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Production Mix Model Excel
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Version
20
This model calculates the Product or Service Mix that
maximizes overall profit considering available
resources. It will identify the mix (number) of each
Production Item to produce and any remaining
resource.
Up to six unique Production Items can be handled with
ten specific resource inputs. Production Items can be
considered as the output of any process including
manufactured items and the provision of services.
Resources are anything that is needed to produce or
provide the Production Item. This may include
materials, labor, machine time, floor space,
transportation services etc. The model applies Linear
Programming to identify the optimum result. It
considers the resource demand, profit contribution
and
any minimum or maximum production requirements for
each Production Item. By using the Solver Add-in
included with Microsoft Excel the optimum solution is
identified and can then be manually adjusted to test
alternative scenarios. Operation is fully automated
with tabular inputs and outputs. No knowledge of
Linear Programming or Excel is required for use.
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