Computation - Operations Management/Industrial Engineering

Computation

Process Flow

Optimization Models

Products Only

Resources and Materials

Number of Resources

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	Process Flow Optimization
	- Number of Resources

The third option produces a mixed integer programming model that in addition to variables for product sales, resource hours and materials used provides integer variables for the number of each resource.

Clicking OK presents the Linear Model dialog below. The first four variables represent the number of each of the four resources. For many cases this will be equivalent to the numbers of machines used. The number variables are constrained to be integer. The remainder of the model is similar to the Project_LP2 model.

The figure below shows the model constructed with the third model option. The data for the model is derived directly from the data on the Project Worksheet. The solution shown is the optimum numbers of machines for each resource. Note that we have changed the maximum numbers to 10. The optimum product mix has sales at their maximum values.

The optimum sales quantities are transferred to the Sales column on the Project worksheet. The optimum numbers of resources are transferred to the Number Used column. The optimum solution values are linked by formulas to the Project LP3 worksheet, and the associated columns are colored yellow. The user can change the values in the two columns, but the automatic links to the Project L3 worksheet are lost.