Chapter 13
Linear Optimization
 

Linear Optimization

 Optimization is the process of selecting values of

decision variables that minimize or  maximize 
some quantity of interest.
 Optimization models have wide applicability in

operations and supply chains, finance, marketing,

and other disciplines.
 This chapter focuses only on linear optimization

models.
 

Building Linear Optimization Models

1. Identify the decision variables  the unknown values

that the model seeks to determine.
!. Identify the objective function  the quantity we seek
to minimize or ma"imize.
#. Identify all appropriate constraints  limitations,
requirements, or other restrictions that are imposed on
any solution, either from practical or technological
considerations or by management policy.
$. %rite the ob&ective function and constraints as
  mathematical e"pressions.
 

Example 131 !"len"a !"i Compan#$

%dentif#ing Model Components
 ''( sells two snow ski models ) *ordanelle + eercrest
 -anufacturing requires fabrication and finishing.
 The fabrication department has 1! skilled workers, each of
whom works  hours per day. The finishing department has #
workers, who also work a )hour shift.
 /ach pair of *ordanelle skis requires #.0 labor)hours in the
fabricating department and 1 labor)hour in finishing.
 The eercrest model requires $ labor)hours in fabricating and
1.0 labor)hours in finishing.
 The company operates 0 days per week.
 ''( makes a net profit of 02 on the *ordanelle model and
30 on the eercrest model.
 

Example 131 Continued

 'tep 14 Identify the decision variables
 The company wants to determine how many of

each model should be produced on a daily basis

to ma"imize net profit.
 efine

◦ *ordanelle 5 number of pairs of *ordanelle skis

produced6day
◦ eercrest 5 number of pairs of eercrest skis
produced6day
 (learly specify the dimensions of the variables7
 

Example 131 Continued

 'tep !4 Identify the ob&ective function
 ''( wishes to ma"imize net profit, and we are given the
net profit figures for each type of ski.
◦ ''( makes a net profit of 02 on the *ordanelle model and 30
on the eercrest model.
 

Example 131 Continued

 'tep #4 Identify the constraints
◦ 8ook for clues in the problem statement that describe limited resources
that are available, requirements that must be met, or other restrictions.
 9oth the fabrication and finishing departments have limited numbers
of workers, who work only  hours each day: this limits the amount
of production time available in each department4
◦ ;abrication4 Total labor hours used in fabrication cannot e"ceed the amount of
labor hours available.
◦ ;inishing4 Total labor hours used in finishing cannot e"ceed the amount of labor
hours available.
 The problem also notes that the company anticipates selling at least
twice as many eercrest models as *ordanelle models4
◦ <umber of pairs of eercrest skis must be at leasttwice the number of parts of
*ordanelle skis.
 <egative values of the decision variables cannot occur
=>nonnegativity constraints?@
 

&ranslating Model %nformation into

Mathematical Expressions
 Aepresent decision variables by descriptive
names, abbreviations, or subscripted letters
= X 1, X 2 , etc.@
◦ ;or mathematical formulations involving many
variables, subscripted letters are often more
convenient.
◦ In spreadsheet models, we recommend using
more descriptive names to make the models and
solutions easier to understand.
 

Example 13'$ !!C ( Modeling the

Objective )unction
 Brofit per pair of skis sold4
  02 for *ordanelle skis, 30 for eercrest skis
Ob&ective ;unction4
  -a"imize total profit
5 02 Jordanelle C 30 Deercrest 
 <ote how the dimensions verify that the

e"pression is correct4
◦ =6pair of skis@=number of pairs of skis@ 5 .
 

&ranslating Constraints
Mathematicall#
 (onstraints are e"pressed as algebraic inequalities or
equations, with all variables on the left side and constant
terms on the right.
 8ook for key words in word statements of constraints4
◦ >(annot e"ceed? translates mathematically as >D?
◦ >Et least,? would translate as >F?
◦ >-ust contain e"actly,? would specify an >5 ? relationship.
  Ell constraints in optimization models must be one of
these three forms.
 

