FACULTY OF SCIENCE COMPUTER AND

MATHEMATICS

COURSE: OPERATIONAL RESEARCH

CODE: QMT 437
GROUP PROJECT ASSESMENT 3

LECTURE NAME: MADAM NAZUHA BINTI MUDA@YUSOF

GROUP: CS244/4B1
GROUP MEMBERS:

Name Matric No

FATIN NABILAH BINTI MUSRI 2018263572

NORZAHIERAH BINTI NOHO 2018286364

Table of Contents
CHAPTER 3: LINEAR PROGRAMMING SOLUTION USING SOLVER...................................1
CHAPTER 4: TRANSPORTATION PROBLEM SOLUTION USING SOLVER........................6

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CHAPTER 3: LINEAR PROGRAMMING SOLUTION USING SOLVER

Question:

For topic 3, we decided to select a question from ODL Assessment 1 March 2020, Question
2 Part B. From this question, the objective is to minimize Z with decision variables which are
X and Y. There are 3 constraints with the 2 non-negative numbers.

Step to solve transportation problem using Microsoft Excel (Solver)

For this group project, we are going to solve the problem by using Microsoft Excel Solver.
We will discuss how to solve the question by using Microsoft Excel Solver.
Step 1: First we need to open Microsoft Excel and setting up the problem in Microsoft Excel.
In Excel, we build a table with the information from linear programming problem.

Step 2: We entering the formula for the objective and constraints: Objective (B3) =
2*B6+5*B7. Constraints: Constraint 1 (B10) = 2*B6+1*B7, Constraint 2 (B11) = 1*B6,
Constraint 3 (B12) = 3*B6+3*B7, Non-negative 1 (B13) = B6, Non-negative 2 (B14) = B7
Step 3: Now, we ready to use Solver. Go to cell B3, find Data Menu Tab and click Solver.
Set objective to Min with the cell $B$3. By changing Variable Cells, we choose decision
variable.

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Step 4: At this stage, we required to add constraints. Click add box to add constraints. For
the last constraints we click ok to check if all constraints is add in box subject to the
constraints. After we have finish add all the constraints, then click solve. We select GRG
Nonlinear for solving method.
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4 2

Step 5: After click solve, solver result will pop up. Tick the button keep solver solution and
then click OK. After that we will get the optimal solution for the linear programming.

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Findings
The Optimal Solution:
From the result that using Microsoft Excel Solver, the objective is minimize z with value 16.
For decision variables, x with the value 3 and y with the value 2. For constraints, constraint 1
and constraint 3 produce the same value with 8 and 15 respectively. Constraint 2 is different
with value 3 and 2.

The Limits Report:

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The Sensitivity Report:
It is optimal to order 3X and 2Y. This solution give the minimize value of 16. This solution
use all resources available in constraints 1 and constraint 3 (8 constraint 1 and 15 constraint
2).

The Answer Report:

The optimal solution to the linear programming has the final value; 16 with the constraints 1
with value 8, constraints 2 with value 3 and constraints 3 with value 15. Non-negative 1 and
non-negative 2 with value 3 and 2 respectively. The constraint 1 and constraints 3 is
declared with Binding with a slack value zero while constraints 2 is declared with not binding
with slack value is one.

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Manual solution for linear programming:
1)

2)

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CHAPTER 4: TRANSPORTATION PROBLEM SOLUTION USING SOLVER

Analysis:
For topic 4, we decided to select a question from past year’s question which is July 2017,
Part B Question 4. This question is about Musafir Co. Which produces travelling bags from
three factories which is factory A, factory B, and factory C. Musafir Co will ships the travelling
bags to three companies which is allocated at Jitra, Kerteh, and Taiping. Based on the
question, we can see that there are two tables. The first table is about the unit production
cost and also supply. For the second table is the demand of travelling bags for each
companies. The objective of this question is to minimize the total production cost of
distributing the travelling bags.

Step to solve transportation problem using Microsoft Excel (Solver)

For this group project, we are going to solve the problem by using Microsoft Excel. In order
to solve this question, we need to check whether total supply (SS) is equal to total demand
(DD). For this question the total for both supply and demand are balanced. After that, we can
continue to solve the problem in Microsoft Excel. We will discuss how to solve the question
by using Microsoft Excel.

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Step 1: First we need to open Microsoft Excel and formulate the model that we are going to
solve. There are two table. The first one is about the unit cost and the second table is the
transportation.

Step 2: Next, we have to calculate the total sum for each factories, companies and the total
cost.

Step 3: On the tab click Data after that go to the analyze group then click solver. Then, set
the Set Objective to the total cost and tick Min as our question wants to minimize the cost.
For the changing variable cells, select the values for transportation as we need to find out
how many units to transport from each factory to each company in order to minimize the
cost. At the Solving method choose Simplex LP.

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Step 4: At this stage, we need to add constraints. Each factory has a fixed supply and each
company has a fixed demand. So, we need to find out the total unit that can satisfied both
factory and company. Click add box to add constraints. After we have finish add all the
constraints, then click solve.

Step 5: After click solve, solver result will pop up. Tick the button keep solver solution and
then click OK. After that we will get the optimal solution for the transportation problem.

Findings:

Based on the findings, we can see how many units of travelling bags need to ship
from each factory to each company. It is optimal to ship 500 unit of travelling bags from
factory A to company Jitra with cost RM 55, 1000 unit of travelling bags from factory A to
company Kerteh with cost RM 53. Factory B ship 2500 unit of travelling bags to company
Jitra with cost RM 49 and both company Kerteh and Taiping will be ship 1300 and 1200 unit
of travelling bags with cost RM 56 and RM 58. The solution gives the minimum total
transportation cost of RM 6980.

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 For this question, the problem is balanced as total supply is equal to total demand
which is 6500 units of travelling bags. If the problem is unbalanced, we need to add dummy
row if demand exceeds supply. Then, if supply exceeds demand a dummy column will be
added. This question also does not face degeneracy problem. How we ensure that there is
no degeneracy? We can use a formula which is number of occupied cells = number of rows
+ number of column - 1. If the problem does not satisfy the formula, then the problem is
degenerate. To rectify a degenerate problem, an empty cell must artificially treated as an
occupied and need to place zero to represent a fake shipment.

Manual solution for transportation problem:

1)

2) 3)