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Using Excel to solve linear programming problems
Technology can be used to solve a system of equations once the constraints and objective function have been defined. Excel has an add-in called the Solver which can be used to solve systems of equations or inequalities.
Consider this problem:
Example: A corporation plans on building a maximum of 11 new stores in a large city. They will build these stores in one of three sizes for each location ? a convenience store (open 24 hours), standard store, and an expanded-services store. The convenience store requires $4.125 million to build and 30 employees to operate. The standard store requires $8.25 million to build and 15 employees to operate. The expanded-services store requires $12.375 million to build and 45 employees to operate. The corporation can dedicate $82.5 million in construction capital, and 300 employees to staff the stores. On the average, the convenience store nets $1.2 million annually, the standard store nets $2 million annually, and the expanded-services store nets $2.6 million annually. How many of each should they build to maximize revenue?
Assign the variables:
x1 = number of convenience stores
x2 = number of standard stores
x3 = number of expanded services stores
Write the constraints:
a. x1 + x2 + x3 = 11
b. 4.125 x1 + 8.25x2 + 12.375x3 = 82.5
c. &nbs ...