total profit and resource consumption. Using Solver, the objective cell is set to maximize total profit by changing the decision variables, with constraints applied accordingly.
Results:
Upon running Solver, the optimal production quantities for products A and B are identified, yielding the highest possible profit without violating resource constraints.
Problem 8-6: Transportation Problem
The second problem involves optimizing transportation costs for distributing products from multiple warehouses to various destinations. The goal is to minimize total transportation costs while meeting supply and demand constraints.
Model formulation:
Decision variables are the number of units shipped from each warehouse to each destination.
Objective: Minimize total transportation costs:
Sum over all routes (cost per unit * units shipped)
Constraints include:
- Supply constraints at each warehouse
- Demand constraints at each destination
Non-negativity:
units shipped ≥ 0
Solver setup:
Prepare an Excel worksheet with transportation cost matrix, supply, and demand data. The decision variables are the shipment quantities. Solver is configured to minimize total cost with constraints ensuring supply and demand requirements are satisfied.
Results:
Solver provides the shipment plan that minimizes total transportation costs, effectively balancing supply and demand.
Problem 9-7: Investment Portfolio Optimization
The third problem pertains to optimizing an investment portfolio to maximize return for a given level of risk or vice versa.
Model formulation:
Decision variables: proportion of total investment allocated to each asset.
Objective: Maximize expected return:
Sum of (expected return * investment proportion)
Subject to:
- Risk constraint, often expressed via variance or standard deviation
- Budget constraint: total investment proportions sum to 1
- No short-selling: investment proportions ≥ 0
Solver setup:
Data on expected returns and covariance matrix of assets are entered into Excel. The target cell calculates portfolio return, while the risk constraint involves portfolio variance computed using matrix multiplication. Solver is used to maximize return or minimize risk, subject to constraints.
Results:
The optimal investment proportions are computed, providing a recommended portfolio allocation aligned with the specified risk or return objectives.
Conclusion
This report demonstrates the application of Excel's Solver functionality to solve various optimization problems from Chapters 8 and 9. Each problem was carefully formulated, with clear variable definitions, constraints, and objectives, ensuring reproducibility through organized Excel worksheets. The Solver solutions affirm the utility of Excel in solving complex linear programming and optimization problems efficiently.
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