Solver

[Adrae]

Does anyone know how to make Solver take into account a ratio when determining profit maximization. I have four items and the ratio of Item 1 to 2 should be 7 to 5.

Any ideas?

Thanks Adrae
This message was edited by Adrae on 2002-10-24 10:18

 

[Mark W.]

You just integrate that ratio into your model. Care to share your model for discussion purposes?

 

[Adrae]

Sure - here is an example:

1. Four juices are produced - OJ, GJ, PJ, All-in-One
2. The All-in-One contains equal parts of OJ, GJ, PJ
3.Contraints: 100 quarts of OJ; 75 quarts of GJ; 50 quarts of PJ
4. Cost per quart: $2 for OJ; $1.60 for GJ; $1.40 for PJ
5. Prices: $1 for OJ; $.90 for GJ; $.80 for PJ; $1.10 for All-in-One
6. GJ should be no more than 30% of total output
7. the ratio of the number of OJ quarts produced and number of PJ quarts produced should be 7 to 5.

It's this last that is giving me headaches. I'm not at all sure how to incorporate it.

Any ideas?

Thanks

 

[Mark W.]

What's the Unit of Measure on which the Sale Price is based?

 

[Adrae]

Oh right, the price and costs are on a per gallon.

Thanks
Adrae

 

[Mark W.]

Is the Cost per Quart or Gallon? See #4 above. What about the UOM of the constaints?
This message was edited by Mark W. on 2002-10-24 14:44

 

[Adrae]

Cost per gallon.

 

[Mark W.]

On 2002-10-24 14:35, Adrae wrote:
Oh right, the price and costs are on a per gallon.

Thanks
Adrae

Hey, with the Price and Cost listed above you'd be better off not producing anything!!! You're losing $$$ on everything you produce.
This message was edited by Mark W. on 2002-10-24 14:47

 

[Adrae]

Sorry - I've gotten confused. I should have put everything in quarts.

As it is:

PRICE is per QUART
COST is per GALLON
UOM of constraints is QUARTS

In Solver, I had converted everything to quarts, so instead of what I listed above for cost, let's use the following:

$.50 for OJ
$.40 for GJ
$.35 for PJ

Do you know how I can incorporate the ratio of 7 to 5?

Thanks Adrae

 

[Mark W.]

I did this in a hurry... my stomach is growling. Your production appears to be constrained by GJ. Also, I wasn't sure how to interpet the constraint listed as #6 above since GJ is also a component of All-in-One. Use with caution!!! ...But this should get you started.

Juice.xls
	A	B	C	D	E	F	G	H	I	J	K	L
1	Juice	Limit	Quantity	Price	Cost	Profit		Model:
2	OJ	50	0	$1.00	$0.50	$0.00		$115.00
3	GJ	75	25	$0.90	$0.40	$12.50		3
4	PJ	50	0	$0.80	$0.35	$0.00		TRUE
5	All-in-One		150	$1.10	$0.42	$102.50		TRUE
6	Total		175			$115.00		TRUE
7	30%ofTotal		52.5					TRUE
8								TRUE
9								100
10
Sheet2

This message was edited by Mark W. on 2002-10-24 15:14