Constraint )unctions
 E constraint function is the left)hand side of a
constraint.
◦ /.g.4 Total labor)hours used in fabrication cannot
e"ceed the amount of labor hours available.
 

Example 133$ !!C ( Modeling the

Constraints
 ;abrication constraint
  Evailable fabrication labor hours4 =1! workers@= hours6day@ 5 G$
hours6day
 Aequired fabrication labor hours per ski pair4 #.0 hours for
*ordanelle, $ hours for eercrest
 ;abrication constraint4 #.0 Jordanelle C $ Deercrest  D G$
 ;inishing constraint
  Evailable finishing labor hours4 =# workers@= hours6day@ 5 !1
hours6day
 Aequired finishing labor hours per ski pair4 1 hour for *ordanelle:
1.0 hours for eercrest
 ;inishing constraint4 1 Jordanelle C 1.0 Deercrest  D !1
 

Example 133 Continued

 -arket mi"ture constraint

◦ The number of pairs of eercrest skis must be at least
twice the number of *ordanelle skis.
◦ Deercrest  F ! Jordanelle,
◦ or − ! Jordanelle C 1 Deercrest  F 2
 <onnegativity constraints4
◦ Jordanelle F 2
◦ Deercrest  F 2
 

!!C Optimization Model

-a"imize total profit 5 02 Jordanelle C 30 Deercrest 

  #.0 Jordanelle C $ Deercrest  D G$
  1 Jordanelle C 1.0 Deercrest  D !1
  −! Jordanelle C 1 Deercrest  
F2
  Jordanelle F 2
  Deercrest  F 2
The highlighted portions are the constraint functions
 

More *bout Constraints

 'ome e"amples4
 The amount of money spent on research and
development pro&ects cannot e"ceed the assigned
budget of #22,222.
◦  Emount spent on research and development D #22,222
 (ontractual requirements specify that at least 022 units
of product must be produced.
◦ <umber of units of product produced F 022
  E mi"ture of fertilizer must contain e"actly #2H nitrogen.
◦  Emount of nitrogen in mi"ture6total amount in mi"ture 5 2.#2
 

Example 13+$ Modeling a Mixture

Constraint
  E fertilizer mi"ture is made of two ingredients and must contain e"actly
#2H nitrogen. Ingredient X  contains !2H nitrogen. Ingredient Y
contains ##H nitrogen.
 efine x  5 the number of pounds of X  in the mi"ture and y  5 the
number of pounds of Y  in the mi"ture
◦  Emount of nitrogen in mi"ture 5 2.!2 x  C 2.##y 
◦ Total amount of mi"ture 5  x C y 
◦ ;raction of nitrogen in mi" 5 =2.!2 x  C 2.##y)6=" C y@
 'ince the fraction of nitrogen must be 2.#2, the constraint
would be
=2.!2 x  C 2.##y)6=" C y@ 5 2.#2, or simplified as )2.1 x  ) 2.2#y  5 2
 <ote that the first version is not linear: however the simplified
constraint is linear.
 

Characteristics of Linear Optimization

Models
 E linear optimization model =often called a
linear program, or L,@ has two basic properties.
1. The ob&ective function and all constraints are
linear functions of the decision variables.
◦ This means that each function is simply a sum of terms,
each of which is some constant multiplied by a decision
variable.
!.  Ell variables are continuous
◦ This means that they may assume any real value
=typically, nonnegative@.
 

%mplementing Linear Optimization

Models on !preadsheets
 But the ob&ective function coefficients, constraint coefficients, and
right)hand values in a logical format in the spreadsheet.
◦ ;or e"ample, you might assign the decision variables to columns and the
constraints to rows
 efine a set of cells =either rows or columns@ for the values of the
decision variables.
◦ The names of the decision variables should be listed directly above the
decision variable cells.
◦  se shading or other formatting to distinguish these cells.
 efine separate cells for the ob&ective function and each constraint
function =the left)hand side of a constraint@.
◦ se descriptive labels directly above these cells.
 

