Using Prescriptive Analytics In Excel

Using Prescriptive Analytics in Excel

Instructions DYS545: Using Prescriptive Analytics in Excel Using Prescriptive Analytics in Excel Course Project Part One Instructions: You are employed at a pharmaceutical firm that produces two specific supplements - a vitamin supplement designed for children and a iodine supplement for thyroid disorders. The production and sales teams need to decide how many units of each supplement they need to produce in order to maximize profits. According to market research, there exists huge demand for both of these products and the more you produce, the more you sell. Based on the criteria, you have been given the responsibility to prescribe resource allcation in pursuit of profit maximization. build a model to determine how much of each supplement to produce.

You learn that the average profit generated by each unit is $15 and $21 for the vitamin supplement and the iodine supplement respectively. The average number of labor hours required to produce each unit of both the brands is 6 hours and 7 hours respectively. The machine hours are 7 and 12 respectively. You cannot use more than 50,000 machine hours and labor laws only permit the labor to work for a total of 30,000 hours during the period. Given these constraints, create a solver model to find optimal resource allocation that will determine each pharma product production level while meeting the goal of profit maximizing.

Develop an Answer Report. Explain your analysis of the solver model. Model Super Pharma, Inc. Categories Vitamin Supplement Iodine Supplement Totals Unit Profit $ - 0 Units Produced Machine (hours) - 0 Labor (hours) - 0 Total Profits $ - 0 Constraints Cell Reference Condition Condition2 Instructions Using Prescriptive Analytics in Excel Module 2 Example Spreadsheets Instructions: As the Human Resources Manager, you need to identify the most effective way to assign 6 new employees to 5 positions within the organization. You have a shortage of open positions and must determine which employee will be unassigned for the week. This employee will be sent to skills training instead. You are given ratings for the employees based on a trial week rating from managers in the respective departments. The ratings are on a 1-10 scale with 10 being the best score. Employees will be assigned to one unique position since all work happens simultaneously. Your goal is to maximize skill level as you assign the work tasks.

Complete the model by adding necessary formulas and populate the constraints table. Create a solver model that prescribes best employee assignments based on skills and determines which employee will be sent for skills training due to the shortage in positions this week. Module 2 Shortage Employee Skill level by work task Employee Tasks Number of Tasks Skills level Data Entry Inventory Report Writing Budgeting Training Unassigned Data Entry Inventory Report Writing Budgeting Training Unassigned Employee Employee Employee Employee Employee Employee Total Assignment Skills level Total Constraints As the Human Resources Manager, you need to identify the most effective way to assign 6 new employees to 5 positions within the organization.

You have a shortage of open positions and must determine which employee will be unassigned for the week. This employee will be sent to skills training instead. You are given ratings for the employees based on a trial week rating from managers in the respective departments. The ratings are on a 1-10 scale with 10 being the best score. Employees will be assigned to one unique position since all work happens simultaneously. Your goal is to maximize skill level as you assign the work tasks. Complete the model above by adding necessary formulas and populate the constraints table. Create a solver model that prescribes best employee assignments based on skills.

Part Two A Instructions: Follow all instructions. Distribution Ingredients R US, Inc. Order Distribution Plan Shipping Costs from Distribution Center (per pallet) Numberof Items Shipped Food Retailers Pallet Orders Distribution Ctr. 1 Distribution Ctr. 2 Distribution Ctr. 3 Distribution Ctr. 1 Distribution Ctr. 2 Distribution Ctr. 3 Total Shipped Total Costs Food Buzz 60 $ 20.25 $ 78.15 $ 27.15 $ - 0 Healthy Stuff 78 $ 50.85 $ 50.00 $ 47.90 $ - 0 Smoothie City 125 $ 84.00 $ 38.40 $ 65.55 $ - 0 Burger Barn 187 $ 86.65 $ 25.40 $ 13.90 $ - 0 Café Organic 313 $ 108.95 $ 21.50 $ 33.95 $ - 0 Dessert Center 567 $ 116.45 $ 7.95 $ 26.20 $ - 0 Total Initial Inventory 1,615 Remaining Inventory 1,615 Constraints Instructions: The ingredients are ordered by pallet and transported from one of three distribution centers. Depending on order type, the nearest distribution center cannot always be utilized to fill orders. Ingredients R US, Inc. has tasked you with satisfying demand while minizing total cost to ship product to customers. Demand must be met and there is enough stock to have pallets left over. Complete the model above by adding necessary formulas and populate the constraints table. Create a solver model to meet demand while minimizing total costs.

Paper For Above instruction

In tackling the scenario presented by the pharmaceutical company, the primary goal is to optimize resource allocation to maximize profits while respecting operational constraints. To achieve this, a linear programming model integrated with Excel Solver is the ideal solution. This approach allows for systematic decision-making based on quantifiable data, minimizing subjective biases and ensuring an optimal production plan aligned with the company’s profit objectives and limitations.

Initially, the model requires defining decision variables. Let’s denote the number of units produced for the vitamin supplement as x₁ and the iodine supplement as x₂. These variables are the core of the optimization, directly influencing profit maximization. The total profit function can be formulated as:

Maximize Z = 15x₁ + 21x₂

This objective function directly correlates with the profit per unit for each supplement. The model must incorporate constraints based on resource availability, which are critical to ensuring feasible and realistic solutions.

Labor and machine hours are the primary resource constraints. The total labor hours used must not exceed 30,000 hours:

6x₁ + 7x₂ ≤ 30,000

Similarly, machine hours consumed should not surpass 50,000 hours:

7x₁ + 12x₂ ≤ 50,000

Non-negativity constraints reflect the practical reality that production units cannot be negative:

x₁, x₂ ≥ 0

These constraints, combined with the profit maximization objective, deliver the foundation for the solver model.

Using Excel Solver, decision variables (x₁ and x₂) are set to be adjustable, subject to the constraints outlined. The solver will then seek to maximize the profit function while adhering to the resource limitations. The key steps involve inputting the formulas into cell structure, defining the objective cell, specifying the variable cells, and setting the constraints within the solver parameters.

Further analysis involves exploring the impact of varying resource limits or profit parameters on the optimal solution. Sensitivity analysis provided by Solver aids in understanding the robustness of the solution and identifying potential areas for operational improvements.

In summary, the linear programming model in Excel, supported by Solver, offers a systematic and effective means to determine the optimal production quantities for the supplements. It ensures that tax constraints are met while maximizing profits, enabling the pharmaceutical company to make data-driven decisions that enhance operational efficiency and profitability.

References

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