solver- maximum profit

[smallsun]

HI

If someone knows this, pls help me . I am trying to use SOLVER to solve
the problem:

Ex: I have 8 products . Each of them need a different litre milk to
produce. We just have maximum 18,000,000 litre. I wanna have maximum
profit within my capacity.

I did like folowing pattern

Sale = quantity X price
varialle cost = quantiy X varibale cost per unit
Fixed cost = number
Input = quantity X milk required per unit

Profit = sale- total variable cost (8 items)- fixed cost(8 items)

My target cell: profit
My adjustatble celss: range of number for sale
contrainst that sum of input for 8 items <= 18,000,000

I put all formular in all cells.

After running , i shows only one item that should use all 18,000,000
litre of milk.

I dont know what happened/
Any body knows this, pls pls pls help me ?
Thanks

 

[mangesh_yadav]

You don't seem to have constraints on the quantity of each of the 8
products. And do you have any other constraints.

Mangesh

 

[smallsun]

No any other contrainst.
Because we have only 18,000,000 litre of milk, I wanna know the maximum
profit i can get if i use the most of capacity to product 8 items.
Supposely, we can sell all what we product

 

[mangesh_yadav]

Hi,

with the given data, I agree with the solution as it will give you that
product which has the least variable cost (or leats total cost). This is
due to the absence of any other constraints. Maybe if you have
constraints such as demand for that particular product does not exceed
'x' amount, then the solver will try to re-allocate the milk properly.

Mangesh

 

[Tushar Mehta]

Unless the quantity of milk required to produce one or more of the
products is some pathologically large number the solution doesn't really
need Solver.

Well, that's not quite true. Solver can make life easy but the solution
will be to produce a single product.

Here's how you can do it without Solver.

For each product calculate the profit, which is given by quantity
producable using all the milk * the unit margin (which is price -
variable cost) - the fixed cost. Find the product with the highest
result and that's what you should produce.

--
Regards,

Tushar Mehta
www.tushar-mehta.com
Multi-disciplinary business expertise
+ Technology skills
= Optimal solution to your business problem
Recipient Microsoft MVP award 2000-2005