Example 13-$ * !preadsheet Model for

!"len"a !"is

ecision variables Ob&ective function (onstraint functions

 

Correspondence Bet.een the Model and

the !preadsheet
-a"imize Jordanelle C 30 Deercrest  -a"imize !! 5 9JK B14 C (JK C14
#.0 Jordanelle C $ Deercrest  D G$ 10 5 93K B14 C (3K C14 D 3
1 Jordanelle C 1.0 Deercrest  D !1 13 5 9K B14 C (K C14 D 
−! Jordanelle C 1 Deercrest  F 2 1J 5 C14 ) !K B14 F 2
Jordanelle F 2 B14 F 2
Deercrest  F 2 C14 F 2
 

/sing the !/M,0O/C& )unction

 In /"cel, the pairwise sum of products of terms
can easily be computed using the '-BAO(T
function.
◦ 9JK 91$ C (JK(1$ 5 '-BAO(T=9J4(J,91$4(1$@
 This often simplifies the model)building process,
particularly when many variables are involved.
 

Excel )unctions to *void in Linear

Optimization
 'everal common functions in /"cel can cause difficulties
when attempting to solve linear programs using 'olver
because they are discontinuous =or >nonsmooth?@ and do
not satisfy the conditions of a linear model.
 These include4
◦ I;
◦ -EL
◦ I<T
◦ AO<
◦ (O<T
 

!olving Linear Optimization Models

 E feasible solution to an optimization problem is

any solution that satisfies all of the constraints.
 En optimal solution is the best of all the feasible

solutions.
 'oftware for determining optimal solutions

◦ Solver  =>standard Solver ?@ is a free add)in packaged with

/"cel for solving optimization problems.
◦ Premium Solver which is a part of  !nalytic Solver
Platform has better functionality, accuracy, reporting, and
interface.
 

/sing the !tandard !olver 

 Data M !nalysis M Solver in the /"cel ribbon
 se the Solver Parameters dialog to define the
ob&ective, decision variables, and constraints from
your spreadsheet model.
 

Example 132$ /sing !tandard !olver for

the !!C ,roblem
 Solver Parameters dialog
Ob&ective function cell
ecision variables cells
(onstraints
to enter click !dd  and fill in the  !dd
Constraint dialog4

 Elways select >'imple" 8B?

(heck bo" for <onnegativity
 

!olver 0esults ialog

 Three reports4 Enswer,
'ensitivity, and 8imits
◦ To add them to your /"cel
workbook, click on the
ones you want and then
click "# .
 o not check the bo"
"utline $e%orts: this is
an /"cel feature that
produces the reports in
Noutlined format.N
 

Optimal !olution to !!C ,roblem

 

/sing Premium Solver 

 Efter installing !nalytic Solver Platform, Premium
Solver  will be found under the !dd&'ns tab in the
/"cel ribbon. 
 Premium Solver has a different user interface than

the standard Solver .

 

Example 13$ /sing Premium Solver for

the !!C Model
 Solver Parameters
dialog
 ;irst, click on "(ective 
and then click the !dd  
button. The !dd
"(ective  dialog
appears, prompting you
for the cell reference for
the ob&ective function
and the type of ob&ective
=min or ma"@.
 

Example 13 Continued

 <e"t, highlight *ormal  
under the +aria(les list
and click !dd : this will
bring up an !dd
+aria(le Cells dialog.
/nter the range of the
decisions variables in
the Cell $eference field.
 

Example 13 Continued

 <e"t, highlight *ormal  
under the Constraints  
list and click the  !dd  
button: this brings up
the !dd Constraint
dialog, &ust like in the
standard version.
 

