Linear Programming Project
Overview
For this assignment, your instructor will assign a linear programming project based on the following specifications:
It will be a problem with at least three constraints and at least two decision variables.
The problem will be bounded and feasible. It will also have a single optimum solution (in other words, it won’t have alternate optimal solutions).
The problem will also include a component that involves sensitivity analysis and the use of the shadow price.
Instructions
You will be turning in two deliverables, a short writeup of the project, and the spreadsheet showing your work.
Writeup
Your writeup should introduce your solution to the project by describing the problem.
Correctly identify what type of problem this is. For example, you should note if the problem is a maximization or minimization problem, as well as identify the resources that constrain the solution.
Identify each variable and explain the criteria involved in setting up the model. This should be encapsulated in one or two succinct paragraphs.
After the introductory paragraph, write out the LP model for the problem. Include the objective function and all constraints, including any non-negativity constraints. Then, you should present the optimal solution, based on your work in Excel. Explain what the results mean.
Write a paragraph addressing the part of the problem pertaining to sensitivity analysis and shadow price.
Spreadsheet
Please set up your problem in QM for Windows or Excel and find the solution using Solver.
Clearly label the cells in your spreadsheet.
You will turn in the entire spreadsheet, showing the setup of the model, and the results.