The managing director of a steel plant faces the decision of how much of each raw material to order for the plant for the following month.
Due to lower and upper bounds on the quantities of each and every raw material in a mountain and fluctuating amounts of electricity and time consumed for different raw materials, one can not just use the raw material that is most inexpensive. A linear program as well as the solver optimization function of Excel will provide the optimum quantities that meet the constraints.
The top mixture for a batch isn't the top mix for a monthly plan. Although it could be written as a linear model, the typical monthly model from a student will likely not be linear. This instance offers the foundation for an introductory course on linear versus nonlinear models and linear programming.
PUBLICATION DATE: April 06, 2011 PRODUCT #: UV6307-PDF-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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