Example 13 Continued

 (heck this bo"

 'elect >'tandard
8B6uadratic? for the
solving method
 

Example 13 Continued

 (ompleted
Premium Solver
dialog
 

Solver  *ns.er 0eport
 The Solver  Enswer Aeport provides basic information about the
solution, including the values of the original and optimal ob&ective
function =in the "(ective Cell section@ and decision variables =in the
Decision +aria(le Cells section@.
 In the Constraints section, Cell +alue refers to the value of the

constraint function using the optimal values of the decision

variables.
  E binding constraint is one for which the (ell Palue is equal to the

right)hand side of the value of the constraint.

 The Status column tells whether each constraint is binding or not

binding.
 !lac" refers to the difference between the left) and right)hand sides

of the constraints for the optimal solution.

 

Example 134$ %nterpreting the !!C *ns.er

0eport
 

Example 134 Continued

 nderstanding slack values
-a"imize profit 5 02 Jordanelle C 30 Deercrest 
  #.0 Jordanelle C $ Deercrest  D G$ =fabrication@
  1 Jordanelle C 1.0 Deercrest  D !1 =finishing@
  −! Jordanelle C 1 Deercrest  F 2 =market
mi"@
  Jordanelle  F2
  Deercrest  F 2

Optimal solution4 Jordanelle 5 0.!0: Deercrest  5 12.0

;abrication constraint4 #.0=0.!0@ C $=12.0@ 5 32.#0 D G$
 !#.3!0 e"cess fabrication hours

;inishing constraint4 1=0.!0@ C 1.0=12.0@ 5 !1 D !1

 <o e"cess finishing hours

-arket mi" constraint4 −!=0.!0@ C 1=12.0@ 5 2 F 2

  /"actly twice the number of eercrest skis as *ordanelle skis
 
 

5raphical %nterpretation of Linear

Optimization
 The set of feasible solutions is called the feasible region.
 ;or a problem with only two decision variables,  x 1  and x 2 , we can draw the
feasible region on a two)dimensional coordinate system by plotting the
equations corresponding to each constraint.
 <onnegativity constraints4
 

Example 136$ 5raphing the Constraints in the !!C

,roblem
 ;abrication constraint4 #.0 *ordanelle C $ eercrest D G$
◦ Blot the equation4 #.0 *ordanelle C $ eercrest 5 G$
◦ 'et *ordanelle 5 2: eercrest 5 !1
◦ 'et eercrest 5 2: *ordanelle 5 !$
 

Example 136 Continued

 ;inishing constraint4 1 *ordanelle C 1.0 eercrest D !1
◦ Blot the equation4 1 *ordanelle C 1.0 eercrest 5 !1
◦ 'et *ordanelle 5 2: eercrest 5 1$
◦ 'et eercrest 5 2: *ordanelle 5 !1
 

Example 136 Continued

 -arket mi" constraint4 )! *ordanelle C 1 eercrest F 2
◦ Blot the equation4 )! *ordanelle C 1 eercrest 5 2
◦ 'et *ordanelle 5 0: eercrest 5 12
◦ 'et eercrest 5 2: *ordanelle 5 2
 

Example 1317 %dentif#ing the )easible 0egion and

Optimal !olution
 ;easible region
 

Corner ,oints
 The points at which the constraint lines intersect along
the feasible region are called corner points.
 If an optimal solution e"ists, then it will occur at a corner
point.
 

Example 1317 Continued

 9ecause our ob&ective is
to ma"imize profit, we
seek a corner point that
has the largest value of
the ob&ective function Total
Brofit 5 02 *ordanelle C 30
eercrest.
 Qraph the profit line and
move in an improving
direction until it passes
through the last corner
point of the feasible
region.
 'olve the two intersecting
equations simultaneously
to find the optimal
solution.
 

