MKTG 2030 Lecture Notes - Lecture 3: Bran, Total S.A., Maximum Risk
Document Summary
Lecture 3: common business applications and excel solver. Linear programming (lp) can be used for many managerial decisions: For a particular application we begin with the problem scenario and data, then: define the decision variables, formulate the lp model using the decision variables. Implement the model in excel solver: solve. Example 1 product mix. Imagine that you are managing a factory that is building three products: tv sets, stereos and speakers. Each product is assembled from parts in inventory, and there are five types of parts: Chassis, picture tubes, speaker cones, power supplies and electronics units. Your goal is to produce the mix of products which will maximize profits, given the inventory of products on hand. Assume that you can sell tv sets for a gross profit of each, stereos for a profit of each, and speaker for each.