Tim Kuehne 10 Step Problem
1. Put yourself into the problem
a. What does my job
involve?
b. What decision do I need
to make?
c. What information do I
need to solve this
decision problem?
2. On what basis will I be
evaluated as a manager in this
problem situation?
3. Select a quantitative tool to use
to assist in making the decision?
4. Write out the objective function
in words?
5. Write out the restrictions in
words.
6. Define the decision variables
a. Relate to the decisions
you need to make based
on Step 1b
7. Develop an objective function
based on Step 4.
8. Develop constraints based on
Step 5.
9. Solve the decision problem
utilizing spreadsheet analysis.
10. Interpret your results in words.
Module 1
1. Georgia Farmer
a. Selecting crops to grow
b. How many acres of watermelon and cantaloupe
need to be sown to maximize profits
c. Total Acres Available=100
1 Acre Watermelon needs=50 gal. Water/day
20 pounds fertilizer
2hrs to harvest
yield=90 salable units
1 Acre Cantaloupe needs-75 gal Water/day
15 pounds fertilizer
2.5 hrs to harvest
yield=300 salable units
6000 gal H2O available per day
Fertilizer 10$ / 50lb bag
laborers 5$ per hour
2. Maximizing profit with available resources
3. Linear Programming
4. Profit for either crop would Number of Units times sale
price, minus costs (fertilizer plus labor)
5. There is a maximum of 100 acres available and a
maximum of 6000 gallons of water/day
6. X1=Acres of Watermelon
X2=Acres of Cantaloupe
7.
𝑋
WATERMELLON 3(90𝑋1 ) − [5 ( 21 ) + 10( 501 )
20𝑋 )
𝑋 15𝑋
CANTALOUPE 300𝑋2 − [5 (2.52 ) + 10( 50 2)
8. WATERMELLON 50𝑋1 ≤ 6000 (H2O constraint)
CANTALOUPE 75𝑋2 ≤ 6000 (H2O constraint)
X1,X2≥0 (non-negativity constraint)