8o. !olver 9or"s

 'olver uses a mathematical algorithm called the sim%lex
met,od , which was developed in 1J$ by the late r.
Qeorge antzig.
◦ The simple" method characterizes feasible solutions algebraically
by solving systems of linear equations.
◦ It moves systematically from one corner point to another to
improve the ob&ective function until an optimal solution is found
=or until the problem is deemed infeasible or unbounded@.
◦ It is quick and efficient.
 

Example 1311$ Crebo Manufacturing

 (rebo -anufacturing produces $ types of structural
support fittings.
 -achining centers have a capacity of !G2,222 minutes
per year.
 Qross margin6unit and machining requirements4

 Row many units of each product type should be

produced to ma"imize gross profit marginS
 

Example 1311 Continued

 efine X 1, X !, X #, and X $ as the number of plugs, rails,
rivets, and clips to produce.
 Ob&ective4
 -a"imize gross profit margin 5 2.#  X 1 C 1.# X ! C 2.0 X # C 1.! X $
 (onstraints4
 1 X 1 C !.0 X ! C 1.0 X # C ! X $ D !G2,222
  X 1, X !, X #, X $ F 2
 

8o. the !implex Method 9or"s

 The simple" method evaluates the impact of constraints
in terms of their contribution to the ob&ective function for
each variable.
 ;or the simple case of only one constraint, the optimal
=ma"imum@ solution is found by simply choosing the
variable with the highest ratio of the ob&ective coefficient
to the constraint coefficient.
 

Example 131'$ !olving the Crebo

Manufacturing Model

 (lips have the highest marginal profit per unit of resource consumed.

 -a"imum possible production of clips

  5 !G2,222 minutes  minutes6unit
  5 !G2,222  ! 5 1$2,222
 Brofit for ma"imum production of clips
  5 gross margin6unit K ma" possible production
  5 1.!2 K 1$2,222 5 13G,222
 

8o. Solver  Creates :ames in 0eports

 Solver assigns names to4
◦ Target cells
◦ (hanging cells
◦ (onstraint function cells
 <ames are formed by concatenating the first cell
containing te"t to the4
◦ 8eft of the cell and
◦  Ebove the cell
 

!!C Example
 <ame assigned to ob&ective function
◦ (ell !!4 >Brofit (ontribution C Total Brofit?
 <ames assigned to decision
variables4
◦ (ell 91$4 >uantity Broduced C *ordanelle?
◦ (ell 9104 uantity Broduced C eercrest?
 <ames assigned to constraints4
◦ (ell 104 >;abrication C Rours sed?
◦ (ell 134 >;inishing C Rours sed?
◦ (ell 1J4 >-arket mi"ture C /"cess
eercrest?
 

Solver  Outcomes
 /ni;ue optimal solution
◦ there is e"actly one solution that will result in the ma"imum =or
minimum@ ob&ective.
 *lternative <multiple= optimal solutions
◦ the ob&ective is ma"imized =or minimized@ by more than one
combination of decision variables, all of which have the same
ob&ective function value.
 /nbounded solution
◦ the ob&ective can be increased or decreased without bound =i.e.,
to infinity for a ma"imization problem or negative infinity for a
minimization problem@
 %nfeasibilit#
◦ no feasible solution e"ists
 

Example 313$ * Model .ith *lternative

Optimal !olutions
 <ew ob&ective function in the ''( problem4
◦ -a" 02 *ordanelle C 0 eercrest

1#)
 

Example 131+$ * Model .ith an /nbounded

!olution
 Aemove the finishing and fabrication constraints from the 'klenka
'ki problem.

 Solver  message4
 

Example 131-$ *n %nfeasible Model

 'uppose, by mistake, the modeler in the 'klenka 'ki problem used
a F sign in the fabrication constraint =instead of D@4
 

/sing Optimization Models for ,rediction

and %nsight
 -odels should be used to provide insight for
making better decisions.
◦ %hat might happen should the model assumptions
change or when the data used in the model are
uncertainS
◦ %ith Solver , answers to such questions can easily be
found by simply changing the data and re)solving the
model.
 

