Available: 12 Small Legos + 8 Large Legos

Need 2 large + 2 small to build Table

Need 1 large + 2 small to build Chair

Profit = $15 for table What is Max Profit + how do you accomplish it?
Profit = $9 for chair

Profit = 15T + 9C T= table

C=chair
Constraints Non-Negative Constraints
Large Legos: 2T + 1C <= 8 T>=0
Small Legos: 2T +2C <=12 C>=0

Use SUMPRODUCT when calculating this problem

Binding - means using everything available (no slack)

Example in Class
The Optimal Product Mix

A simple (and Tasty) Example

You want to make as much money as possible at tomorrow's bake sale

You know 2 different cookie recipes: chocolate Chip Cookies and sugar cookies
you can seel all you make if you price at $1.5 per chocolate chip cookie and $1 per sug

You have a finite amount of supplies. You have to follow the given recipes exactly, but can make part

you have the following ingredients on-hand, and don't plan to go to the store for more:
1.5 boxes of butter (6 sticks)
5 cups of sugar
1 dozen eggs
2 cups of chocolate chips
1/2 bag (10 cups) of flour

Question: How many batches of each type of cookie should you make??

Recipes:
Sugar Cookie Chocolate Chip Cookies
2 sticks butter 2 sticks butter
2 cup sugar 1cup sugar
3 eggs 2 eggs
2 cups flour 1 cup chocolate chip
 2 cup four
Makes 20
Makes 20
Profit per batch:
$20 Profit per batch: $30

Profit: $1.5 per choc. Chip cookie

$1 per sugar cookie

Decision Variable: C = # of batches of Choc. Chip cookies

S = # of batches of Sugar Cookies

Objection Function: Max Profit = 30C + 20S

Constraints:
Butter 2C + 2C <= 6
Sugar 1C + 2S <=5
Egg 2C + 3S <=12
Flour 2C + 2S <=10
Chips 1C + 0 <=2

yellow area
ookie and $1 per sugar cookie

but can make partial batches

Resources
6 sticks of butter
5 cups sugar
12 eggs
2 cups chocolate chips
10 cups flour
Microsoft Excel 12.0 Answer Report
Worksheet: [DS 412 Notes.xlsx]Using Solver
Report Created: 2/2/2011 8:08:55 PM

Target Cell (Max)

Cell Name Original ValueFinal Value
$D$8 Maximize Profit - 66.00

Adjustable Cells
Cell Name Original ValueFinal Value
$B$5 # built Tables 0 2
$C$5 # built Chairs 0 4

Constraints
Cell Name Cell Value Formula StatusSlack
$D$11Large Laegos Profit 8.00 $D$11<=$F$11
Binding 0
$D$12Small Legos Profit 12.00 $D$12<=$F$12
Binding 0
Microsoft Excel 12.0 Sensitivity Report
Worksheet: [DS 412 Notes.xlsx]Using Solver
Report Created: 2/2/2011 8:08:56 PM

Adjustable Cells
Final ReducedObjectiveAllowableAllowable
Cell Name Value Cost CoefficientIncreaseDecrease
$B$5 # built Tables 2 0 15 3 6
$C$5 # built Chairs 4 0 9 6 1.5

Constraints
Final ShadowConstraintAllowableAllowable
Cell Name Value Price R.H. Side IncreaseDecrease
$D$11Large Laegos Profit 8.00 6.00 8 4 2
$D$12Small Legos Profit 12.00 1.50 12 4 4
Lego Problem

Decision Variables
Tables Chairs
# built 2 4

Objective Function Profit

Maximize 15 9 66.00

Constraints (Used ) # Available

Large Laegos 2 1 8.00 <= 8
Small Legos 2 2 12.00 <= 12