RAPID MINER LAB 3

CMM426

BUSINESS INTELLIGENCE AND ANALYTICS

SEMESTER 2

ACADEMIC SESSION 2022/2023

PREPARED BY: LIM LIEW XING

MATRIC NO: 152032

 This is a report for answering the Interpretation and explanation of the
spreadsheet model and sensitivity analysis. The answer report and sensitivity report is
in the Excel spreadsheet file.

The worksheet model that made in Microsoft Excel helps us figure out the
best way for Company XZY to meet the weekly demand for Product A, Product B,
and Product C at the least cost. The model uses linear programming to find the best
way to make as much as possible while still meeting the requirements. The amounts
of A, B, and C made at Plant 1 and Plant 2 are the choice factors in the model. We use
the Solver Add-in to find the best numbers for these decision factors that will reduce
the total cost as much as possible. The total cost is found by increasing the cost per
hour for Plant 1 and Plant 2 (C4 and D4) by the number of hours spent at each plant
(C12 and D12). The company's goal is to keep this total cost as low as possible and
keep up with what customers want each week. To meet the weekly needs of our
customers, we've set three limits based on their needs: running Plant 1 for an hour
costs RM60 and makes 5 units of Product A, 2 units of Product B, and 7 units of
Product C. On the other hand, it costs RM50 to run Plant 2 for an hour, which makes
3 units of Product A, 2 units of Product B, and 9 units of Product C. To meet customer
needs every week, the company must make at least 60 units of Product A, 30 units of
Product B, and 126 units of Product C. In cells G7–G9, make sure that the total
production of each product, which is determined by multiplying the yield of each
product by the production amount, is greater than or equal to the weekly demand.
Then, Solver is used to find the best output plan by changing the numbers in cells E7–
E9, which are the decision variables, while keeping the limits in mind. Once Solver
finds a solution, it shows the best production amounts in the cells for the decision
variable or the output cells, depending on which cell it is in.

After running the Solver tool, the Answer Report will describe the best
solution, including the value of the objective function that minimises the cost and the
values of the choice factors that lead to this best solution. The goal of the Sensitivity
Report is to help us figure out how the best answer changes when the model changes.
It tells you about the shadow prices, which are also called "dual values." Shadow
prices show what will happen if you loosen or tighten the limits. A favourable shadow
price means that if Company XYZ raise our weekly demand, which is on the right
side of the limit, the ideal cost will go up. On the other hand, a negative shadow price
means that the ideal cost would go down if the weekly demand went down. The
Sensitivity Report also tells you how much the right-hand side of each constraint can
grow or shrink without changing the best answer. By looking at the Answer Report
and the Sensitivity Report, the company can learn about the best way to plan output
and how changes to the model will affect it. Company XYZ can figure out the best
way to meet weekly customer needs while keeping production costs as low as
possible. Company XYZ can also look for any problems or chances that can be fixed
during the production process.