Example 1312$ /sing Solver  for 9hat>%f

*nal#sis
 ;our questions are posed by the managers of
'klenka 'ki company4
1. If the Jordanelle skiUs profit increased 126pair,
how would the optimal solution changeS
!. If the Jordanelle skiUs profit decreased 126pair,
how would the optimal solution changeS
#. If 12 additional finishing hours were available,
how would manufacturing plans be affectedS
$. If ! fewer finishing hours were available, how
would manufacturing plans be affectedS
 

Example 1312 Continued

 'ummary of %hat)If scenarios4
 

Solver  !ensitivit# 0eport
 The 'ensitivity Aeport allows us to understand how
◦ the optimal ob&ective value and optimal decision variables
are affected by changes in the ob&ective function
coefficients,
◦ the impact of forced changes in certain decision variables,
or 
◦ the impact of changes in the constraint resource limitations
or requirements.
 The 'ensitivity Aeport information applies to changes in
only one of the model parameters at a time: all others
are assumed to remain at their original values.
 

!ensitivit# 0eport for the !!C

,roblem
 

Example 131$ %nterpreting !ensitivit#

%nformation for ecision ?ariables

0educed Cost4 Row much the ob&ective function coefficient needs to be

reduced for a nonnegative variable that is zero in the optimal solution to
become positive. If a variable is positive in the optimal solution, its reduced
cost is zero.
If the ob&ective coefficient of any one variable that has positive value in the
current solution changes but stays within the range specified by the Ellowable
Increase and Ellowable ecrease, the optimal decision variables will stay the
same: however, t,e o(ective function value -ill c,an.e.
 

Example 1314$ /nderstanding :onzero

0educed Costs
 'ensitivity report for the 'klenka 'ki model after
changing the profit on Jordanelle skis from 02 to $2
 

Example 1316$ %nterpreting !ensitivit#

%nformation for Constraints

!hado. ,rice ) how much the ob&ective function will change as the
right hand side of a constraint is increased by 1.
%henever a constraint has positive slack, the shadow price is zero.
%hen a constraint involves a limited resource, the shadow price
represents the economic value of having an additional unit of that
resource.
 

Limits 0eport

 'hows the upper and lower limits that each

decision variable can assume while satisfying all
constraints and holding the other variables
constant.
 

/sing the !ensitivit# 0eport

 If a change in an ob&ective function coefficient remains
within the Ellowable Increase and Ellowable ecrease
ranges in the Decision +aria(le Cells section of the
report, then the optimal values of the decision variables
will not change. Rowever, you must recalculate the value
of the ob&ective function using the new value of the
coefficient.
 If a change in an ob&ective function coefficient e"ceeds
the Ellowable Increase or Ellowable ecrease limits in
the Decision +aria(le Cells section of the report, then
you must re)solve the model to find the new optimal
values.
 

/sing the !ensitivit# 0eport

<Continued=
 If a change in the right)hand side of a constraint remains
within the Ellowable Increase and Ellowable ecrease ranges
in the Constraints section of the report, then the shadow price
allows you to predict how the ob&ective function value will
change. -ultiply the change in the right)hand side =positive if
an increase, negative if a decrease@ by the value of the
shadow price. Rowever, you must re)solve the model to find
the new values of the decision variables.
 If a change in the right)hand side of a constraint e"ceeds the

 Ellowable Increase or Ellowable ecrease limits in the

Constraints section of the report, then you cannot predict how
the ob&ective function value will change using the shadow
price. Vou must re)solve the problem to find the new solution.
 

Example 13'7$ /sing !ensitivit#

%nformation to Evaluate !cenarios
 'uppose that the unit profit on *ordanelle skis is increased by 12.
Row will the optimal solution changeS %hat is the best product mi"S

◦ Is the increase in the ob&ective function coefficient is within the range of

the Ellowable Increase and Ellowable ecrease in the ecision Pariable
(ells portion of the reportS
◦ 9ecause 12 is less than the Ellowable Increase of infinity, we can safely
conclude that the optimal quantities of the decision variables will not
change.
◦ Rowever, because the ob&ective function changed, we need to compute
the new value of the total profit4 0.!0=32@ C 12.0=30@ 5 JJ.02.
 

Example 13'7 Continued

 'uppose that the unit profit on *ordanelle skis is
decreased by 12 because of higher material costs. Row
will the optimal solution changeS %hat is the best
product mi"S

◦ The change in the unit profit e"ceeds the Ellowable ecrease

=3.3@. %e can conclude that the optimal values of the decision
variables will change, although we must re)solve the problem to
determine what the new values would be.
 

Example 13'7 Continued

 'uppose that 12 additional finishing hours become
available through overtime. Row will manufacturing
plans be affectedS

◦ (heck if the change in the right)hand)side value is within the

range of the Ellowable Increase and Ellowable ecrease in the
Constraints section of the report.
◦ Ten additional finishing hours e"ceeds the Ellowable Increase.
Therefore, we must re)solve the problem to determine the new
solution.
 

Example 13'7 Continued

 %hat if the number of finishing hours available is
decreased by ! hours because of planned equipment
maintenanceS Row will manufacturing plans be
affectedS

◦  E decrease of ! hours in finishing capacity is within the Ellowable

ecrease. Total profit will decrease by the value of the shadow
price for each hour that finishing capacity is decreased.
Therefore, we can predict that the total profit will decrease by !
W$0 5 J2 to G00. Rowever, we must re)solve the model in
order to determine the new values of the decision variables.
 

,arameter *nal#sis in Analytic Solver

Platform
 Solver  can be used to perform sensitivity analysis
by either4
 /"amining the sensitivity reports or 
 (hanging data in the model and re)solving it

 !nalytic Solver Platform offers an alternative

approach to sensitivity analysis called parameter
anal#sis, which allows you to run multiple
optimizations while varying model parameters
within predefined ranges.
 

Example 13'1$ !ingle ,arameter

*nal#sis for the !!C ,roblem
 Investigate the impact of
changing finishing hour
capacity over a range from
12 to 32.
◦ (hoose an empty cell in the
spreadsheet =e.g., ;#@
◦ ;rom !nalytic Solver Platform
ribbon, click Parameters button
and choose "%timization.
◦ efine range in ;unction
 Erguments dialog.
◦ Aeplace the value in cell  by
5;#
 

Example 13'1 Continued

 ;rom the $e%orts button in the
 !nalysis group in the !nalytic
Solver Platform ribbon, select
"%timization $e%orts and then
Parameter !nalysis
 -ove decision variable and
ob&ective function cells to the right
$esult Cells pane, and move the
parameter cell ;# to the right
Parameters pane.
 In the drop)down bo", select +ary
 !ll Selected Parameters
Simultaneously/
 'et 0aor !xis Points to number

of parameter values to test.

 

Example 13'1 Continued

 Barameter analysis results

◦ Aeformat the results to make them easier to understand.

;or e"ample, name the columns with descriptive labels
instead of cell references: use charts to visualize the
results.
 

Example 13''$ Multiple ,arameter

*nal#sis for the !!C ,roblem
 'uppose that we wish to e"amine the effect on the
optimal profit of changing both the ;abrication and
;inishing hour limitations, similar to a two)way
data table.
 ;ollow the procedure in /"ample 1#.!1 to define

the parameter for the ;inishing limitation.

◦ In the unction !r.uments dialog, set the range for the
;abrication limitation between 02 and 122.
 

Example 13'' Continued

 In the 0ulti%le "%timizations
$e%ort dialog, choose both
parameter cells ;! and ;#:
however, we can only choose
one result cell. In this case,
choose !!, which represents
the ob&ective function value.
 In the drop)down bo", select +ary
-o Selected Parameters
'nde%endently .
 

Example 13'' Continued

 Aesults